Hi guys/gals
I am reposting one article long before i joined any forum
See
FLOW OF HOT MONEY COMES LIKE AN INCOMING TIDE BY WAVES UPON WAVES.
In Year 2007, A Powerful Flood Of Foreign Money Came Into Singapore Like
An Ocean Wave And Lifted Up The Prices Of Properties In Prime Location
Like Orchard Road. Prices Broke All Previous Records And Surged Upward
Due To This Infusion of Hot Money!
Yes, we should go for Properties In Prime Location. Since Location!
Location! Location! Is The Mantra In Property Investments. But Like All
Other Types Of Investment, we can Overpay Above The Intrinsic Or Actual
Value Of A Thing! The People That Blindly Bought At The Peak in Orchard
Road suffered A Collapse in 2008 When Lehman Brothers’ Crisis Hit. Until
today, prices have not recovered to 2007 level.
That’s What Happened To Tokyo in the Late Eighties, when Prices
Skyrocketed Into The Stratosphere. Land in Tokyo was valued at 350
times more than Manhattan. The Land Beneath the Imperial Palace of Tokyo
is more valuable than The Entire State of California! When The Property
Bubble Burst in The Late 1980s, prices crashed for many years. Till
this day, prices have not returned back to the Prices of Those Lofty
Peaks.
The Next Wave Sent Property Prices To Move Up In Holland Area – By-
Passing Those At The Peripheral Like Bukit Batok or Jurong area. For the
people of Jurong, the Wave didn’t arrive till much later.
Finally Development Comes To Jurong. At the last Tender For Executive Condo (EC) Land in Jurong – prices reached a New Record!
You see, Prices Surge In Waves. First The Center, then It Spreads To
The Circumference. When The Tide Comes In, Big Ships Or Vessels Are The
First To Rise, Then As The Waves Reach The Shore All Other Smaller
Vessels Will Also Rise. A Rising Tide Lifts All Boats Ring True.
That’s Why When
Foreign Hot Money Comes In, Blue Chips, Well Capitalized Share Prices
Are The First To Rise. Then Followed By Second Liners. And When Third
Liners Or Penny Stocks Finally Come Into Play – they say That The Bull
Run In Share Prices Is Almost Over. So the First Wave – being the
Strongest lift up Blue Chips. The Second Wave Moves The Second Liners
& The Final Weakest Wave, Moves the Lightweight penny stocks.
What About Iskandar? There was an Initial Surge Into Gated &
Guarded Properties Like Horizon Hills, ADDA Heights, Nusa Duta, Bukit
Indah, Setia Indah, Mount Austin, Taman Laguna, Taman Molek, KSL Bestari
Heights, Senibong Cove & Other New Prime Properties In Gated
& Guarded Locations.
This Is The First Wave! Not Many Singaporeans Are Here Yet. Almost All
On Offers Are LANDED PROPERTIES, with a sprinkle of Condos. And This
Constitute The Very CREAM OF THE BEST INVESTMENTS FOR THOSE BRAVE SOULS
WHO BOUGHT EARLY!
Older Houses In Locations Like Taman Perling, Taman Pelangi, Taman
Johor Jaya, Taman Bukit Kempas, Taman Iskandar, Taman Desa Harmoni &
Other Tamans Or Gardens Started To Move, Albeit, slowly but steadily.
This Is The Second Wave! Developers Have Raised Prices Drastically In
The Second Phase Due To Red Hot Demand.
At ADDA Heights, a Buyer returned a Unit Booked just Above RM420,000
For A Semi Detached Cluster House. Unfortunately, his loan was rejected
by the bank. So he returned the Unit to ADDA Heights. Demand was so hot
that ADDA Heights immediately raised the price of this last
available returned unit to RM480,000! It was SOLD IMMEDIATELY!
Same Thing Happened In NUSA DUTA. For The Those Priced Around RM700K
The Last Unit Was Sold At RM788,000! You See Prices Subject To Changes
According To Market Demand! In This Case Demand Far Exceeds Supply, So
Prices Must Surge Upward!
At Bestari Heights, KSL, Semi-D Cluster Houses Were First Lauched At
RM550,000. The Prices Kept On Rising As The Stock Dwindled. And The Last
Few Units Were Sold Above RM700,000!
For Senibong Cove, First Phase Was Sold At RM500K. For Second Phase
Semi-Detached with slightly bigger land and built up, Prices Jumped To
RM1.2 Millions!
UNLIKE
SHARE MARKET & UNLIKE SINGAPORE, PROPERTY PRICES IN ISKANDAR
SURGED STRONGER & EVER MORE STRONGER AT SUBSEQUENT LAUNCHES.
FINALLY, WITH PRECIOUS LITTLE LAND BANK LEFT, DEVELOPERS ARE MAXIMIZING LAND USE BY BUILDING SKY HIGH CONDOMINIUMS!
At The Same Time, At Property Auctions, Even Houses In Faraway Places
Like Kota Tinggi, Pekan Nenas, Kulai, Kota Masai, Ulu Tiram, Pontian Are
Coming To Life! The Third Wave Finally Reaches The Properties At The
Fringe Of Iskandar.
NOTE: LATEST UPDATE ON 18TH SEPTEMBER, 2013
ECO WORLD (Own By Ex Directors of SP Setia) has Taken Over Focal Aims for An Offer Price of RM1.40 according KLSE Bursa News. Focal Aim has over 1,000 acres of Freehold land at the fringe of Iskandar. 2 Years Ago Focal Aim Shares were traded as low as 25 cents a piece.
ECO WORLD (Own By Ex Directors of SP Setia) has Taken Over Focal Aims for An Offer Price of RM1.40 according KLSE Bursa News. Focal Aim has over 1,000 acres of Freehold land at the fringe of Iskandar. 2 Years Ago Focal Aim Shares were traded as low as 25 cents a piece.
The Spectacular rise of Focal Aim Share Prices indicate that the BEST
IS YET TO COME For TAMAN KOTA MASAI, TAMAN PASIR PUTIH< TAMAN AIR
BIRU, TAMAN SCIENTEX & TAMAN NUSA DAMAI. Taman Nusa Damai has over
600 Acres Freehold land and is Owned by MP CORP. Surprisingly, MP CORP
Share Prices only moved slightly to end at 40 cents even though Taman
Nusa Damai has a better location than Taman Kota Masai. THE ENTIRE
ISKANDAR IS NOW IN HOT DEMAND! AND BY THE WAY, ALL THE RULES THAT WE
LEARNT FROM EXPERTS OR BOOKS ABOUT PROPERTY INVESTMENTS ARE ALL
BROKEN! WE WERE TOLD TO AVOID BUYING HOUSES WITH THE UNLUCKY NOS. 13 OR
ANY NUMBER THAT ENDS WITH 4 (Four Means Death In Chinese), NOT TO BUY
ANY HOUSES FACING T-JUNCTION, HOUSES NEAR SEWAGE OXIDATION POND OR NEAR
HIGH TENSION POWER CABLES ARE NO! NO! AND DON'T BUY PROPERTIES FACING
NOISY HIGHWAY, BIG DRAIN OR GRAVE YARDS!! I TELL YOU - ALL THESE STUFF
OR CRITERIA YOU KNOW ARE ALL THROWN OUT OF THE WINDOW!! Chinese Are
Fighting Over Houses With No. 4! I Lost One House Facing A Big Chinese
Grave Yard In Auction! THIS IS THE BOOM TIME IN ISKANDAR!! THE SUPER
BULL RUN IN PROPERTY CRAZE IS ON!! EVERY TIME AT AUCTION, PRICES ARE
BREAKING ALL PREVIOUS RECORDS!! COMING OUT OF THE AUCTION COURT ROOMS
YOU FREQUENTLY HEAR EXCLAMATIONS LIKE "CRAZY PRICES" "SUDAH GILA!!
(Malay For MAD ALREADY!) SEOW LIAW (Chinese For "GONE MAD!) MORE AND
MORE POWERFUL WAVES OF FOREIGN PARTICIPATION IS COMING!
QUOTABLE QUOTE:- “SUSTAIN YOUR PATIENCE, GREAT MOVEMENTS TAKE TIME TO DEVELOPE…”
Calvin comments (March 17th, 2016 for i3 Investors' Forum):
Yesterday Top Gainers Were Blue Chips like Tenaga, Genting, several Banks & 2nd Liners. This is the indictation that Foreign Funds are Trickling back into KLSE.
With Euro & Japan going into negative interest rates, Hong Kong
now given a negative rating, Singapore with anemic growth of only 1.9%,
China struggling, Arab Banks in possible bankruptcies there is really
few other places to invest monies other than Oversold & Very
Undervalue KLSE!
Malaysia will still be growing a decent 4% to 5% in a World of minus, zero or no growth.
More so as Fed Yellen remarked that the entire US Economy is too weak
to justify raising interest rates for the foreseeable future.
THIS IS IT!
EXPECT MORE FOREIGN FUNDS TO RETURN BACK TO MALAYSIA AT LONG LAST!
SO INVEST EARLY BEFORE PRICES REBOUND AND THEN ONLY START CHASING
AS THE SAYING GOES, "THE EARLY BIRDS GET THE BEST JUICY WORMS. SO THOSE WHO ACT NOW GET THE BEST BARGAIN STOCKS!!"
THIS IS THE PATTERN OF FUNDS FLOW :
FIRST
THE BLUE CHIPS OR HIGH END HOT PROPERTIES
THEN
THE SECOND LINERS OR SECONDARY PROPERTIES
AND FINALLY
THE PENNY STOCKS & THE LOWER LINERS OR HOUSES AT THE FRINGE OF THE BOOM
See how Funds Flow Back To Malaysia
Record funds flow into emerging markets
Confidence in a positive spillover effect into emerging
markets from the mature markets have also been a driver of these flows
as many emerging-market economies are tied into the supply-chain that
ultimately feeds into the mature markets’ consumers.
Corporate earnings should improve with better demand from these consumers.
“Emerging market fund flows amounted to some US$35bil since
mid-November – a rise of more than 50% compared to the previous two
months. Inflows have been particularly strong in recent weeks. Over the
first three weeks of the year, funds investing in emerging market bonds
and equities have attracted US$8.8bil and US$11.5bil, respectively,” it
says.
The flow of funds has supported emerging market equities and
currencies. A Jan 24 Maybank Investment Bank Research report show that
foreigners remained net buyers of Malaysian equities in the first three
weeks of January, at RM2.4bil, after buying RM900mil worth of equities
in December.
But its not just equities, foreigners were also net buyers
of Malaysian bonds, which saw RM2.7bil in net inflows last month after
RM6.7bil in net flows in November as they wrote on the momentum of
ringgit strength and the widely anticipated interest rate hike by Bank
Negara, which was announced on Jan 25.
Maybank’s fixed-income research team expects foreign flows
to remain positive in the local bond market despite the maturity of
RM2bil worth of Malaysian Government Securities (MGS) this month. The
team believes that the risk of maturity-driven foreign selling in the
domestic bond market is reduced, citing net foreign buying of RM6.6bil
between September and October despite RM24.8bil of MGS maturing in the
same period.
The yield differentials also remain attractive for bond
investors, with 10-year MGS closing with a yield of 3.92% on Jan 25
compared to similar duration US Treasuries, which closed at 2.63%. The
difference in yield is 129 basis points.
Technical analysts see the local bourse continuing the
positive trend, with the benchmark FBM KLCI gaining 8.82 points on Jan
25 supported by bank stocks and rising another eight points to end the
week at 1,853. The index is just 40 points from all-time high of 1,896
that was achieved in July 2014.
Maybank’s forex research team also expects the ringgit to
strengthen against the US dollar to 3.95 by the end of this year and
average 4.05 for the whole year, after ending 2017 at 4.05 and averaging
at 4.30.
Calvin comments:
FROM HERE WE CAN SEE THAT FUNDS HAVE BOUGHT UP PUBLIC BANK, MAYBANK, NESTLE, F&N AND OTHER BLUE CHIP STOCKS.
NEXT WILL COME 2ND LINERS
ONE TOP PICK OF CALVIN TAN RESEARCH IS MRCB
WHY MRCB?
COMING UP SEE NEXT POST.
http://klse.i3investor.com/blogs/www.eaglevisioninvest.com/145918.jsp