Trump Signs Executive Order for Crypto-assets

 The deal is done... or is it?

Throughout his career, Trump has been known for leveraging his position to negotiate deals that benefit his personal interests and those of his companies, whether through branding, real estate ventures, or business partnerships. He often seeks to position himself in ways that maximize personal or corporate gain, sometimes at the expense of broader policy goals or public perception.

For example, Trump’s real estate deals have often been structured to create tax advantages or favourable financing terms for his businesses, and his brand has been a central component of his wealth. Even during his presidency, he continued to hold business interests that he did not divest, leading to concerns about conflicts of interest and how his personal wealth could intertwine with policy decisions.

Given this track record, it is crucial to factor in the possibility that his interest in crypto might be influenced by both broader economic strategy and personal financial considerations.

Why the crypto policy shift?

Firstly, crypto investors, companies, and executives made significant contributions to Trump’s 2024 campaign. These financial support could be seen as a motivating factor behind his pivot toward pro-crypto policies. For Trump, these donations represent not just support for his political goals, but also an alignment with an industry that has shown potential for explosive growth. The crypto industry is inherently speculative and can be seen as a high-risk, high-reward area - exactly the kind of sector where Trump, with his business background, might see opportunities for personal and political gain. In other words, supporting crypto could be a way to align with wealthy donors, investors, and executives who stand to benefit from an environment that is more favourable to digital assets.

Then, the Trump’s promise to keep 100% of Bitcoin holdings acquired by the U.S. government further emphasizes this financial angle. Given his history of maximizing financial leverage, Trump could see these assets - whether seized or acquired through other means - as potential vehicles for both wealth accumulation and political leverage. Holding a national crypto stockpile could also serve as a way to ensure that the U.S. maintains influence over the global crypto market, an area where Trump might want to position himself as a key figure. If the U.S. government were to amass significant Bitcoin holdings, it could potentially benefit Trump’s network of allies or supporters in the crypto industry.

Many of the individuals appointed to leadership positions under Trump’s potential administration are aligned with pro-crypto ideologies or have close ties to financial sectors with strong crypto interests. Appointing figures such as Scott Bessent (a hedge fund manager with ties to the crypto industry) to lead the Treasury Department signals that Trump is looking to support the financial structures that benefit from cryptocurrency's rise. As Trump himself has seen the financial benefits of maintaining close ties to wealthy business leaders, it is possible that some of his crypto-friendly moves are designed to protect or enhance the interests of key business figures or entities connected to him or his broader political network.

Finally, Trump’s ventures - real estate, branding, and licensing deals - could also potentially benefit from the rise of cryptocurrency. The growing intersection of traditional finance and crypto means that Trump’s companies could eventually tap into blockchain technology, digital payment systems, or other innovations tied to the crypto sector. For example, real estate transactions using crypto could become more common, and Trump’s properties could become key players in this new financial ecosystem. By promoting favourable crypto policies, Trump might be positioning his businesses to capitalize on these trends.

Given Trump’s business history and potential financial entanglements, there is an obvious concern about conflicts of interest. If U.S. policy shifts in favour of crypto, benefiting companies or individuals with ties to Trump, there could be questions about whether his personal financial interests are unduly influencing public policy. 

The fact that crypto executives contributed heavily to his campaign could raise concerns about whether the policy shift is a direct result of those contributions. Critics might argue that the administration is aligning its policies to benefit donors and major players in the crypto space.

If Trump or companies associated with him have financial exposure to cryptocurrencies (either through direct investments or partnerships), there might be concerns that his policies could unfairly favour those assets, especially in light of his past efforts to position himself for personal financial benefit through public office.

By appointing figures like Paul Atkins, who has a history of opposing heavy regulation, Trump could be signalling that his administration is more likely to push for a "hands-off" approach to crypto regulation. While this may benefit the industry by fostering innovation, it could also benefit Trump’s financial interests if he has personal stakes in businesses that stand to gain from less regulatory oversight.

While the executive order reflects a broader strategic interest in fostering crypto innovation and securing U.S. leadership in the digital asset space, it is important to acknowledge the potential financial motivations driving these decisions. Trump’s history as a dealmaker who leverages his position to benefit personally means that the shift towards pro-crypto policies may not solely be motivated by ideological or economic factors related to national interest. It is possible that personal financial interests, donor support, and the potential for future wealth creation could be influencing his stance on crypto.

In this light, Trump’s pro-crypto policies may not just be about promoting the U.S. as a leader in blockchain innovation but also about creating an environment where his financial networks can continue to thrive. Given his track record, it would be prudent to critically assess whether these policies are more about advancing personal or political gain than about the broader economic benefits they claim to offer.

Investing in Pre-Launch Crypto Coins

Diving into the world of pre-launch crypto coins, or presales, is like stepping into a treasure hunt filled with both potential fortunes and lurking pitfalls. For adventurous investors eager to get a head start on ground breaking projects, this avenue offers both thrilling opportunities and significant risks. The landscape of pre-launch crypto coins is dynamic and offers tantalizing yet unpredictable chances of striking it rich.

The Allure of Pre-Launch Crypto Coins

Bargain Prices: Imagine scooping up digital tokens at a markdown before they hit the mainstream market. That's one of the prime attractions of pre-launch coins—they offer the chance to buy in at a potentially lucrative discount, setting the stage for impressive gains if the stars align.

Exclusive Early Entry: Early birds gain access to promising projects, unlocking the door to potential high returns and enticing perks like bonuses or additional tokens. This exclusive vantage point could be your ticket to substantial profits if the project takes off.

Skyrocketing Returns: History has shown that successful pre-launch coins can experience explosive growth. For instance, savvy early investors in giants like Ethereum and Ripple reaped remarkable rewards as these coins soared on major exchanges.

Navigating the Risks

Fraud and Scams: The crypto realm can be a minefield, teeming with scams and fraudulent schemes. With regulation still catching up, investors must arm themselves with thorough research and vigilance to dodge these traps.

Wild Volatility: Brace yourself for a rollercoaster ride—pre-launch crypto coins can experience dramatic price swings, testing investors' nerves as their holdings fluctuate wildly.

Project Viability: Not every venture crosses the finish line. Many new cryptocurrencies struggle to gain traction, and investing in a project that doesn't make it could result in a total loss of your capital.

Liquidity Challenges: Want to cash out quickly? Not so fast. Pre-launch tokens might not be easily tradable, leaving investors in a bind if market sentiment sours.

Cybersecurity Concerns: With the crypto world under constant threat from cyberattacks and hacking, safeguarding your funds and ensuring strong security measures in projects becomes paramount.

Spotlight on Recent Presales

ApeMax (APEMAX): Dive into "Boost-to-Earn" staking with ApeMax, where rewards flow even during the presale phase. Its integration with Binance Smart Chain promises efficient transactions.

Bitcoin Minetrix (BTCMTX): Harness the "Stake-to-Mine" mechanism to earn Bitcoin on the Ethereum network, aiming to ease sales pressure through this innovative feature.

eTukTuk (TUK): Transforming developing nations with eco-friendly blockchain solutions, eTukTuk is revving up plans for Power Staking, a Layer 2 Sidechain, and impactful charity initiatives.

Meme Kombat (MK): Embrace the thrill of Play-to-Earn gaming intertwined with meme coin excitement, offering enticing staking returns and a presale haul of over $9 million.

Sponge V2 (SPONGEV2): Following the success of $SPONGE, Sponge V2 is creating buzz with plans for a Play-to-Earn game and exchange listings, building on its predecessor's momentum.

Rolling the Dice: Can You Get Rich?

The quest for riches through pre-launch crypto coins is fraught with uncertainty, hinging on project success, market tides, and investor timing. While some have hit the jackpot, others have faced stark losses. Approaching these investments armed with caution and a deep understanding of the risks is essential.

Venturing into pre-launch crypto coins promises a thrilling ride, with the potential for dazzling rewards shadowed by considerable risks. Prospective investors must embark on this journey with diligent research, a keen eye on project viability, and readiness to accept full investment loss. While the path to fortune is unpredictable, a savvy and informed approach can help navigate this exhilarating yet perilous landscape.

Singapore Exchange (SGX) vs. S&P 500

For Singaporean investors, the age-old question arises: where to park your capital? Two popular options are the local Singapore Exchange (SGX) and the behemoth S&P 500, representing the US market. Let's delve into their performance to guide your investment decisions.

Understanding the Titans

• SGX: The Singapore Exchange is a premier bourse in Southeast Asia, offering a diverse range of assets like stocks, bonds, derivatives, and Exchange-Traded Funds (ETFs).
• S&P 500: The S&P 500 tracks the performance of 500 leading companies listed on US stock exchanges, representing a significant chunk of the American economy.

Performance Check

Historically, the S&P 500 has been a strong performer, averaging around 10% annualized return. However, past performance doesn't guarantee future results.

Looking closer, you'll need to consider a specific timeframe. Here's a brief comparison:

• Short Term: Both markets can experience volatility. Recent events can significantly impact performance in either direction.
• Long Term: The S&P 500 has generally shown more consistent growth over extended periods.

Beyond Numbers

Performance isn't the sole factor. Here's what else to ponder:

• Diversification: SGX offers exposure to Southeast Asian markets, providing diversification beyond the US.
• Investment Style: The S&P 500 is a passive investment, mirroring the market's performance. SGX allows for picking specific stocks or ETFs that align with your investment goals.
• Currency Fluctuations: Since SGX trades in Singapore Dollars (SGD), currency fluctuations can impact returns for foreign investors in the S&P 500.

The Takeaway

There's no one-size-fits-all answer. Both SGX and S&P 500 offer distinct advantages. Consider your risk tolerance, investment horizon, and diversification needs before making a choice. Consulting a financial advisor can provide personalized insights for navigating your investment journey.

Panic Selling, Panic Buying

The worst thing one can do is to sabotage their own financial plans by engaging in the senseless behaviour of panic selling and panic buying. The recent financial turmoil arising from the subprime crisis in the US has unnerved many investors. Just months ago, many investors were still looking at increasing their investments for fear of missing out on the attractive returns that were being dangled by the various well performing stock markets.

Why is it that we find it so much easier to invest our money when markets have headed up significantly and find it so difficult to invest our money when markets are depressed and downside is limited?

Much research had gone into analysing such investor behaviours and it largely boils down to panic buying and panic selling.

When markets are on an uptrend, the good news abound and money appears to be readily available on the tables for anyone willing to reach out for it. Investors are afraid of losing out on pocketing the potential profits with each day's delay. Speculators rush into the markets in panic buying and all sorts of equities, blue chips or not, rise across the board. Yet, when stocks are chased to sky high valuations, not many see the warning signs that whatever goes up must come down, and continue to pour cash into these already risky investments, priming themselves for major losses once the market corrects the excesses.

When the market inbalances start to even out with corrections, people rush to liquidate their investments. Granted, this is sensible behaviour for the protection of the value of the assets will enable one to re-enter the market at a later date. The problem perhaps, is knowing when to re-enter the market. When is the best time to invest again?

Panic selling results in stock valuations falling below their reasonable valuables and once investors have confidence that the valuations are extremely compelling, it should be a good time to start investing in the market again. No one knows when exactly stock markets bottom and neither will anyone know how long bearish sentiments will prevail. However, one thing history has shown us - After a period of negative sentiments and stock prices had been depressed, it is only a matter of time before stocks rebound. As long as time is on the investors' side and free cash is not being earmarked for any use in the short term, it is better to bargain pick some fundamentally solid stocks and hold on to them.

In each investor's lifetime, it is expected that there will come various opportunities whereby the market is put up for sale at fantastic bargains. The major market crashes like US Sub-Prime Crisis in 2008, SARS in 2003, dot com bubble of 2000, Asian Financial Crisis in 1997, Black Monday in 1987, Wall Street Crash in 1929... all presented superb opportunities for the brave to go against the panic selling of the masses. Investors should be rational about investing in the stock market. When the upmarket departmental store launches an exceptional sale, people rush in to grab all sorts of merchandise. When the stock market falls to extremely depressed levels, people are avoiding the market instead of picking up good discounted shares that will bring much happiness once the financial storm blows over?

In the stock market, money is not made by following the crowd. Panic selling and panic buying is not going to help grow the investment portfolio spectacularly. Exceptional returns are only available to those who are able to see beyond the fears of the common investor. Who dares win.

Investing in Bear Markets

The financial meltdown arising from subprime losses may have been the first event in a multi year economy downturn. Property prices are down, foreclosures are up, banks are getting more selective in their loans and stock markets have been on a downward trend.

Is the bear market already upon us? In the near short term, it is highly probable that stock markets are going to continue their downward trend though some bounces will occur when oversold levels are perceived.

Is it time to exit the market and hold cash instead? Cash is king but such downturns are the best investment opportunities for those with spare cash on hand. Pick up stocks with solid fundamentals. During the last downturn, the market darlings were companies with strong balance sheets or a large cash pile to back them up. Blue chips that regularly paid out dividends were also highly preferred because of the stability they accorded. It even spawned unit trusts such as First State Dividend Advantage and SGAM Singapore Dividend Growth.

Pick up stock bargains now. Go contrarian and the rewards will be reap when the economy turns around and fairly valued companies shine through.

POSB MySavings Account

Never before have I been so keen to take up a promotion I received via email. Within 30 minutes of receiving the POSB MySavings Account emailer, I was drawn to the flexibility and higher interest rates being offered and submitted my application online for an account.

What exactly is it about MySavings Account that is so attractive? For a huge bulk of us, POSB/DBS had remained our main bank because of the legacy of POSB being a people's bank. That implies that much of our cash is lying in standard savings account earning measly 0.25% p.a. interest. MySavings Account actually offers a way out by dangling special interest rates as high as 1.5% per annum, 6 times higher.

$50 - $290 : 0.45%
$300 - $790 : 1.00%
$800 - $1,490 : 1.20%
$1,500 - $3,000: 1.50%

What's more is that there is flexibility to increase or decrease the monthly savings amount and even amend the monthly savings date anytime.

I went for the 2nd tier amount in order to enjoy the 1% interest rate but there is a small catch for those who bother to read the fine prints. Depositors who open a MySavings Account with at least $420 monthly savings amount can get a $42 dining voucher at Raffles The Plaza but the cost of the gift may be debited if the MySavings Account is closed or the monthly savings amount is reduced within a year after account opening. My advice is to start the MSA account with a monthly amount of $410 or less to avoid getting this "free" gift unless you belong to the group who is able to commit to a large monthly amount for higher interest rates. Being greedy for this "free" gift may jolly well end up making you worse off if you ever need to close the account within a year.

Low Fee Mutual Funds

Many people had put forward that investors who invest in mutual funds should seek out those that are low cost so that they are not unnecessarily paying for the services of poor performing fund managers. With such an argument, these same people are touting that investing into index funds will be one of the best option available since they are typically low cost.

Is such an investment style justified? After reviewing through the various options, I see that there is no point to deny competent fund managers an equitable renumeration if they are able to deliver value to my investments.

The aim of investing via mutual funds is that risks are diversified and the services of professionals are engaged to manage the funds. Many people expressed dissatisfaction with management fees charged because the funds had not performed up to expectations. This is a justified complaint since no one is willing to be shortchanged when they are paying good money in anticipation of proper returns.

But the truth is that there are mutual funds out there that are very consistently delivering above average returns. Investors just have to do their homework to sieve out these investment gems and invest into them. What harm is there to pay a portion of the returns obtained as renumeration when these returns are not achievable on our own when we have no time to monitor and diversify investments?

NETS Fee Hike

Network for Electronic Transfers, NETS, is owned by DBS, OCBC and UOB and it has just recently announced that transaction levies are going to be upped by between 0.75 and 2 percentage points over 3 months from 1 Jul 2007. This is going to be pegged at between 1.5 and 1.8 per cent of purchases bringing the levy close to credit-card transaction fees which stand at about 2 per cent for Visa transactions and around 3 per cent for American Express.

While around 83 per cent of Singaporean residents currently use NETS for purchases in a strong embrace of cashless transactions, many retailers are starting to advise customers to pay cash or pay more for purchases.

The levy increase appears to be against the original purpose of NETS, to offer alternative system for cashless payment.

While NETS tries to justify that it is facing increasing competition from international card schemes and the increase is necessary to maintain its viability, insisting that NETS transaction fees are still the lowest in the market, it fails to deliver good logic.

Which business raises prices when consumers are not using its products? With the advent of debit cards, cashcards and other more innovative products, NETS is under intense competition and it appears to have made the wrong strategic move in trying to maintain revenues.

More worrying is the fact that NETS is owned by DBS, OCBC and UOB. While these banks had been paying minimal interest rates for savings deposits and lending it out at high rates, pocketing handsome profits, they had opted to squeeze more profits out of retailers with this NETS levy increase. When the backlash against this increase materialises and consumers start abandoning NETS and paying in cash instead, banks are likely to start considering charging consumers for the use of the automated teller machines and cornering the consumer even more.

Consumers are on the way to the guillotine, to be placed at the mercy! Woe!

Fairprice Plus Savings Account and Credit Card

FairPrice Plus is a collaboration between NTUC FairPrice Co-operative Limited (NTUC FairPrice) and Oversea-Chinese Banking Corporation Limited (OCBC Bank) with all banking products and services being provided by OCBC Bank unless stated.

This collaboration seeks to offers simple banking solutions at all FairPrice supermarkets islandwide.

This is a very new player on the banking market but it is worth taking a good look because of various interesting features...

The Fairprice Plus Savings Account provides an interest rate of 1% p.a., much higher than that offered by most banks. Futhermore, there is no minimum opening balance, monthly balance requirements and monthly service charge and with this account, there is access to over 770 OCBC and UOB ATMs islandwide!! Being able to earn 1% interest from the first dollar deposited is something that had not been available to many in a long long time.

Sounds good so far? There is more to come! The Fairprice Plus credit card offers free membership into LinkPoints loyalty program and gives 2 LinkPoints per $1 spent at FairPrice Plus Stores... It even offers 1 LinkPoint per $2 spent for VISA transactions!

FairPrice Plus hopes to stay steadfast to the values of Value, Simplicity and Transparency and I do think that this offer is a very good start. With the entry of such a competitive offering, hopefully it can help shake up the banking sector and get incumbent banks to start revising up their interest rates for basic saving accounts.

Reliability of Online Trading

It is important to get a reliable online trading platform when doing online trading of shares. As delays in trades performed can potentially lose/gain us a lot of money, always have 1 or 2 backups from which trading can still be performed. Just today, DMG's site went down with the following message...

Network Error (tcp_error)
A communication error occurred: ""
The Web Server may be down, too busy, or experiencing other problems preventing it from responding to requests. You may wish to try again at a later time.

For assistance, contact your network support team.

The problem is not with my network connection since I can access other sites such as yahoo, google, POEMS, Fundsupermart, DBS Vickers Securities and iOCBC perfectly well. Always cater for contingencies when trading to avoid being unnecessarily penalised for delays in accessing the online trading platform. Be warned, be careful.

Extended Warranty - Worth it?

Extended warranty is offered on many products these days and while some people found value in them, these plans are rarely a good deal.

Retailers are pushing extended warranties because it generates almost pure profit. It is a triple bet that that the product will breakdown, that the damage will be covered by the extended warranty and that the repair costs will be more than the extended warranty's cost. Considering that the value of electronic products depreciate exponentially these days, purchasing extended warranties will more frequently be money down the drain.

Where possible, charge your purchase to a credit card that extends the manufacturer's warranty and save the premium of the extended warranty. With the quality of products these days, by the time the gadget breaks down, enough will have been saved to replace the faulty product.

If an extended service plan is really percieved to be essential, read the fine print carefully and not rely on the salesperson's assurances. Extended warranty is being paid for to make your life easier, not harder. The terms will definitely be in the store's favour but you have to analyse if it truly benefits you too. When something does go wrong, the worst thing to find out is that you have paid for something that is utterly useless.