In financial doctrine, we learn that a stable cashflow (low-volatility) company will be highly sensitive to interest rate compared to a high volatility company. This means that low volatility cashflow will be positively correlated and high volatility cashflow will be negatively correlated to the interest rate.
As banks and insurance companies have relatively stable cashflows, these companies will benefit in an interest rising environment.
Previous related post:
https://sg-stock.blogspot.sg/2017/02/who-will-benefit-in-high-interest-rate.html
Thursday, March 2, 2017
US stock markets are high on drugs now!
USA fundamentals have not changed much on the main street but wall street's euphoria is based on sentiments towards Trump's speeches insofar. Trump's fiscal stimulus will boost the economy but this ephemeral will be negated by Janet Yellen's rate rises and the stock markets will come crashing down hard. The US stock markets are like a house of cards now.
Wednesday, March 1, 2017
Advancement in robotic technology. What the latest robot can do!
Japan wants to tell USA to respect WTO rules.
https://uk.finance.yahoo.com/news/japan-tell-u-respect-wto-rules-pm-abe-045130597--business.html
What a joke!
There is no way for Japan to tell USA what to do. It's always USA telling Japan what to do.
What a joke!
There is no way for Japan to tell USA what to do. It's always USA telling Japan what to do.
Ezra's ECS bankruptcy will affect DBS & OCBC.
http://www.reuters.com/article/us-ezra-hldgs-affiliate-bankruptcy-idUSKBN16728C
DBS & OCBC have loan exposures to ECS. Ezra will have to write off its ECS investment of about USD$170m (40% stake in ecs). DBS's exposure is about USD$84.6m and OCBC's exposure is about USD$13.1m.
DBS & OCBC have loan exposures to ECS. Ezra will have to write off its ECS investment of about USD$170m (40% stake in ecs). DBS's exposure is about USD$84.6m and OCBC's exposure is about USD$13.1m.
UN is an useless organization now!
https://sg.news.yahoo.com/russia-china-veto-un-resolution-syria-sanctions-172339348.html
If the west especially USA don't work with China and Russia, UN will be a useless organization that cannot get work done because there must be not a single veto in any UN decision. When there are 2 vetoes from Russia & China, UN cannot carry out its ruling.
If the west especially USA don't work with China and Russia, UN will be a useless organization that cannot get work done because there must be not a single veto in any UN decision. When there are 2 vetoes from Russia & China, UN cannot carry out its ruling.
WTO is fast losing its credibility.
https://sg.finance.yahoo.com/news/trump-administration-ignore-wto-rulings-sees-anti-u-030245789--finance.html
WTO refused to honour its own contract with China to grant the market economy status automatically after 15 years. By setting such a bad example to the world, USA is just following suit by ignoring WTO rulings.
Why must other countries abide by WTO ruling when WTO refuses to abide by its own contract?
WTO refused to honour its own contract with China to grant the market economy status automatically after 15 years. By setting such a bad example to the world, USA is just following suit by ignoring WTO rulings.
Why must other countries abide by WTO ruling when WTO refuses to abide by its own contract?
Tuesday, February 28, 2017
North Korea is at its wits' end now.
http://www.reuters.com/article/us-northkorea-china-envoy-idUSKBN1670BP?il=0
Coal export to China constitutes 1/3 of North Korea's incomes. Therefore, coal import ban from China will affect North Korea tremendously. North Korea's coals are of high quality because they're non-smoke coals which don't produce smogs.
The next weapon China has is OIL export ban to North Korea. This will crumble NK.
Coal export to China constitutes 1/3 of North Korea's incomes. Therefore, coal import ban from China will affect North Korea tremendously. North Korea's coals are of high quality because they're non-smoke coals which don't produce smogs.
The next weapon China has is OIL export ban to North Korea. This will crumble NK.
South Korea will enter economic downturn in 2017 - Part 3
https://sg.news.yahoo.com/china-angrily-reacts-threats-south-korean-missile-defence-033503970--finance.html
China will ban and boycott LOTTE businesses in China for helping South Korea government to install THAAD system. Good grief! Why is South Korea so adamant in THAAD installation when the system cannot defend against more than 10,000 mobile rockets launchers from North Korea?
Part 2:
http://sg-stock.blogspot.sg/2017/02/south-korea-will-enter-economic_25.html
China will ban and boycott LOTTE businesses in China for helping South Korea government to install THAAD system. Good grief! Why is South Korea so adamant in THAAD installation when the system cannot defend against more than 10,000 mobile rockets launchers from North Korea?
Part 2:
http://sg-stock.blogspot.sg/2017/02/south-korea-will-enter-economic_25.html
Monday, February 27, 2017
USA has no money to repay its debt!
https://sg.finance.yahoo.com/news/us-treasury-rekindles-interest-rare-century-bond-045924053.html
What do you do when you don't have money to repay or roll over your debt?
Well, you just need to issue much longer dated bonds to roll over your money so that the days of reckoning will come much later.
What do you do when you don't have money to repay or roll over your debt?
Well, you just need to issue much longer dated bonds to roll over your money so that the days of reckoning will come much later.
Sunday, February 26, 2017
The Kim who was assassinated in KLIA might not be the real Kim Jong Nam.
There was a Japanese reporter who claimed to be have known Kim Jong Nam for a long time said that Kim Jong Nam had tattoos on his body including his tummy. However, no tattoo was spotted on his tummy on the picture (as shown). Therefore, the deceased man might not be the real Kim Jong Nam according to the Japanese reporter.
Saturday, February 25, 2017
DPM Tharman said that the government had enough provision for this decade.
https://www.gov.sg/factually/content/is-the-government-planning-to-raise-the-gst-after-the-next-general-elections
Let's see if this is true by not raising GST in this decade since the government has enough provision.
Let's see if this is true by not raising GST in this decade since the government has enough provision.
Bill Gates' suggestion on robot tax won't work!
http://fortune.com/2017/02/18/bill-gates-robot-taxes-automation/
Imposition of robot tax to save any human job won't work because it is a regressive action that will impede productivity. This action will force businesses to choose between human or robot based on cost instead of productivity. Furthermore, businesses will move to other countries without robot tax so that more robots can be used. The fundamental reason businesses adopt automation is to improve productivity and lower production cost. If we impose robot tax to compel businesses to adopt lesser robots, it will defeat the purpose of improving productivity as a human cannot work 24/7. If full automation can increase productivity and lower product cost better than semi-automation with some human labour, why would we want semi-automation unless full automation has a higher robot tax which can lead to higher production cost?
Imposition of robot tax to save any human job won't work because it is a regressive action that will impede productivity. This action will force businesses to choose between human or robot based on cost instead of productivity. Furthermore, businesses will move to other countries without robot tax so that more robots can be used. The fundamental reason businesses adopt automation is to improve productivity and lower production cost. If we impose robot tax to compel businesses to adopt lesser robots, it will defeat the purpose of improving productivity as a human cannot work 24/7. If full automation can increase productivity and lower product cost better than semi-automation with some human labour, why would we want semi-automation unless full automation has a higher robot tax which can lead to higher production cost?
Iphone 7 is an exploding device. Be careful!
https://www.yahoo.com/tech/apple-investigating-iphone-7-caught-140100976.html
Iphone 7 has gone awry! It can explode like an IED.
Iphone 7 has gone awry! It can explode like an IED.
Iceberg has issued another report on Noble group.
https://iceberg-research.com/2017/02/24/noble-group-how-many-times-can-you-fool-the-same-people/
No smoke without fire or this report on Noble's fraud is also a fraud report?
No smoke without fire or this report on Noble's fraud is also a fraud report?
Baltic dry index - 875
Today, Friday, February 24 2017, the Baltic Dry Index climbed by 19 points, reaching 875 points.
Baltic Dry Index is compiled by the London-based Baltic Exchange and covers prices for transported cargo such as coal, grain and iron ore. The index is based on a daily survey of agents all over the world. Baltic Dry hit a temporary peak on May 20, 2008, when the index hit 11,793. The lowest level ever reached was on Wednesday the 10th of February 2016, when the index dropped to 290 points.
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Related stocks: Cosco & Sembcorp Marine.
US rig count - 754
HOUSTON (AP) - The number of rigs exploring for oil and natural gas in the U.S. increased by three this week to 754.
A year ago, 502 rigs were active.
Houston oilfield services company Baker Hughes Inc. said Friday that 602 rigs sought oil and 151 explored for natural gas this week. One was listed as miscellaneous.
Texas increased by eight rigs and Wyoming gained one.
Alaska and Louisiana each lost two rigs and North Dakota declined by one.
Arkansas, California, Colorado, Kansas, New Mexico, Ohio, Oklahoma, Pennsylvania, Utah and West Virginia were all unchanged.
The U.S. rig count peaked at 4,530 in 1981. It bottomed out in May at 404.
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Related stocks: Keppel Corp, Sembcorp Marine & Cosco.
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