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

Friday, 14 April 2017

Hu Li Yang Gravity Line Investment Strategy

Hu Li Yang 30 Stock Investing Strategies

What is a Gravity Line? 什么是地心引力线?
A stock's Gravity Line is the average between its 30-day moving average and 72-day moving average.
Gravity Line = (30-day SMA + 72-day SMA)/2
Why this weird number?
I have no idea, it was mentioned in HLY's book that he researched about it and found these 2 numbers gave the best results
一个股票的地心引力线是它的 (30日移动平均价 + 72日移动平均线)/2

Use of Gravity Line? 如何利用地心引力线投资?
1) When the stock price falls to 20% below Gravity Line and
2) Stock Volume greater than the average volume for the past 5 days
This is a signal that the falling trend has reversed and it is time to buy.
This means that the stock is heavily undervalued and the spike in volume could mean that someone has spotted this and is buying into the stock.

1)当股价已跌到低于地心引力线至少 20%

What is a Taser Line? 什么是高压电线?
This is a price line that is 20% above the stock's Gravity Line
Taser Line = Gravity Line x 120%
A stock price that falls below this line tends to continue falling.
一个股票的高压电线是它的(地心引力线 x 120%)

Use of Taser Line? 如何利用高压电线投资?
1) When the Taser Line starts to go flat and
2) The stock price fall below the Taser line
This is a signal that the rising trend has reversed and it is time to sell.
Description: The stock price hits the Taser Line (because it rose too fast), hence it needs to fall back a little (attached by the Gravity Line below it)


Wish to learn more techniques from the Master himself?
Join him in his upcoming seminar in Singapore!
想多向大师学习吗?机会来了! 胡立阳将在新加坡举办一场讲座会。

Hu Li Yang Investing Seminar 2017
胡立阳投资讲座 2017

Learning Points:
1) Is the current market condition suitable for investing or should I wait?
2) What techniques should I use if I wish to invest currently or in the future?
3) What strategies does Mr Hu use that I can use?
4) What temperament should I possess in order to succeed in the stock market?

Speaker: Mr Hu Li Yang (胡立阳先生)
The Godfather of Asian Stock market, Hu Li Yang, is back in Singapore to share with us his view on the investing opportunities and risks in year 2017! Spend 1 full day learning from the Man himself as he would discuss his views and how investors should position their portfolio for the rest of 2017!

Mr Hu previously held the position of Vice-President of Securities in Merrill Lynch in the 1980s, then the biggest securities firm in America. In 1986, he gave up his high paying job and return home to Taiwan to develop and educate its people on investing in the stock market. Since then, he has been regarded as the 'Godfather of Asian Stock Market' and has gone on to published best-selling books on stock market investing.

He accurately predicted that:
1) the Dow Jones Index will rebound on 2009 March,
2) the Taiwan stock market will exit a bear market on 2009 November,
3) Gold's temporary peak on 2009 December,
and many more!

拥有 ‘亚洲股市教父’ 和 ‘故事神童’ 职称的胡立阳回来了。在这次的讲座中,胡立阳将与你分享他对未来一年股市的动向和如何从中赚到钱。 除了与胡立阳老师有近距离接触之外,你也将学到他花了毕生心血专研出来的股票分析技巧和手法。

胡立阳曾是美林证券行的第一位华人副总裁,在 1986 年,他放弃了在美国的高薪职位,返回了台湾,并大力地推广台湾投资热潮和教育人们如何投资。从此以后,胡立阳就得到了 ’亚洲股市教父‘ 职称,也成功了推出很多关于投资的书。


Event Details:
Date: 8 April 2017, Saturday (4月8日2017年,星期六)
Location: Maybank Kim Eng 48 North Canal Road, Singapore 059305
Time: 10.00AM  6.30PM (registration starts from 9.30AM)
Price: $688 (U.P. $738)
The seminar will be conducted in Chinese

Click HERE to sign up for the event!

Limited Seats Only! Sign Up Now!

Monday, 10 April 2017

Why is it call a Bull Market and a Bear Market?

Ever wondered why is a dropping market call a bear market and why is a rising market call a bull market?
There is no 100% confirmed story, but the one we present below is one that has been highly circulated over the years.
Apparently, it has something to do with the bears and bulls attack their prey.
Think for a moment how these animals attack their prey.

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Bull Market
How does a bull attack its prey?
It charges at it, the uses its horns to thrust its prey up.
The prey getting swing upwards is similar to a rising stock market - upwards

Bear Market
How does a bear attack its prey?
It swings its 2 arms down at the prey.
The prey gets hits downwards, similar to a dropping market - downwards

Yes! This is true!
You can Google why is it call a bull or bear market, or we can save you the trouble and you can read it from Investopedia

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Remember to offer your opinions. If you don't put your two cents in, how can you expect to get change?

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Monday, 3 April 2017

Active or Passive Way of Investing?

Active Investing versus Passive Investing

This is the battle that is happening on Wall Street since 1975 when John C. Bogle started the first fund company, The Vanguard Group, in the United States (US) offering to mom-and-pop investors low-cost index funds that aim to mimic the US index returns and charge extremely low cost for it (like 0.1% of the asset per year).

Before 1975, active trading (or active fund management) was the only thing available to investors who wished to get someone to managed their money. These active funds seek to achieve above market returns for their investors, and in return they charge high fees (from 2% to 20% of the profits per year).

At the beginning, everyone was skeptical of the idea of an Index Fund, because it gives investors only market returns, not spectacular returns above the market rate. People are greedy and just cannot take it that they are going to get average returns. They want the big returns that active management promises.

Fast forward to 2017 today, 42 years since the first US index fund was launched, we have more than 1000 index funds in the world tracking different indexes, excluding index ETF that trades on the stock exchanges. Funds managed by these passive investment products/tools surpassed the amount managed by the actively-managed investment funds - investors are pulling funds out of these funds fast and investing them into index funds. This happened because the active funds are no longer able to provide above market returns after cost. It is becoming better to be average than to be sub-par.

However, that is not to say that active investing is dead. While many have failed, there are also those that have succeeded and are still doing relatively well. George Soros, Carl Icahn and Warren Buffett are just some examples of people who did really well actively investing their money.

What is Active Investing?
Active Investing means actively looking for good companies to invest in, hoping that it will perform better than the market and hence earn you a higher return. You can do this yourself or by hiring a professional money manager to do the job for you.

Basically, you are looking at all the stocks in the market and looking for undervalued companies to buy or overvalued companies to sell short. Instead of buying the whole market and achieving average returns, you hope to get above market returns by identifying and buying those companies that will outperform the average.

What is Passive Investing?
Passive Investing means passively investing your money in buying the entire market via an index (think S&P500). You do not care how each stock performs and you do not really care which company makes it into the index and which are dropped. All you need to know is that over the long term, the stock market is and will go up and that your money will grow with it - just not at an above the market rate.

You can do this yourself manually, buying up all stocks in the index in the proportion of their market capitalisation (you have to be very very rich to do that) and re-balance it yourself every half year or you can just invest in an index fund that is managed by a group of professional managers who charge really low fees (because they don't really need to do much except re-balancing the fund every half year).

With Passive Investing, you are not trying to find the needle in the haystack, you are buying the whole haystack. Instead of looking for a really good company, you buy all the companies because the majority of them are going to do well that they will cover the bad ones and also make you good returns.

S&P500 price chart from 1950 to 2013
Are you now slightly convinced that Passive Investing works?

What are the differences?
Personally, these are the difference to me

Active Investing VS Passive Investing

Active Investing (Self)Passive Investing
Monitoring Consistently monitoring of
stock performance

See at the start and close of the
market OR
don't even look at the market at all

Strategy Research, buy, then sell when
the time is correct

Buy and hold until you need money
then you sell

Beat the market before cost
Beat the market after cost

Get market returns before cost
Less than 1% below market returns
after cost
Lifestyle Quite stressful, especially if
you are losing money on
your positions

Sleeps like a dead log because over
the really long-term, you know your
money will grow

Incur lots of trading cost
If you are investing with a
fund, they charge a 2% asset
management fee and a 20%
cut on your profits

Less than 1% of your assets' price
Have to do your own trading
research and analysis, hence
more effort

No effort other than finding a low
cost index fund provider

Which do we suggest?
I would like to quote from a famous fund manager Kenneth L. Fisher, who have written many New York Times Best Seller Investment Books: "Active if you know what you are doing, passive if you do not!"
That being said, a lot of you will think that because I have read so much and attended so many courses, I will know what I am doing.
Not to rain on your parade, but there has been research that says that monkeys throwing throws darts at random stock tickers could actually outperform experts financial managers (I'm serious, you can Google it).

Active Trading vs Long-Term Investing

Peek into the minds of some of the great investors in Singapore and learn from them their investing style, their investment criteria, and their views on investing!

Learning Points:
1) Is active trading more superior or is passive investing more superior?
2) What techniques should I use if I am an active trader?
3) What strategies should I use if I am a passive investor?
4) What is the risk for each of the techniques and strategies I use?
5) How can I improve my techniques and strategies?

Ronald K- Self-made millionaire investor
- Featured in Sunday Times twice for his approach to investing
Gabriel Yap - Executive Chairman of GCP Global
Kelvin Seetoh - Business Analyst of 81 Holdings

Event Details:
Date: 8 April 2016 (Saturday)
Location: MND Auditorium, 9 Maxwell Road, SG 069112
Time: 09.00AM  1.00PM (registration starts from 8.30AM)
Price: $10 

*Refreshments provided

Click HERE to sign up for the event!

Limited Seats Only! Sign Up Now!