Rating downgrade for US

In 1997, when the Asia had a financial crisis, the G7 and IMF came up with a regulations, and conditions to resolve the situation.

Now that the developed economies have a crisis, who is going to resolve this matter.

Today some of the best monitored and regulated Countries are in Asia. This is indeed a Proud moment.

The truth however is that whatever mess US or Europe is in, We still are linked to their problems as they an important link for the growth. We are dependent on them for technology and also consumption.

So the bottomline is it doesn't matter if US is AAA rating or AA+. we still need them for our growth.

The seven "R"s for 2011

January is always packed with talks and seminars on how the year will turn out to be... and from one such talk, I compiled the list of "R"s that can affect the investment markets this year.

First R- Reflate the US market. US is facing deflation and the challenges faced by the economy and the measures taken to reduce the Deflation could impact the world market.

Second R- Rebalance Asia. While US is facing deflation, Asia is facing high inflation. The inflationary pressures are huge and that could have a negative effect on the market.

Third R- Resolve the Eurozone Debt Crisis. PIIGS- Portugal, Ireland, Italy, Greece and Spain were in serious debt crisis in 2010. How they manage it this year will have an impact on the markets.

Fourth R- Remember S&P 500. Historically, if the first 5 days of S&P trading is up, S&P ends up high end of the year. This has turned out to be true for 37 time of the last 41 years.

Fifth R- Rally in US markets in the 3rd year of the US presidential term. Again, statistics shows that the 3rd year of the US presidential term has always had a market rally and on a average the markets have risen more than 10.5%. This statistic is particular true especially in the first term of a new president.

Sixth R- Year of the Rabbit. CLSA does forecast every year on how the Chinese year will be. To read the full review please go to the link below. These are for Hong Kong Market. Overall, their prediction is that the Hong Kong Market will do a bunny leap this year.
https://www.clsa.com/index.php

Last and Seventh R- Reality. The speaker tweaked the words of Forrest Gump- My Mama said, market is like a bag of chocolate. You never know what you will get.

3 steps to your Financial goals setting

Planning is a loborious process and when we break down the process to steps its easier to understand and execute.
The 3 main steps to Financial goal setting are

• What you have
• What you want
• How to achieve it.

What you have:

Reviewing current financial position is very important process. If you are in a lot of debt and want to save a million, it doesnt make sense, as reducing the debt is the priority before saving. A very easy process would be do a simple cash flow and find out how you are spending the money you earn. ( I have a template and if you want to use do email me)

What you want:

For this question, sky is the limit. A realistic goal which also takes little steps is achievable. Breaking down long term goals to small achievable short term goals is the best way to work this out.

How to achieve it:

For this step, categorising the goals is important. Savings, investment, protection, retirement etc. There maybe some overlaps too. This step requires time with your financial advisor to come up with a goal.