Monday, September 14, 2015

GE2015 How We Can Apply To Portfolio Management

Finally, Singapore decides who they want to lead them for the next five years. The past 2 weeks are dramatic with rallies by opposition parties and ruling party. I managed to attend a rally by WP and PAP and looking at the large turnout of the WP rally. It is scary. The crowd is like going to a soccer match with many people from different generation and background. Especially the WP rally, you can hear people cheering and shouting. It can be very entertaining when the WP speaker talk about the people's usual problem such as CPF, jobs taken up by foreigners, etc.

Chee Soon Juan from SDP also improved alot this GE2015, he's not so aggressive and more reasonable. No shouting at Mr Goh like during the last election. He also played the empathy card by telling people about his humble life via social media. He also showcased his family, especially his daughters in the politics during his rally speeches. Something I feel he should not involve them.

For a moment, I thought PAP would have a hard time defending their grounds.

When the result is out, I was kinda relieved. I know that some of my friends want some opposition party to be in the Parliament not because they are good but they just want them to be in so that they will watch over PAP. This is a very scary thought. What happens if majority thinks like that and start voting for opposition not based on merits but purely this reason? What will happen to Singapore? Are the opposition party ready to be the ruling party and lead Singapore?

I am relieved that despite all the ra-ra from opposition parties, majority of Singaporeans still choose PAP as it is stable and reliable, a proven working ruling party, status quo.

I think it apply to our portfolio management too. We need it to be a stable and reliable cruise ship sailing towards our destination. Our portfolio should not be exciting and entertaining with high beta stocks making high swings in the the price. We need it to be a stable business and consistently gives dividends.

So choose wisely how you want to build up your stock portfolio.

Do you want it to be exciting like gambling ? or stable like a business?

6 comments:

  1. Imagine WP Chairman becoming Finance Minister. LOL!

    ReplyDelete
    Replies
    1. not everyone can manage finance
      maybe should get one of our star financial blogger as advisor :)

      Delete
  2. Less we forget there are "turbulences" in our beloved Singapore in recent years.
    The too rapid population explosion - causing housing shortage and MRT breakdown.
    Hospital overcrowded.
    Jobs loss to FTs.
    Etc......
    That's why we have only 60% for PAP in 2011.

    Only recently PAP is willing to spend some of our money on us especially the PIONEER GENERATION.
    You can call this "portfolio pruning" by the PAPY.
    Or, reconditioning the mindsets of the people, in POLITICS.

    One thing i agree quite strongly, Singapore has not a convincing, viable opposition party, ready to form the next or at least 1/3 of G even in 10 to 15 years time.
    There are just too many people wanted to be an INDIAN CHIEF to lead their own party.
    It has been like this for so many elections already.
    That just suits the PAP to a T.
    Ha! Ha!
    Very sad, i may not live to see a real Democratic Parliament.
    Until it happens, nobody will know it is better or not.

    ReplyDelete
    Replies
    1. the ruling party PAP has been there so many years recruiting all the scholars under its umbrella for them to cherry pick when they are ready. opp parties have to pick up the rejected or leftover, so not much talents to speak off.

      also joining PAP is a safer and sensible choice because they are the ruling party and chances of you getting elected as MPs and prospering are higher. i used the word 'prospering' is a hard fact. pls dont tell me they only want to serve the people and country. they joined the politics because they also want power and prestige and of course remuneration :)

      Delete
    2. There is some truth in what you say for some of the people who want to be politicians - PAP, WP or XYZ .

      If scholars are best for the G, then most of them should not be in the G but in the stock markets. Being scholars, they definitely know the market can even give them more wealth. And maybe more "power"
      Then why highly IQs still want to be in the G?

      Because, some GURUs prove that it's not so.
      Any average IQs people can think too.
      Though they may not know calculus, but still deserve their places in the SUN.

      People who are highly IQ, why be politicians, doctors, lawyers.
      They should be in the market.
      They not only can control the market, they can control the world too.
      POLITICS IS ECONOMICS
      Whoever control the world's ECONOMICS, control the world.
      (i think U S A has been before globalisation of the world's Economics)
      So is the same with Singapore's Economics.
      Whoever control Singapore Economics control Singapore.
      In Singapore because we are a little RED DOT, it's just too obvious; the G controls almost every aspects of ECONOMICS.
      With that of course, all aspects of our lives.
      Majulah Singapore!

      But they are some people i believe, just too happy to let other people decide everything for them.
      These people should be in ETFs or Index Funds if they still want to be in the market.
      But then not all ETFs and Index funds are the same.
      i think our G is like ETFs or Indexs fund for some people.
      YMMV.



      My 2 cents is definitely different from your 3 cents.

      Delete
    3. who can control mr market?
      even china pumping of billion of yuan cannot help but watch their stock market drop

      etf got expense ratio, not free 1
      need to pay them to manage the fund for you

      want to do something best? do it yourself

      Delete