Frank Comments by Dennis Ng on various Topics

[Dennis Ng]

Dont blink, Financial Armageddon Is almost here...2011

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

risk of Hyperinflation...

http://www.youtube.com/watch?v=IMBgCl-khp8&NR=1
As I have mentioned many times, the next Global Financial Crisis would be worse than the last one in year 2008...it'll be more prolonged and steep...and actually, the NEXT Global Financial Crisis might have already started...just that things are still NOT too bad now that few would notice its arrival...


But warning signals that all is NOT well include major countries reporting slower economic growth, stock markets falling by close to 20%, Gold prices going up by US$400 in 2 months to US$1,900 (now correcting back to possibly US$1,700)...

What assets would do well in a Stagflation?

Real Assets...including Gold/Silver/Oil..anything Real...becos the Value of each dollar goes down, so the prices of Real Assets go up. This is taught in my Stock Seminar, please refer to the seminar notes. My Seminars are the ONLY ones that teach people what to do in the Next Global Financial Crisis.

So how will property as a real asset fair if the economy is in such depressed state ?

depends, if inflation is higher than weak economic growth, property prices might hold steady or even rise. This is why I own 1 investment property currently (just 12% of my wealth though). I own 7% silver and 2% in Gold. I also have 7% invested into UK Endowment which provides 90% Capital Guarantee even in the worst case scenario of the collapse of UK Insurers in a Crisis. I currently also have 52% in Cash (standby to bargain hunt after stock prices Crash) and 13% in Stocks as well.

Real Investors always factor in possibility that we may be wrong, and we plan our Investment Portfolio accordingly. My investment portfolio is planned in such a way that it is ALL Weather Proof, that I'll be financially ok whether it's inflation, stagflation, recession or depression.

Is your Investment Portfolio ALL Weather Proof? If you want to find out more about UK Endowment, you can email to info@tradedendowment.com or call us at 6883 2235.

Cheers!

Dennis Ng

9 Aug 2011

the next Global Financial Crisis is likely to be worse and more severe than the previous one in year 2008, why?

1. in last round of Crisis, governments throughout the world came to the rescue by borrowing money and printed money. The problem is right now many countries have already borrowed quite a lot of money and there is limited room to borrow much more money to "rescue" the world in the next Crisis.

2. in last round of Crisis, governments throughout the world lowered interest rates to stimulate their respective economies. The problem in the next Crisis is that we'll have the Problem of Inflation...high inflation makes it difficult for countries to lower interest rates, as low interest rates will worsen inflation rates...U.S. current inflation rate is 3.6%, higher than its average about 2% in the last 20 years...China's inflation rate is already 6.5%, and Singapore inflation rate is 5.2%, it is possible for U.S. inflation rate to go up to 5%...and when that happens, it is likely for the 10 year US government bond yield to spike up from current LOWEST level in history, yield of about 2.4% (or HIGHEST Bond Prices in history), to abotu 5%, and that might mean U.S. government bonds falling by over 50%!!! (a Bond Market Crash which didn't occur in the last Crisis.

3. Rising inflation and rising unemployment and austerity measures (ie. cut in social benefits) will lead to many, many more countries having Social Unrest, many more governments throughout the world are likely to be overthrown...

4. when money stops to flow on the streets, blood will flow on the streets...this is scary...

5. and throughout history, if we observe, when there are prolonged period of economic weakness, it typically will trigger and followed by a War. The early 1900s recession was ended by the World War 1....the Global Depression which started in 1929...was finally ended with the beginning of World War 2 in 1938...so if history is any guide, we may see the tigger of a World War 3 should the next Global Financial Crisis resulted in prolonged economic slump...the next economic slump is likely to be longer and more severe due to reasons 1 to 4 as stated above...

I really do NOT wish such events will happen, but this is my latest view on what might happen in the next few years...I really hope I'm wrong, but I think what I analysed seems quite logical...

12 Aug 2011
people will lose confidence in many currencies around the world in the next Crisis.

The 5 fundamentally strongest currency in the world are: China Renminbi, Switzerland Swiss Franc, Canadian Dollars, Australian Dollars and Singapore Dollars.

(Canada and Australia are commodity backed currency) while other 3 countries are backed by foreign reserves.

Good news is Hot money might flow to Singapore in the next Crisis becos of our safe haven status.

[Jasper]

On Tuesday 23 August 2011, 10:03 SGT (Yahoo news)

SINGAPORE, Aug 23 (Reuters) - More than half of the commercial payments made by Singapore companies were late in the second quarter of this year, adding to concerns that the economy may be falling back into recession, the Straits Times newspaper reported on Tuesday.

The paper cited a report by the Singapore Commercial Credit Bureau that 53.1 percent of all payments were late in the three months to June 30, up from 42.5 percent in the previous quarter.

Less than 40 percent of transactions were paid for promptly, the lowest level since the agency introduced the report in 2007. The report describes prompt payment as when at least 90 percent of all bills are paid within the payment period.

The construction sector has the worst record with 65 percent of transactions being classified as late, followed by the retail sector with a 62 percent late payment rate.

The city state's economy contracted 6.5 percent in the second quarter on a seasonally adjusted and annualised basis, while the government has narrowed the growth forecast for 2011 to 5-6 percent compared to an earlier estimates of 5-7 percent. (Reporting by Harry Suhartono; Editing by Kim Coghill)

[Dennis Ng]

What is Wealth?

What is Money?

Is Money Wealth? Does Money Equate to Wealth?

Few people ever think of such questions. Have you?

I want you to think of these questions and share with me your answer.

I will NOT be surprised that some of you would say that Wealth is Assets, or Health is Wealth. Sorry, I think you are confused. They are NOT.

Money is just an agreed Medium of Exchange for Goods and Services. It is NOT wealth itself.

Throughout history, many things had been used as money, Sea shells, Gold, Silver, Paper Money. If you really think about it, Money is NOT wealth, it is just a medium of exchange.

Thus, Money by itself has NO value, it is what we agreed as Value that gives Money Value. Gold is just a metal. How much this Metal is worth, depends on the value we attach to this Metal, that's all, in comparison to say, Silver. So Gold can be used as Money, but Gold is NOT Wealth.

Many people chase after money. This is because they confuse that Money is Wealth.

Now if you know that Money is just Medium of Exchange of Value and is NOT Wealth you would probably realise that why many people chase after money but they are NOT Rich.

Because Money is NOT Wealth!

So what is Wealth?

If you really think about it, it is the actual Provision of Goods and Services that is Wealth. For instance, if you drink milk, the milk is the product and is the actual Wealth. The money you pay for the Milk is just an agreed Value for Milk, that’s all.

I hope by reading up to now, you’re getting clearer about Wealth and Money, not getting more confused.

So what’s the formula for Wealth? Goods and services have to be provided and NEEDED and/or WANTED by PEOPLE to be of Value.

So what determines the Value of Goods and Services? It is the Perceived Value Add a Good or Service has.

Why Perceived Value? Because Value lies in the eye of the Beholder. To someone, a bag with the 2 letters LV is probably worth (perceived to be valued) for S$2,000 or more. So if someone offers you a LV Bag for say, S$1,000, to you, this may be a Good Bargain and you would gladly rush to exchange your S$1,000 for a Bag you perceived to be valued at least S$2,000.

Hope you’re getting clearer now about how it is really the PERCEIVED Value that is really important, since Value is a subjective thing.

So part of the Formula of Wealth is Perceived Value.

Just now we mentioned that Goods and Services have to be Needed and Wanted by people to be of value. A Dog cannot pay for Dog food, it is the Dog Owner (human being) that can pay for Dog Food. So another part of the Formula of Wealth is People.

Obviously, the MORE People who Need or Want something, means more Customers.

So by now we can deduce that Wealth is NOT Money. Money is just an agreed Medium of Exchange of Value.

Wealth is linked to the Number of People and the Amount of Perceived Value. So by combining the 2, we can deduce that the Formula for Wealth to be equal to the Number of People we serve (customers) x Amount of Perceived Value.

For instance, if you serve 1 million people, but the Perceived Value is say, S$1, you may be able to charge S$0.50 for providing this service or product, so your Wealth would equal 1 million x S$0.50 (Price of product/service), or S$500,000.

If you want to be Wealthier, simple, you can
1. Increase the number of people you serve, say to 2 million people, instead of 1 million people.

2. Increase the Value Add, instead of S$1, say double to S$2, then you can double your price to S$1.

So now you will earn 2 million x S$1 or S$2 million a year.

Please take note that for you to have Repeated customers. or to have More Customers (many customers probably come to you by word of mouth), the Price you charge must be Less than the Perceived Value you provide. Otherwise, you’re just CONNING people money.

So do you want Wealth?

Simple, just follow the Formula for Wealth. Do NOT focus on chasing money. Focus on increasing the Number of People you Serve and Focus on Increasing the Perceived Value you provide.

Remember Perceived Value is the Value perceived by the People you Serve (customers), and NOT by you.

That’s why there are a lot of so-called Talented but unhappy people. They think they are very talented and provide lots of Value, but they did NOT realise that it is they themselves Perceive they Provide Lots of Value.

The people they serve (customers) do NOT share the same view and think they provide little Value. That’s why these so-called “Talented People” remained Poor.

For some, what I have just written and what you’ve just Read will be the “aha” moment in your life.

That for the very first time, you finally know the difference between Wealth and Money and the Secrets to Wealth.

I would say that if anyone follow the Formula for Wealth, the person is Guaranteed to become Wealthier and Wealthier. And if you’re NOW earning a Low Income if you really analyse the reason WHY is because you Serve very few people and provide very Low Perceived Value Add.

Do NOT get offended by my words.

Read and re-read this article and you would realise that I’m just speaking the Truth, and NOTHING but the Whole Truth.

I realised that I’ve been given a Gift.

The Gift to understand all these Truths and the ability to share the Knowledge, or I would rather say, Wisdom, in a way that the average person can understand.

And I know that you’re NOT alone. Probably 90% of the World does NOT know the Formula for Wealth and are thus erroneously chasing after Money and wonder why they are NOT Wealthy.

Don’t bother chasing after money, because nobody will give you any money. But people will gladly pay you S$2,198 or even bigger amount if the Perceived Value of what they learn from you is more than this amount. And if you collect S$2,198 from someone and provide Value Add of S$10,000 or more to people that you’re actually Contributing to the Society. And many more people will be willing to pay you S$2,198 or more for your Product or Service.

Do you realise that if everyone in the world do NOT chase after money, but instead FOCUS on Serving More People, and Increasing Value Add to people, that the World will be a Better Place to Live in, and EVERYONE will be Wealthier in the Process?

Think about it.

Wealth is Abundance. The More Value you Give, the More People You Give to (Serve), the Wealthier you’ll become, and so will the Society benefit and become Wealthier as well.

Once you know this Truth, you will NOT be Selfish anymore (think of your own self-interest), but instead think of how to Increase Value Add to others, and How to Serve More People.

Give and You Shall Receive. Do NOT withhold from Giving, unless you want to receive little or NOTHING.

You will NOT be thinking of Competing, and Think Win/Lose because you know that Wealth is Abundance and it is possible for everyone to become Wealthier than they are currently (when they are ignorant about Formula for Wealth). You will be Thinking Win/Win. You’ll probably be like me, try to share with more people your Knowledge/Wisdom and Gifts.

You have NOT joined a Seminar. You have Joined a Revolution of Wealth.

With the NEXT Global Financial Crisis already started without most people noticing, it is important that we start spreading this knowledge/wisdom to as many people as we can, so that everyone will NOT become Poor in the Crisis (losing Money), but may actually become Wealthier through the Crisis (Increasing Wealth – serving more people, increasing Value Add).

Yours sincerely,

Dennis Ng

Sharing my Financial Enlightenment with you.

[Dennis Ng]

Please read and re-read what I wrote on 30 May 2011, "The Whole World is Heading Towards a Perfect Storm".

Cheers!

Dennis Ng

30 May 2011

I beg to differ, it's NOT Singapore Property Market heading towards a Perfect Storm.

It is The Whole World is moving towards a Perfect Storm.

If anyone thinks that Year 2008 Global Financial Crisis is bad, the NEXT one coming soon in late 2011 or year 2012 is likely to be worse! Why?

In the last Crisis, companies and individuals over-borrowed and got into trouble. The Governments around the world, including U.S., Europe and many, many countries "step up" to Borrow money to pump money into the global economies...

In U.S. this is known as the QE1 (first round printing of total US$2 trillion) and QE2 (just about to end in Jun 2011, printing of total of US$600 billion.

The problem NOW is most governments around the World have already Borrowed to the MAX, eg. U.S. is nearing its Total Debt Limit!

The question is when the next Financial Storm hit us, what can the governments do? QE 3, QE 4, QE 5? The problem is when U.S. is forced to do this and which in Oct 2010 I already wrote in article published in My Paper on 6 Oct 2010 that QE 2 will fail and there will need to be QE 3, but the problem is when QE 2 fails and when U.S. go for QE 3, Market Confidence will Crash, and when confidence crash, Markets will Crash...brace yourself for the coming Global Financial Storm...

The problem is up UNTIL now, the Mass Media and the General Public are totally unaware and unprepared for this up-coming Global Financial Perfect Storm...

This time round, things will be even more complicated becos it is coupled with High Inflation...and to combat High Inflation, interest rates need to be Raised, NOT lowered....

The problem is Americans already cannot coup with interest rates at historical low, when interest rates spike up, many, many more people will NOT be able to Meet their Mortgage Payments (Housing Loan instalments) and their homes will be foreclosed...

So people thinking of buying U.S. properties NOW better think twice.

I hope my warnings will save some people.

When the whole world loses confidence in currencies, including US$, Gold and Silver prices are likely to spike up...do NOT be surprised to see Gold prices above US$2,000, Silver prices above US$70 or higher in such a Perfect Storm Scenario.

[Dennis Ng]

Please read and re-read another posting I wrote on 30 May 2011 on "possible signals that Singapore Property Market has peaked or near peak..."

Be Fearful when Others are Greedy. Remembering these words have served me well so far and helped me avoided the last Global Financial Crisis in year 2008.

Cheers!

Dennis Ng

30 May 2011

I'll share another sign of a Possible Peak in Property Market...

this is when more and more people start to think "Singapore property prices can only go up"...

In 1980s....there's one group chanting this...it's called the Japanese, before the bursting of the Japanese Asset Bubble in 1989...

In 2000s....there's another group chanting this...it's called the Americans, before the bursting of the Sub-prime Loan and Property Bubble in year 2007...

In year 2011...now there's another group chanting this...it's called the Chinese in China...before the bursting of the Shanghai and Beijing real estate bubble in year 2012...

I seem to hear more and more Singaporeans chanting this as well...

They seem to ignore some facts:
1. over 50,000 New condos to be completed in year 2012, 2013 and 2014...while average demand for condos in Singapore is about 8,000 to 10,000 units. Last year's Highest Record in History is 15,000+.

2. Khaw Boon Wan who just took over as Minister of National Development is going to increase supply of New HDB flats in year 2011 from (what Mah announced 22,000) to 25,000...and vow to build even more in the next few years...

3. Khaw announced he may build another 25,000 HDB flats for rental...

So supply is coming on stream in the next few years...if the increase in Supply coincide with a Global Financial Crisis and the resulting drop in demand, what is likely to happen to prices?

What more, if interest rates in U.S. spike up due to Crash of U.S. government bond markets, then interest rates in Singapore also likely to go up, and Rental rates likely to drop with more supply...What is likely to happen to prices?

Investing is NOT gambling, it is about taking calculated risks, it is about taking action (investing) only when the Risk/Reward tradeoff is in our favour, when Upside potential is at least double that of Downside risks...it's certainly not playing poker (as according to Sunday Times' Deputy Editor, Dennis Chan).

[Noodles]

Hi Dennis,

I share the belief that interest rates will go up. Currently, I'm servicing the early months of a 2-year fixed rate property loan. Would I be able to extend it now? Well, it actually sounds unlikely. If so, what can I do now to avoid paying a higher interest rate when the market crashes?

Thank you.

[Dennis Ng]

No one controls the market, I don't, neither can Ben Bernanke...Real Investors are always prepared to be wrong.

Real Investors do NOT have the illusion of Control...we know we don't control the markets, in fact, we plan ourselves in such a way that we'll be Okay no matter what happens in the markets, this is what I teach, and I'll be very disappointed if Seminar Graduates are NOT learning and applying what I teach.

There is NO such thing as Good News or Bad News, there is only News. Real Investors are NOT fixated on a certain view, we are flexible enough and humble enough to know that we might be wrong and always financially prepare ourselves to be wrong.

Please watch and re-watch part of the Kung Fu Panda Movie below.

Cheers!

Dennis Ng

It is simply amazing how much Wisdom one can learn from a "Cartoon Movie" - Kung Fu Panda.

Just in case you missed the movie, here's the part when he delivered his Final lessons to his leading disciple for the last time just before he dies...

Master Oogway said:"There is Just news, there's No good news or bad."

Master Oogway or Uguay said in the Movie "Kung Fu Panda 1": there are NO accidents. Just in case you missed the movie, here's the part when he delivered this lesson to his leading disciple just before he dies...

Master Oogway also says "you need to let go the illustion of control."....

How? How? His disciple asked. Master Oogway says, you don't need to know how, you just need to believe...

You just need to believe and you will achieve. Promise me you will believe. You must Believe..

Watch and re-watch this. You might thank me for sharing this. There are no accidents, including why you attended my Seminars or why I appeared in your life.

http://www.youtube.com/watch?v=x_6g4s9D ... re=related

[Dennis Ng]

Hi Dennis,

I share the belief that interest rates will go up. Currently, I'm servicing the early months of a 2-year fixed rate property loan. Would I be able to extend it now? Well, it actually sounds unlikely. If so, what can I do now to avoid paying a higher interest rate when the market crashes?

Thank you.

the answer is you cannot, there is penalty period involved.

I'll say watch how things develop in the next few months, interest rates likely to stay low for the next 6 months or so...but might increase when Inflation rate in U.S. increases...(a likely scenario in my opinion becos of the Devaluation of the US Dollar).

[Dennis Ng]

10 Life Lessons from Virgin Group founder, Richard Branson

"Ridiculous yachts and private planes and big limousines won't make people enjoy life more."

"I enjoy every single minute of my life."

"But the majority of things that one could get stressed about, they’re not worth getting stressed about."

"You can’t be a good leader unless you generally like people. That is how you bring out the best in them."

"There is no one to follow, there is nothing to copy."

"I can honestly say that I have never gone into any business purely to make money. If that is the sole motive, then I believe you are better off doing nothing."

"I never had any intention of being an entrepreneur."

"I made and learned from lots of mistakes."

"If you can indulge in your passion, life will be far more interesting than if you're just working."

"Right now I'm just delighted to be alive and to have had a nice long bath."

But the sad truth is MOST went into business with the ultimate hidden agenda IS to make money (nothing wrong) but they always have a well-rehearsed model answer why they are NOT

They like to brag... & one of their familiar phase is that "this is NOT to impress you but to impress upon you the need to..."


woonty

Hi woonty,
I know that there are indeed people who do not mean what they say. In fact, there are many.

Actually, if we look at people's actions, we can actually know and tell whether the person really mean what he/she says. Finally, if one is a very good "actor", one can bluff the whole world but cannot bluff himself/herself. And if a person tries to bluff himself/herself, that is very sad.

I just want to share that there are indeed people who go into business not for money. I'm one of the real life examples. And I know of other real life examples too.

And if you know the Formula for Wealth, you know that one does NOT need to chase after money, one will get Richer and Richer just by focusing on:

1. serving more people
2. increasing value add to others.

Do NOT lose hope in human kind just becos of some rotten apples. I know that there are actually more and more rotten apples. Which makes it even more important that we do not become one ourselves. We cannot change what others think or do, but we can change our own thoughts and actions.

I believe that humans are born kind and truthful. 人之初，性本善

People who become Evil have gone on to the wrong path. It is up to us, to help people on wrong path, to go back to the Right path. And if we cannot, we just Teach by being a Living Example. 言教不如身教 , 那是现身说法

We can change the world, starting by changing ourselves.

If it is to be, it is up to me. (Always remind yourself that.)

We can be the force for Good, or we can be the force for Evil, ultimately, we need to make a Choice and take a stand.

I increasingly believe that the world is in such a mess right now, becos Greed has blinded most people...it is up to some of us to Awake and make a difference, first by changing ourselves, and next by influencing and changing our relatives and friends.

We can win this battle (of good vs evil, which includes Greed) if we Believe we can. We don't even need to know How. The How will be revealed to us, by the universe.

This forum itself shows that selflessness exist, that kindness exist, that the spirit of helping one another exist. ALL seminar graduates can be the Force for Good, and we are increasing in numbers every month. I have alot of confidence, especially when I read true story such as the 300 Spartans who can defeat a Persian army many times their numbers...

Similarly, over 2,200 seminar graduates is not small a number, do NOT under-estimate what ALL of us Uniting together, can achieve.

[Dennis Ng]

I would do whatever I can to try to educate the public on Financial Matters, including sharing on this forum, on my facebook page, on TV, Radio and Newspapers, and conducting numerous talks over the last 11 years.

I was pleasantly surprised when I received an email invitation from Grace Tan, who set up a Blog http://workingwithgrace.wordpress.com , which interview individuals who are inspiring or who make a difference in the lives of others.

Meeting and chatting with Grace, I find that she is really as graceful as her name.

She shared with me excitedly with a wide smile and sparkle in her eyes about community work she is involved with...I'm truly inspired by her initiative and zest for life and her efforts to contribute to the society.

I enjoy visiting her blog to read the interviews she did with various people and learning from the interviewees featured on her blog. http://workingwithgrace.wordpress.com

Here's the interview with me, which she just uploaded to her blog today:

http://workingwithgrace.wordpress.com/2 ... nance-com/

[Dennis Ng]

the world is full of Go-getters, people who are out there to get what they want.

Let's aim to live as Real Life Examples of Go-Givers, where we let the world know that Give and you shall receive.

If everyone in the world lives life on this principle, the world will definitely be a better place.

Let's each do our part, everyone has a role to play, to be Go-Givers. http://www.thegogiver.com/

[Dennis Ng]

Hi yhendra,

thanks. I didn't know the feature by yahoo news of my posting in this forum.

Guess yahoonews picked up this article from www.propwise.sg, who asked my permission to share this posting on his website.

Mr Propwise, founder of http://www.propwise.sg , is also the Publisher of a few books, which include the "Diary of a Taxi Driver" (Author is Cai Mingjie, PHD) and also Secrets of Singapore Property Gurus (the only book that features sharing by 12 property experts, including myself).

Mr Propwise actually works as a fund manager and is based in China, he started a Publishing Company and publishing books as an interest to share Topics he find interesting but may NOT be covered by other Publishers in Singapore. He is in his early thirties and is a very knowledgeable and humble guy, who also believes in making a difference to the society, in his own way.

Give and You Shall Receive, once again this is proven.

The world is full of Go-getters, people who are out there to get what they want. Let's aim to live as Real Life Examples of Go-Givers, where we let the world know that Give and you shall receive. If everyone in the world lives life on this principle, the world will definitely be a better place. Let's each do our part, everyone has a role to play, to be Go-Givers.

Cheers!

Dennis Ng

Hi,

I found Dennis' article on "What new HDB rules mean for the property market"
in Yahoo news http://sg.news.yahoo.com/blogs/property ... 35605.html
-------------------
What new HDB rules mean for the property market

By Dennis Ng

The news that the income ceiling to qualify for an HDB flat was being raised had been expected, but it will still have an impact on the property market.
Here's what may happen now that sellers and buyers may be more active as the Ghost month comes to a close:

1. Demand for DBSS (Design, Build and Sell Scheme) flats might drop. DBSS flats were previously for those whose income exceeded S$8,000 but are below S$10,000. There is no longer this sandwiched class in the new ruling.
People earning S$8,000 to S$10,000 can now either buy new HDB flats or resale HDB flats and be entitled to a Housing Grant.

2. Demand for 3-room resale HDB flats will go up. Many more singles will be given the housing grant to buy a resale flat and many of them are likely to rush out to buy 3-room resale HDB flats.

3. Some of the demand for mass-market condos, especially those priced between S$1,000 psf to S$1,300 psf will drop, as part of the demand will
shift to ECs and HDB Resale Flats.

4. With more higher income families (those earning above S$8,000 to S$10,000) qualifying to get the grant for HDB Resale flats, this might push up demand for HDB Resale flats and there might be upward pressure on COVs (Cash Over Valuation).

My outlook for property prices

All in all, I do not see the possibility of Singapore property prices falling much in the next six to 12 months as we still have a tight supply situation within this period. Most of the 25,000 new HDB flats announced by Minister Khaw Boon Wan to be built in year 2011 would probably only be completed in year 2013 at the earliest.
Next year, Minister Khaw again promised to build another 25,000 new HDB flats. So I worry that there might be an over-supply of new HDB flats in year 2013 and year 2014, especially if it coincides with a slowdown in the Singapore economy. By 2013 we might be in the midst of a global financial crisis.
Year 2013 and year 2014 will also see over 30,000 units of new condos being completed, so there might be an over-supply situation in condos during the same time period as well.
--------- end of article

[Dennis Ng]

In the original 1987 "Wall Street" Movie, Actor Michael Douglas, in his role as Gordon Gekko, gave a speech and said that "Greed is Good".

In the sequel released in year 2010, reprising the role of Gordon Gekko, he now says "Greed is Legal."

Why is the world in such a Mess? What is the Root Cause of the Global Financial Crisis in year 2008? It is Greed.

The NEXT Global Financial Crisis in my opinion has already started, just that most people have NOT noticed it yet...why are we going into another Financial Crisis so soon after the last one in year 2008? Because the World has NOT changed its ways. It is driven by Greed, and people have actually become Greedier, NOT less, after the last Crisis, especially those who have a role to play in Causing or exacerbating the Crisis, they have just continued to commit the same Errors again, and in a bigger way (in the form of QE1 and QE2)...and soon, QE3...

Greed is NEVER GOOD.

It's time the World learn the Right principles to go back on the Right Path.

Be a Go Giver, NOT a go-getter!

Contrary to common misconception, if you want to be Wealthy, you don't need to be Greedy.

You need to think about How to Serve More People, and GIVE More Value Add to others, you need to think and Act Win/Win, NOT Win/Lose.

If we continue this path driven by Greed, it will ultimately lead to the Destruction of Mother Earth.

I'm NOT joking, and if Earth is gone, Earthlings (Human Beings) will be GONE as well.

Wake up, do NOT be blinded by GREED, wake up before it is TOO Late.

ALL of us can make a difference, we can Change the World, by first changing ourselves, and then Influencing and Changing those around us. I'm doing this to educate and change every person who attend my seminars, ALL my facebook friends, and whoever I can reach out to, to deliver this message.

Wake UP and change before it is too late.

it's NOT a joke. The Greed of Human Beings is the main reason of global warming.

If the World is warmer by 6 degrees, the world might be WIPED OUT.

It is NOT a joke.

We need to wake up and change before it's too late.

Greed is NEVER Good and is likely to lead to the destruction of Earth. http://www.youtube.com/watch?v=-q5oWOKu ... re=related

[Dennis Ng]

After the Japan Bubble Burst and Stock and Property Crash in 1989, Japan went through 22 years of economic slump.

U.S. is likely to go through something similar.

The last 2 years was NOT a recovery, but was just a temporary Bounce engineered by enormous printing of money through QE1 and QE2, with US$2.6 trillion printed.

If QE1 and QE2 didn't work, QE3 (will definitely come, just don't know when and WHAT will it be called) will also fail.

The NEXT Global Financial Crisis has begun...

U.S. constitutes 23% of world economy; Europe also constitutes 23%, Japan constitutes 5%.

These 3 economies are slowing down, totalling 51% of World Economy.

Thus, even if China (9%), India (6%) and ALL other economies grow, can they compensate the 51% Drop? The Next Global Financial Crisis has already begun...

But many would NOT notice nor feel anything until 6 to 9 months later.

This Crisis is different from the one in year 2008. This round we'll experience Stagflation (economy stagnant plus High Inflation, possibly the worst scenario, even worse than Deflation, which is economy stagnant with falling prices).

This Crisis is likely to be more prolonged and steeper and more painful than the one in year 2008. It'll be the Worst Crisis anyone (age below 80) has ever lived through.

Dont blink, Financial Armageddon Is almost here...2011

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


risk of Hyperinflation...

http://www.youtube.com/watch?v=IMBgCl-khp8&NR=1

As I have mentioned many times, the next Global Financial Crisis would be worse than the last one in year 2008...it'll be more prolonged and steep...and actually, the NEXT Global Financial Crisis might have already started...just that things are still NOT too bad now that few would notice its arrival...

But warning signals that all is NOT well include major countries reporting slower economic growth, stock markets falling by close to 20%, Gold prices going up by US$400 in 2 months to US$1,900 (now correcting back to possibly US$1,700)...

What assets would do well in a Stagflation?

Real Assets...including Gold/Silver/Oil..anything Real...becos the Value of each dollar goes down, so the prices of Real Assets go up. This is taught in my Stock Seminar, please refer to the seminar notes. My Seminars are the ONLY ones that teach people what to do in the Next Global Financial Crisis.


So how will property as a real asset fair if the economy is in such depressed state ?

depends, if inflation is higher than weak economic growth, property prices might hold steady or even rise. This is why I own 1 investment property currently (just 12% of my wealth though). I own 7% silver and 2% in Gold. I also have 7% invested into UK Endowment which provides 90% Capital Guarantee even in the worst case scenario of the collapse of UK Insurers in a Crisis. I currently also have 52% in Cash (standby to bargain hunt after stock prices Crash) and 13% in Stocks as well.

Real Investors always factor in possibility that we may be wrong, and we plan our Investment Portfolio accordingly. My investment portfolio is planned in such a way that it is ALL Weather Proof, that I'll be financially ok whether it's inflation, stagflation, recession or depression.

Is your Investment Portfolio ALL Weather Proof? If you want to find out more about UK Endowment, you can email to info@tradedendowment.com or call us at 6883 2235.

Cheers!

Dennis Ng

9 Aug 2011

the next Global Financial Crisis is likely to be worse and more severe than the previous one in year 2008, why?

1. in last round of Crisis, governments throughout the world came to the rescue by borrowing money and printed money. The problem is right now many countries have already borrowed quite a lot of money and there is limited room to borrow much more money to "rescue" the world in the next Crisis.

2. in last round of Crisis, governments throughout the world lowered interest rates to stimulate their respective economies. The problem in the next Crisis is that we'll have the Problem of Inflation...high inflation makes it difficult for countries to lower interest rates, as low interest rates will worsen inflation rates...U.S. current inflation rate is 3.6%, higher than its average about 2% in the last 20 years...China's inflation rate is already 6.5%, and Singapore inflation rate is 5.2%, it is possible for U.S. inflation rate to go up to 5%...and when that happens, it is likely for the 10 year US government bond yield to spike up from current LOWEST level in history, yield of about 2.4% (or HIGHEST Bond Prices in history), to abotu 5%, and that might mean U.S. government bonds falling by over 50%!!! (a Bond Market Crash which didn't occur in the last Crisis.

3. Rising inflation and rising unemployment and austerity measures (ie. cut in social benefits) will lead to many, many more countries having Social Unrest, many more governments throughout the world are likely to be overthrown...

4. when money stops to flow on the streets, blood will flow on the streets...this is scary...

5. and throughout history, if we observe, when there are prolonged period of economic weakness, it typically will trigger and followed by a War. The early 1900s recession was ended by the World War 1....the Global Depression which started in 1929...was finally ended with the beginning of World War 2 in 1938...so if history is any guide, we may see the tigger of a World War 3 should the next Global Financial Crisis resulted in prolonged economic slump...the next economic slump is likely to be longer and more severe due to reasons 1 to 4 as stated above...

I really do NOT wish such events will happen, but this is my latest view on what might happen in the next few years...I really hope I'm wrong, but I think what I analysed seems quite logical...

12 Aug 2011
people will lose confidence in many currencies around the world in the next Crisis.

The 5 fundamentally strongest currency in the world are: China Renminbi, Switzerland Swiss Franc, Canadian Dollars, Australian Dollars and Singapore Dollars.

(Canada and Australia are commodity backed currency) while other 3 countries are backed by foreign reserves.

Good news is Hot money might flow to Singapore in the next Crisis becos of our safe haven status.

[Dennis Ng]

Please read and re-read what I wrote on 18 and 19 Aug 2011 below.

Cheers!

Dennis Ng

18 Aug 2011

It's just a matter of time Gold prices hit above US$1,800 and Silver to hit above US$45...just wait and see.

Once breaks above these prices, next target for Gold will be US$2,000 and US$70 for Silver.

On the other hand, if Gold break below US$1,400 and if silver break below US$30, then uptrend is over. Run for exit.

Please note that Real Investors always already prepared an exit strategy before they enter into any investment. While the average person just invest based on "Hope and Pray" strategy.

19 Aug 2011
As people lose confidence in currencies, Gold and Silver prices might spike up. As I already mentioned and expected, yesterday Gold prices hit a New Record High of US$1,835.70, closing above US$1,800...next stop is US$2,000.

Silver prices still hovering below US$41 (strong resistence), closing at US$40.69, once it break above US$41, likely to move towards US$45....and if it breaks above US$45, likely to move to US$49...and if it breaks above US$49, next stop is US$70.

At Gold to Silver ratio of 30 times, if Gold prices at US$2,000, Silver price is about US$66.70. Currently, Silver lags behind Gold, which to me means Silver has better upside potential than Gold.

Yesterday, I just bought some iShares Silver to boost my investment into Silver, I bought at about US$39.50 (can buy this like any U.S. stocks) symbol is SLV.

Of course, we need to have exit strategy too. If Gold falls below US$1,400, and if Silver falls below US$30, then uptrend might turn to downtrend, get out.

Please remember that :

1. No. 1 question to always ask yourself is :"What if I'm wrong, will I be financially ok?"

2. Have at least 1/3 of your money in Cash as the Crisis might hit us very soon...(maybe just the next 3 months itself).

P.S. I have 52% in Cash currently.

3. do not panic and swing to emotions such as Fear and Greed...make investment decisions based on FA, TA, Common Sense Analysis and Psychological Analysis (guess what the market participants feel).

4. start an investment journal and write down your thoughts and feelings, analysis, to keep as useful reference to look back in future. For me, I treat my postings in this forum as a record, so I don't need to keep a separate Investment Journal. Each posting I made, each analysis I shared can thus be used as reference for future.

5. Lead a balanced life. Despite the market volatility, I do NOT let it affect my work nor my mood. The reason is becos I have done 1 to 4, so no matter what happens, it is something that I have already prepared for.