some questions i have regarding inflation..
from the intelligent investor.. it is mentioned that to beat inflation.... there's a few ways to go about doing it..
investing in stocks.. possibly investing in precious metals like silver and gold.. and TIPS.
wish to hear advice regarding this area of finance.. especially in our local context.. sometimes I think the books we read are often targeted for the american context. for instance, in singapore, we do not have TIPS?
Way to beat inflation
Moderators: alvin, learner, Dennis Ng
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wemakebread
- Investing Mentor
- Posts: 297
- Joined: Tue Oct 06, 2009 2:07 pm
- Location: Singapore
Hi Ax,
Actually I have also been thinking about the topic of "investing" and "inflation" lately.
Inflation decreases buying power.
Why invest? A simple reason is to counter the effects of inflation.
To achieve this, the return on investment must be > inflation.
Putting money in the bank or in fixed deposits give such low yields that is insufficient to cover inflation. Hence the need to look for investments which gives higher returns, but likely to come with more risks as well.
Taken further, some even see investment as additional source of income.
Using Robert Kiyosaki's Cashflow Quadrant, there are 4 possible sources of income:
1) Employment
2) Small business owner / self-employed
3) Business Owner (using other people's time to help you make money)
4) Investing (using money to make more money)
There are many different asset classes:
1) stocks
2) forex
3) precious metals
4) bonds
5) property / real estate / land banking
6) commodities (oil, corn, sugar, etc)
7) collectibles (fine wine, coins, stamps, antiques, art pieces)
insurance
9) cash (money market fund)
There are also derivatives:
1) options / warrants
2) CFD
3) synthetic structured products
4) futures
5) ETF
6) tax liens
As Singapore is positioning itself to becoming a global financial hub, we actually have access to many investment choices here.
Within this forum itself, you can already find a lot of information on Singapore Stocks, Singapore property, Gold, Silver, Fine Wine, Land banking, UK Traded Endowment Policy, etc.
Most of them are accessible (tradable) for normal Singaporeans.
It is also quite easy to open US trading account to gain access to US listed stocks & ETFs. For TIPS, really have to ask the sifu.
Cheers!
Actually I have also been thinking about the topic of "investing" and "inflation" lately.
Inflation decreases buying power.
Why invest? A simple reason is to counter the effects of inflation.
To achieve this, the return on investment must be > inflation.
Putting money in the bank or in fixed deposits give such low yields that is insufficient to cover inflation. Hence the need to look for investments which gives higher returns, but likely to come with more risks as well.
Taken further, some even see investment as additional source of income.
Using Robert Kiyosaki's Cashflow Quadrant, there are 4 possible sources of income:
1) Employment
2) Small business owner / self-employed
3) Business Owner (using other people's time to help you make money)
4) Investing (using money to make more money)
There are many different asset classes:
1) stocks
2) forex
3) precious metals
4) bonds
5) property / real estate / land banking
6) commodities (oil, corn, sugar, etc)
7) collectibles (fine wine, coins, stamps, antiques, art pieces)
insurance9) cash (money market fund)
There are also derivatives:
1) options / warrants
2) CFD
3) synthetic structured products
4) futures
5) ETF
6) tax liens
As Singapore is positioning itself to becoming a global financial hub, we actually have access to many investment choices here.
Within this forum itself, you can already find a lot of information on Singapore Stocks, Singapore property, Gold, Silver, Fine Wine, Land banking, UK Traded Endowment Policy, etc.
Most of them are accessible (tradable) for normal Singaporeans.
It is also quite easy to open US trading account to gain access to US listed stocks & ETFs. For TIPS, really have to ask the sifu.
Cheers!