Monday, January 10, 2011

Bursting of the bubble [2]

Dear Mr Tan,
Thanks for your blog and sharing the tips on “How to survive the bursting of the bubble”. It has been helpful in many ways. I agree with you on the bubble. The current property anti-speculation measures has certain overlap with those introduced in 1996. This link  from REDAS shows the significant events and historical property price index of the past from 1960 to 2006.
The Asian Financial Crisis in July 1997 is somewhat triggered by inflow of “hot money” targeted at the currency. Nevertheless, China is preparing to combat the inflow of “hot money” 

However, as much as anti-speculation policies can be introduced, all it takes is just a significant event to trigger any short selling such as when the South Korea went ahead with the military drill despite threats of North Korea

I have currently more than S$100k invested in Singapore and HongKong shares of which the values have appreciated from the time which is bought many years ago. The plan is to slowly sell it probably from Feb 2011 onwards to the period of Singapore general election date and wish to seek your advice on the timing.


REPLY
I am not able to give timing advice. But in general, it is better to get out of the market when it is high, and not wait for it to go higher. Wish you all the best.