real estate or stocks as an investment??

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  1. #41

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    I don't know any expat that have all their investments in HK and I know many that have none. Most have something back in their home country and most people I know that buy stocks have some here and in the US and/or home market.

    Now your scenario of course is theoretically possible but I consider it unlikely.

    In any case, whatever one decides to do with money, there's always a risk. If you keep it under your mattress, it could get stolen, if you put it in the bank, it could go belly up or a currency can fall dramatically coupled with inflation and all of a sudden you are much poorer than before. Many countries have experienced that situation(Indonesia, Mexico and Argentina just to name three)

    Personally, I milk it when I can because I know there will always be darker days and that doesn't preclude sitting on the beach and relaxing(not drinking for me, I hate alcohol), quite the contrary in fact. I'm mostly traveling these days and I can thank my investments for it...Freedom 45 baby


  2. #42
    Quote Originally Posted by gilleshk:
    I'm mostly traveling these days and I can thank my investments for it...Freedom 45 baby
    You don't need to work? Boy, I'm not making the right choices, haha

  3. #43

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    Moron boss gave me a choice a few months back, stop riding your bike to work or no more contract. I chose the latter and have no immediate plans(nor need) to find work, maybe in 2011 if I get too bored. Last summer in France, fall will be in Canada then a month in Thailand before Xmas and 5-6 months in Africa for 2010...

    You gotta love life in the new millennium where you can be sitting on the beach in Thailand or France, tap a few keys on the computer and your money is made for the week/month...


  4. #44

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    Quote Originally Posted by Andyhk888:
    Is it that you opened a local HK account and hold your Thai corporate bond/receive coupon payments here?

    Your diversification is really impressive.
    The one thing that isn't very diversified is my mechanism for doing a lot of this - most of my equity investments and all of my bonds are simply bought through HSBC. They brokered the Thai Aromatics USD bonds a couple of years ago (I get semi-annual coupons here in USD). Regrettably, with all the fuss over risky investments they now only have very very low yield low risk bonds for sale by that route.
    Last edited by PDLM; 16-09-2009 at 12:27 PM.

  5. #45

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    Quote Originally Posted by MingleinHK:
    You know what a trader does? Buy low and sell high. I can hardly imagine that he/she is creating real value. Do you know why there was a housing bubble in the UK and US? Because there were more people buying than there were people selling, regardless of asset fundamentals. I am not the one who likes to engage in trading paper, so I stay out of stocks. If you call that wealth creation so be it. And communism? Haha, I would rather drink beer and stay on the beach than thinking about that kind of radical label.
    Gasps at the inaccuracy of the comments.

    I can hardly imagine that he/she is creating real value. A quick look at their bank account would soon allay any thoughts you might have. VALUATION of stock as an asset on the other hand is not real value.

    Do you know why there was a housing bubble in the UK and US? Because there were more people buying than there were people selling, regardless of asset fundamentals.

    Errrrrrrrr No.
    Professional's definition of Housing Bubble: Rapid manipulated rise in housing prices caused by speculation in the housing market due to low interest rates.

    When lenders are rushing to give out money to buyers then it becomes a sellers market and rapid price inflation takes place. If more buyers than sellers then its a fuild market BUT unless supported by liquidity, the buyers are only potential or restricted to a tiny % of the market with cash being king. A bit like what is happening now, if you take out the Hang Seng factor. Real people like first time buyers are not and have great difficulty in, getting into the market due to liquidity issues with lenders plus rising prices and unrealistic expectations of wealth creation through the rise of the stock market index.

    I draw your attention to this article. Especially the last line.For some there will never be an economic crisis. Just an opportunity.
    Masterpiece price for flat - The Standard

  6. #46

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    Quote Originally Posted by Boris:
    Gasps at the inaccuracy of the comments.

    I can hardly imagine that he/she is creating real value. A quick look at their bank account would soon allay any thoughts you might have. VALUATION of stock as an asset on the other hand is not real value.

    Do you know why there was a housing bubble in the UK and US? Because there were more people buying than there were people selling, regardless of asset fundamentals.

    Errrrrrrrr No.
    Professional's definition of Housing Bubble: Rapid manipulated rise in housing prices caused by speculation in the housing market due to low interest rates.

    When lenders are rushing to give out money to buyers then it becomes a sellers market and rapid price inflation takes place. If more buyers than sellers then its a fuild market BUT unless supported by liquidity, the buyers are only potential or restricted to a tiny % of the market with cash being king. A bit like what is happening now, if you take out the Hang Seng factor. Real people like first time buyers are not and have great difficulty in, getting into the market due to liquidity issues with lenders plus rising prices and unrealistic expectations of wealth creation through the rise of the stock market index.

    I draw your attention to this article. Especially the last line.For some there will never be an economic crisis. Just an opportunity.
    Masterpiece price for flat - The Standard
    Indeed, a pretty scary lack of understanding of basic economics.

    And the point about "more people buying than there were people selling" is hilarious - there generally both being a buyer and a seller in each transaction...

  7. #47

    Supply and demand rule tells us that when there are more buyers than sellers, the price for the good goes up. Now why would that be a hilarious statement? If there are much more people willing to buy than there are people willing to sell, you create a price increase scenario that doesn't rely on the asset's fundamental value after a while.


  8. #48

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    Buying is different to buyers, Selling is different to sellers.
    You can't buy more than is being sold - unless your name is Madoff or maybe some stuff in the financial markets.


  9. #49

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    Now tell us how there can be buying without buyers. ;-)


  10. #50

    Gilleshk, I am envious of your ability to travel the world. I have to admit, I can't do what you do yet because I haven't made the money yet!


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