Singapore-based financial blog that aims to educate people on personal finance, investments, retirement and their Central Provident Fund (CPF) matters.

Monday, 12 January 2015

A new year means a new set of challenges to overcome (and also to profit)

We had a rocky welcome for year 2015 with the disappearance of the AirAsia plane QZ8501 in the Java Sea. One of the numerous aviation mishaps that occurred in 2014. To add on to this rocky start, Coca Cola (one of the world's largest business empires) and Standard Chartered (one of the major banks in the world) decided to cut jobs and to close down its equities business worldwide respectively. In just a span of 2 weeks, a total of at least 5800 jobs have been announced to be cut.

To add gravity to subject, the Swap Offer Rate (SOR) rose to 0.75%, from 0.43%. A 70% increase in just a month. Most home loan packages are based on either the SIBOR or SOR rates, which means fluctuations in these rates can directly affect the property prices and even default rates.

Is this the beginning of the end?

Well, we are not sure. With the oil prices at 5-year low, there may be opportunities to profit. A phenomenon known as a contango is occurring in the oil market. Traders with storage facilities are profiting almost risk-free by locking-in future higher prices. More information can be found in this article: While this may not be accessible to us retailers, there are still many ways to profit from the low oil price. 

However, there is one thing to be sure of. As said in our previous post, this year will be a good bull year for the stock market, proven by historical performance. 

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