Investing and speculating

The Sunday Times carried a story about young people who were investing in stocks and CFD (contract for differences). Some made trading losses but are still keen to continue "investing" in the market.

It is important to use the correct term to describe the activity. It should be called "trading" or "speculating" and not "investing".

When one "invest" in a company, one has to study the fundamentals of the company with the intention of holding it for many years to earn its dividend and the long term capital gain. I  know of people who bought blue chip shares and kept them for 40 years. That is "investing".

Those who buy and sell shares to make a short term gain should be called "speculators" or "traders" and not "investors". There is nothing wrong with speculating or trading in shares, or gambling in the casino, if the speculator is aware about the risk and is mentally prepared for the consequence of making a loss, while pursuing a gain. It would be wrong to be deluding that they are "investing" in the stock market.

I hope that our financial journalists will use the correct term to describe the activity, so that the speculators are not deluded into thinking that they are carrying out an "investing" activity.

Capitalism is in crisis

Many people still think that capitalism is a good economic model. The truth is - it is the cause of many of the bad things that are happening around the world - greed, cheating, high cost of living, stress, low birth rate, crime. Read this article to get a similar view:

http://english.aljazeera.net/indepth/opinion/2011/11/201111191022862285.html

QUOTE:

The economic system underlying empire-building today has a name: capitalism. Or, more precisely, a predatory corporate capitalism that is inconsistent with basic human values. This description sounds odd in the US, where so many assume that capitalism is not simply the best among competing economic systems but the only sane and rational way to organise an economy in the contemporary world.
Although the financial crisis that began in 2008 has scared many people, it has not always led to questioning the nature of the system.

"Although the financial crisis ... scared many people, it has not always led to questioning the nature of the system."

That means that the first task is to define capitalism. It is an economic system in which:

• Property, including capital assets, is owned and controlled by private persons;

• Most people must rent their labour power for money wages to survive; and

• The prices of most goods and services are allocated by markets.

"Industrial capitalism", made possible by sweeping technological changes and imperial concentrations of capital, was marked by the development of the factory system and greater labour specialisation. The term "finance capitalism" is often used to mark a shift to a system in which the accumulation of profits in a financial system becomes dominant over the production processes.
Today in the United States, most people understand capitalism in the context of mass consumption - access to unprecedented levels of goods and services. In such a world, everything and everyone is a commodity in the market.
In the dominant ideology of market fundamentalism, it's assumed that the most extensive use of markets possible, along with privatisation of many publicly owned assets and the shrinking of public services, will unleash maximal competition and result in the greatest good - and all this is inherently just, no matter what the results.
If such a system creates a world in which most people live in poverty, that is taken not as evidence of a problem with market fundamentalism but evidence that fundamentalist principles have not been imposed with sufficient vigour; it is an article of faith that the "invisible hand" of the market always provides the preferred result, no matter how awful the consequences may be for real people.
How to critique capitalism in such a society? We can start by pointing out that capitalism is fundamentally inhuman, anti-democratic and unsustainable:

Calculation of interest rate

Courts advertised a 42" HD LED TV for a cash price of $799 and gives an option to pay in weekly installments of $7.91 over 48 months. What rate of interest is included in this plan? Do you calculation and check your answer here. http://tankinlian.com/Redirect.aspx?PK=a2b03a8458f4102f8aebde1ae83d78a1

Interest rate on installment payments

This article shows how to calculate the interest rate on installment payments, and how to save on the heavy interest charges. It is advisable for those who buy expensive items on installment payments, especially young people, to realize the heavy cost of this payment plan. The interest rate has increased from 36% previously to 48% per annum now. It is quite expensive!


http://tankinlian.com/admin/file.aspx?id=592&PK=0e53cd3c5970102f8aebde1ae83d78a1

Unemployment benefit in USA

This article gives a good explanation of the system of unemployment benefits in the USA. The benefit is given for a short period, to help the unemployed people to tide over a short period so that they can find the next job. This usually works well, except in a prolonged recession (which is happening now). Apart from helping to relieve hardship, the unemployment benefits help to spur economic growth. The question that the USA has to face is how to cope with the prolonged recession. President Obama wants to extend the unemployment benefit, but needs Congress to approve the additional funding (as the US debt is already too high!).

http://www.cnbc.com//id/45174237

I vow to thee my country

A stirring and patriotic song.
http://www.youtube.com/watch?v=aaYsapDNrFw&feature=related
http://www.youtube.com/watch?v=KHh8isGtB6w&feature=related

Here is a version with spoken words

http://www.youtube.com/watch?v=HMNlnryrVtc

Lyrics and history
http://tankinlian.com/admin/file.aspx?id=585

Negative comments about Forex Schools

Dear Mr. Tan,
There are many negative comments about various Forex schools in Singapore. Some could be fake, some could be real. Whatever it is, government won't do anything base on rumours I suppose, unless many students lodge complaints like Clement Chiang's case.

But I believe something can be done:
1. Stop all the schools who claim themselves to be number 1, especially in their official website. Example of such schools are JF Lennon and Powerup Capital. How do they even gauge themselves to be number 1? It is dangerous for the public.

2. Warn Powerup Capital to remove their 100% accuracy claim in their website as there is no such thing as 100% in financial market isn't it?

3. Forex trainers to undergo exams and certify to teach. A person who prescribe medicine without being a certified doctor could be dangerous.

4. Forex trainers to produce their own live trading results for a period of time before getting the certificate as well.

5. Probably all the students who sign up for any course, are needed to send feedback to the MAS or whoever just after the course, being reminded by the trainers. One of the questionnaires could be "Did the trainer state all the possible risk". Probably the second feedback is needed after some time as well because students need to try out the things taught for a period of time.

6. If the trainer tells the audience that his student make $10,000 from $2000 after 3 months for example, then he should get a print screen of the real live statement. The name of the student should be there. The account number can be blackened. So as not to have empty talk and cheat the people. They must also claim that not all students could get this result.

I am sharing these because you may have the influence or power to help eliminate any possible bad practices.


Please read the comments posted here:
http://www.forexdna.com/education_revInfo.php?id=44

Bhutan teacher reply to Singapore Minister

This article is being circulated by e-mail and purported to be written by a Bhutan teacher in reply to remarks by Minister Khaw Boon Wan.

http://www.tankinlian.com/Redirect.aspx?PK=bd767f8d58f6102f8aebde1ae83d78a1 

Legal action on Pinnacle Notes

The US lawyer has crossed one major hurdle in getting the legal action on the Pinnacle Notes being heard in the court in New York. Here is an explanation about the legal action and the time expected for the case to be settled.  http://www.tankinlian.com/Admin/NewInformation.aspx?pk=a2b03a8458f4102f8aebde1ae83d78a1 

Discrimination against Singaporeans

Dear Sir,
Kindly see the these links and read the content.
http://theonlinecitizen.com/2011/11/system-makes-it-easy-to-hire-foreigners-at-expense-of-locals/
http://sg.news.yahoo.com/don-t-hire--promote-at-expense-of-s-poreans--govt-to-foreign-managers.html


I think the MOM is not doing enough and I believe this time round many PMETs are waiting for someone to come out and help speak for us. Perhaps we need to bring out to the open those Foul Practises and FT HRs that are doing these bad things to Singaporean.

REPLY

Please approach Gibert Goh who is organising this effort through his website: http://www.transitioning.org/.

More importantly, you should round up many people to support Gilbert Goh'S efforts, as he needs funding, resources and other kinds of help.

Bhutan and Singapore

Here is how Quitter (Wing Lee) view this matter:
https://mail.google.com/mail/?ui=2&ik=f1f8b591ea&view=att&th=1336e65f1600b0fd&attid=0.1&disp=inline&realattid=f_gul47b4x0&zw

My observation.
When the beloved King of Bhutan recently married, the whole country rejoiced. Singapore should learn from Bhutan, rather than pass negative comments about Bhutan. Read this article and see the 1,000 over comments.
http://news.yahoo.com/king-bhutan-marries-commoner-bride-040837856.html

Life insurance and financial planning for a young family

I wish to share this important tips for every young family, and for young people who will be started a family a few years later. It can make a lot of difference to your financial well being - more important than the time that you spend to learn the subjects to get a degree.


http://tankinlian.com/admin/file.aspx?id=589&PK=5992645d58d5102f8aebde1ae83d78a1