Wealth Management Singapore

The MSCI World Index of stocks fell for a sixth day, its longest losing streak in almost a year. The global index of equities in 23 developed nations retreated 0.4 percent as at 27th Jan morning New York, bringing its six-day slide to 5.4 percent.

Greek bond yields surged to a 10-year high amid concern growing sovereign debt will derail the economic recovery. The yen and dollar gained as commodities dropped.

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China’s wealthiest are gaining against their U.S. counterparts.

The total net worth of China’s 40 Richest, all of whom are now billionaires, doubled in the past year as bust turned to boom. A quick comparison of our new Forbes China Rich List with that of the Forbes 400 list of richest Americans, published in September, appears to tell a expected story. China’s 400 Richest are worth a record $314 billion, just one-fourth the total net worth of their American counterparts. China’s richest person, BYD’s Wang Chuanfu, has a net worth of $5.8 billion, far below the $50 billion fortune of U.S.’s richest citizen, Microsoft’s Bill Gates. In the U.S., Wang would only rank no. 40.

But the more interesting story is the fact that Chinese tycoons are making huge gains, at a time when many of the world’s richest haven’t been as lucky. As a result, there is a record 79 billionaires, up from 24 a year earlier, more than Germany, Russia or India had published in our worldwide billionaire rankings. The U.S. has 391 billionaires, down from 489 a year ago. The total net worth of the China 400 jumped 81%, or $141 billion, at a time when American’s wealthiest lost $300 billion, or 20% of their cumulative total, dropping to $1.27 trillion.

Chinese Richest List 2009

Forbes Full Article

China Trade Rebound Aids Global Economic Recovery
China’s exports surged in December 2009 to make it the 2nd largest exporter in the world. Imports rose to a record in a stronger-than-forecast trade rebound that may lessen the case for governments to sustain stimulus programs this year.

Exports climbed 17.7 percent from a year earlier, the first increase in 14 months, and imports jumped 55.9 percent. Year-on-year comparisons are affected by the tumble that began in late 2008, when the global credit crisis deepened. Shipments to the U.S. and the European Union grew 15.9 percent and 10.2 percent respectively from a year earlier. Imports from Australia and Malaysia more than doubled.

Soaring imports are more evidence that China’s economy may face an increasing danger of overheating. Chinese government, while warning that recovery is not yet solid, pledged to “guide” speculative flows, bank loans and property lending. China is expected to raise interest rates and let its currency appreciate in the coming months as policy-makers resort to more aggressive measures.

Countries like Taiwan also experienced surge in exports while Australia and New Zealand markets and currencies gained on bets their economies will benefit from the increase in shipments to China. Among other points, the International Monetary Fund has said it will probably raise its estimate for 2010 world growth from 3.1 percent.

Trade Rebound Aids Global Economic Recovery

Analysts bullish over earnings season
In Singapore, as earnings report for Q4 and the full year 2009 goes into full swing next week, analysts are expecting good results for all sectors given the cost cutting measures and rebound in economy in 2009. Except for the volatile biomedical sector, which is not represented in the local stock market, all sectors grew in Q4 last year.

Analysts bullish over earnings season

I recently started working for a new client and was also providing advise on financial assets he has invested through banks. There is one particular Structured Product he entered into. Due to the complexity of the product and knowing that the client, who is in the medical field, has little knowledge about financial markets, I asked him what went on during the purchase process and how he arrived at the decision.

As expected, he cannot recall very clearly what was communicated and how the decision was made. However, what he remembered clearly was that the capital for the investment was protected and that the 1st year interest is guaranteed. Here’s the term sheet and the description.  20-yr JPY Swap

Now, my thinking are these. Firstly, it is my thinking that as the market gets more sophisticated, structuring teams of banks use their creativity to row out Structured Products clients can invest in. As the bank employees have increasing interest and ” sense of achievement” in mastering complex information and products, there was a disconnection between where developments are heading and what the client really needs. Do a client really need to enter into a Interest Rate Linked Structured Deposit tied to 20-yr JPY swap rate?

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