Chapter 20

Pretty good news for the market today huh? Congress approved a rescue bill around 789 billion US dollars for government projects and tax cuts in the states. Do expect things to stablize from the next few months onwards. Like one of the analyst said, this package is mainly for the use to secure jobs in the US and people are able to finance their housing loans thus giving the banks the much needed breathing space.

Locally wise, what a turn around. Both Caspian and Alexis sold close to 500 units for the week among uncertain market conditions. However on a personal note, I have to applaud the bravery or foresight for these buyers that opt to enter the market at this time. Unlike most of the population where their take is to adopt a sit and wait stance, hoping the market will drop further. But like I said, Singapore is quite different from countries like the US and Europe where land is not so limited. I do feel that prices for property is unlikely to depreciate further, even if it does , not more than 20%. Liked what I shared with my clients, entering the market now secures the 25% price reduction for you. To get a realistic figure on the property price in Singapore, always calculate how much would the bare land cost? Factor in the construction costs and operation costs of the developer. How low can the price go? People are always blinded by greed just like the gamblers in a casino so committed to the belief that they can make a fortune at the gambling table. However by sitting back and wait, you are taking a gamble that the prices will drop further. However, what if the prices stagnates and goes for a quick rebound in the second half of the year? Are you quick enough to react? And by the time you do react, prices could very well be higher than what you are seeing now. Classic example of this happened in 4Q of 2006 to 1Q 2007. It took only a matter of months to see an increment of like 10-15%. Not much people are receptive to this viewpoint of mine though. And I am hoping come end of this year, they are made to eat their words.

Yesterday started well enough where some results of my networking efforts are starting to show. But all these ended on a bad note. Co-worker's car got wheel-locked while we were doing a study on site. Despite appeals, $107 dollar fine was imposed. Spent so much time on this issue that it screwed our schedule for the whole of yesterday. Sigh

PS: With regards to my previous posting on the banks, Merrill paid out at least a million dollar each to 700 of their top executives last year even when the investment bank is bleeding badly with big figure losses. I just don't get it. Why should they deserve the big fat payout when the company is doing so badly? Was not bonus directly related to the performance of the firm huh? And these are the people whom caused this financial meltdown. Looks like the authorities are not spanking these asses hard enough. These are the jokers which call themselves talent.