Outlook for 2009

Hi all, Hope you had a good holiday and are back to work fully recharged.

Someone mentioned that there was huge hoarding in Mumbai near the Exchange, " Thank God, 2008 is over".

Well, 2008 was a year of surprises. Century old institutions collapsed. Almost everyday there were fresh news of financial turmoil.

Cycle of Life. Everything in life follows a cycle. I am going to concentrate on the cycles related to Money.

There are three major cycles-Economic cycle, Stock market cycle, and real estate cycle that affect our life financially. Commodities pricing, inflation, interest rates have effect on the economic cycle predominantly.

Economic cycle is now in recession. So this year we are going to see negative growth. In layman terms is it means, factory shut downs, pay cuts, job loss and unemployment, and increase in robbery, theft etc. This year can be traumatic for many.

The stock market started to crash from July 2007. At that time, economy was doing very well. Companies were still showing profits, good bonuses etc. From July 2007, the stock market has lost almost 60%.

The real estate cycle in Singapore, is still relatively high although the peak was sometime in May 2008 for private property and Oct 2008 for HDB. I think most Asian countries had the same pattern. Europe and US have different timings.

Now while comparing the 3 cycles and its relationships, The stock market cycle is always ahead of the economic cycle, and the real estate cycle lags the economic cycle.

So if you are looking for investment opportunities, its never possible to time the market, however, the stock market is comedown a lot since july 2007. So 2009 should be a good year to get in. Now, the question of the recovery package not being effective, interest rate cuts and inflation will only show up as volatility in the stock market. So it could be a roller coaster ride but for the long term it should generate positve returns.

Do post your comments or views so that it will benefit all.

Have a wonderful day..... Swarna

Disclaimer: This is not any recommendation. Any investment done has to be done based on Risk Profile

Financial Tsunami- Reflections

I just wrapped up all my work for this year. It was a good year for me.....I am looking forward to a good year in 2009.
2008 has been a very volatile year and lot of changes in the world. As we normally do, looking back at the year that was...... and a New year......ready to unfold....I want to look at a couple of things....

Reflections

Goal for the new year...

I did an exercise on Reflections yesterday. I want to share it with you all. List down 3 things you are proud of achieving this year. It could be at work, family or with friends. Also list down 3 things you thing you could have done better. Missed opportunities. Miscalculations.

It can happened that you have 3 positive and 30 negatives... Don't be so critical on yourself. Its a very natural feeling that we feel we could have done better. Pat your back for the positives in your life and reflect on the negatives. Make a GOAL for the new year to reduce your negatives.

I strongly believe in The law of attraction. You attract what you feel in your subconscious. Start to be more aware of positive and negative thoughts and consciously avoid the negative thoughts. You will definitely see a POSITIVE impact in your life.

Gratitude.....

In this materialistic world we always want more and hardly spend time looking back at what we have. I am grateful for your time spent reading my thoughts. Thank you.... Danka.... दन्यवाद....... நன்றி. Sharing a poem that I like....

I am grateful!

I am grateful .......For the mess to clean after a party,Because it means I have been surrounded by friends!

For the clothes that fit a little too tight, Because it means I have enough to eat!

For my shadow that watches me work,Because it means I am out in the sunshine!

For my landscape that needs trimming,Windows that need cleaning,Roof that needs fixing,Because it means I have a home!

For the parking spot I find at the far end of the street,Because it means I am capable of walking and I have been blessed with transportation!

For my air conditioning and electricity bills,Because it means I am cool and comfortable!

For the pile of laundry and ironing, Because it means I have more than enough clothes to wear!

For the occasional power outages,Because it makes me stop and become present!

For the weariness and aching muscles at the end of the day,Because it means I have been capable of working hard!

For the alarm that goes off in the early morning hours,Because It means that I am alive!

And finally, for too much of e-mail,Because it means I have friends who are thinking of me!

By J।Loeks.

Wishing you all a Positive and Fulfilling New Year..... Until the next year.... Swarna

Planning for young parents

Everyone who has a child will agree that "having children is expensive". You need to plan well in advance how to manage time, career and money when it comes to children.

Here are 5 tips to consider

1. If both parents are working, re look at the priorities and careful plan how you are going to manage time and career. Plan on the chores each of you will do.
2. Re look at your insurance. Typically, you need to have at least 10 years of your basic expenses covered.
3. Education planning is a huge expense these days. the earlier you start saving the easier it would be on your purse.
4. Critical illness & Medical insurance for the child is also essential. It is not uncommon these days to see young kids having cancer or heart problems. The cost of treatment is high and this will be easy on your pocket. Also, cost of insurance is low when you start young.
5. If you haven't got a WILL written yet, get it done ASAP. Estate Planning is essential.