Author Topic: Where should you park your money right now?  (Read 362631 times)

Offline petetherock

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Where should you park your money right now?
« on: October 12, 2008, 19:28 »
This is a super forum where hi fi can deviate to other areas and with the help of members here, still get superb answers.

Since many of the members here have been working for 10 years or more, and hence have seen more than 1 financial crisis, I was inspired by Jeff's question on the other thread to ask this.

During the current downturn, where should we put our money?

I would assume many folks here have delayed their hi fi purchases and may consider holding onto hard cash, maybe even in a biscuit tin at home...:)
« Last Edit: October 12, 2008, 19:43 by petetherock »
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Offline asianboy

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Re: Where should you park your mone right now?
« Reply #1 on: October 12, 2008, 19:42 »
if situation is worse, even banks cant be trusted....


heard Iceland is going into national bankruptcy... :o

Offline bong

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Re: Where should you park your money right now?
« Reply #2 on: October 12, 2008, 20:04 »
I would assume many folks here have delayed their hi fi purchases and may consider holding onto hard cash, maybe even in a biscuit tin at home...:)

i heard khong guan has really reference grade build quality for their tins. ;)

anyway, i think the hifi (in terms of price) purchases may slow down, while mid-fi may go up instead! people still need to listen to music to destress ;)
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Offline ew

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Re: Where should you park your money right now?
« Reply #3 on: October 12, 2008, 22:24 »
i bet those home safe manufacturer will benefit most since people may want to stack their hard earn cash in the safe.. hehe

Offline Spunky

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Re: Where should you park your money right now?
« Reply #4 on: October 13, 2008, 00:13 »
i bet those home safe manufacturer will benefit most since people may want to stack their hard earn cash in the safe.. hehe

saw on the news donch know which angmo country the only things moving fast at retail are safe boxes!! :)
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Offline sillyme

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Re: Where should you park your money right now?
« Reply #5 on: October 13, 2008, 10:00 »
Money is worthless unless it is spent.

Time to look for bargains.

Offline DizzyD

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Re: Where should you park your money right now?
« Reply #6 on: October 13, 2008, 11:13 »
for those cash that are really excess and have appetite for risk...pls buy some bluechip stocks...many have fallen 60-70%...these opportunities only come once in 8-10 yrs and most often you will double or triple your initial investments in 3-5yrs time...ON what to buy please ask your stockbrokers...what I can say is if DBS becomes $10-12 / share...time to sit up straight and consider.
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Offline silencer13

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Re: Where should you park your money right now?
« Reply #7 on: October 13, 2008, 11:42 »
for those cash that are really excess and have appetite for risk...pls buy some bluechip stocks...many have fallen 60-70%...these opportunities only come once in 8-10 yrs and most often you will double or triple your initial investments in 3-5yrs time...ON what to buy please ask your stockbrokers...what I can say is if DBS becomes $10-12 / share...time to sit up straight and consider.

Totally agree with this.

IMO, no point keeping all that cash. Real inflation is almost hitting 10% (don't believe what the newspapers tell you, that 5-6% is a massaged figure). That means for every $1k u keep, you are really losing $100 due to rising costs.

Blue chips are a good bet. Try to pick up those stocks which are not really affected by the crisis, but are just dragged down due to the overall state of the economy. These will bounce back pretty quickly.

Foreign currency is also a good bet. MAS is set to release their grip on the S$, so expect the S$ to drop against the other major currencies. Go look at the A$, NZ$, Euro and Sterling, these are all at very low prices now and worth a shot.

If you do fixed-time deposits in A$ or NZ$ with the local banks, the interest rate alone is enough - A$ pays around 5% PA, while NZ$ pays around 8% PA. Compare this with POSB's 0.4% PA, and it's a no-brainer.  :D

See: http://www.ocbc.com/personal-banking/tools%20and%20info/Toi_Rates_FoxFC_Listing.shtm
and: http://www.dbs.com/ratesonline/fdacu.html


Offline basspundit

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Re: Where should you park your money right now?
« Reply #8 on: October 13, 2008, 11:57 »
What about choice U.S properties? I haven't done much research on this and factors regarding foreign ownership of U.S properties, but it stands to reason that with the amount of bad debt regarding properties there should be a ton of good sales from seized properties or owners looking to let go of their debts at a loss...
Unless the pit hasn't bottomed out  :o

Offline game_goondu

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Re: Where should you park your money right now?
« Reply #9 on: October 13, 2008, 12:03 »
Totally agree with this.

IMO, no point keeping all that cash. Real inflation is almost hitting 10% (don't believe what the newspapers tell you, that 5-6% is a massaged figure). That means for every $1k u keep, you are really losing $100 due to rising costs.

Blue chips are a good bet. Try to pick up those stocks which are not really affected by the crisis, but are just dragged down due to the overall state of the economy. These will bounce back pretty quickly.

Foreign currency is also a good bet. MAS is set to release their grip on the S$, so expect the S$ to drop against the other major currencies. Go look at the A$, NZ$, Euro and Sterling, these are all at very low prices now and worth a shot.

If you do fixed-time deposits in A$ or NZ$ with the local banks, the interest rate alone is enough - A$ pays around 5% PA, while NZ$ pays around 8% PA. Compare this with POSB's 0.4% PA, and it's a no-brainer.  :D

See: http://www.ocbc.com/personal-banking/tools%20and%20info/Toi_Rates_FoxFC_Listing.shtm
and: http://www.dbs.com/ratesonline/fdacu.html



talking about foreign $$$ fixed deposit. papers was saying that the aussie $$$ have dropped from about $1.3 to less than $1.
this means that it has dropped 30%. so for those ppl that put assie $$$ as fixed deposit in the hope of getting 5% interest rate, they would have lost more than 25% + whatever exchange rate the bank is charging....
am i correct on the above point?

Offline DizzyD

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Re: Where should you park your money right now?
« Reply #10 on: October 13, 2008, 12:04 »
What about choice U.S properties? I haven't done much research on this and factors regarding foreign ownership of U.S properties, but it stands to reason that with the amount of bad debt regarding properties there should be a ton of good sales from seized properties or owners looking to let go of their debts at a loss...
Unless the pit hasn't bottomed out  :o

I am not familiar with this asset class but my sense is that there are tax considerations in buying US properties and liquidity for property is always an issue. If you want exposure to US properties would not it be better to go into REITS then buying the actual thing. Errmmm but i thought US properties were the source of this evil.

my 2 cents.
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Offline lewlian

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Re: Where should you park your money right now?
« Reply #11 on: October 13, 2008, 12:16 »
talking about foreign $$$ fixed deposit. papers was saying that the aussie $$$ have dropped from about $1.3 to less than $1.
this means that it has dropped 30%. so for those ppl that put assie $$$ as fixed deposit in the hope of getting 5% interest rate, they would have lost more than 25% + whatever exchange rate the bank is charging....
am i correct on the above point?

yes. annualize the loss too if the tenor is <1yr.

no free lunch. otherwise the whole world would have been borrowing JPY and lending some exotic currency.
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Offline petetherock

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Re: Where should you park your money right now?
« Reply #12 on: October 13, 2008, 12:17 »
Property?
Try Aussie ones, Perth for example.
With their low dollar, this is a good time
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Offline camark81

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Re: Where should you park your money right now?
« Reply #13 on: October 13, 2008, 12:23 »
may be a good time for cash rich ppl to spend now.

Offline silencer13

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Re: Where should you park your money right now?
« Reply #14 on: October 13, 2008, 12:50 »
talking about foreign $$$ fixed deposit. papers was saying that the aussie $$$ have dropped from about $1.3 to less than $1.
this means that it has dropped 30%. so for those ppl that put assie $$$ as fixed deposit in the hope of getting 5% interest rate, they would have lost more than 25% + whatever exchange rate the bank is charging....
am i correct on the above point?

Yes, that's why I'm recommending A$ now, and not 1 year ago. If you put in now and the levels go back to 1 year ago's levels, you would have gained 30% + 5% interest = 35% gains. Even better than high-risk mutual funds.

Of course, there are always 2 sides to a coin. You could always say it would drop further.... that's why there's never a sure thing in investment. If there were, we'd all be millionaires.