Originated from “Will The Election Result Effect Stock Market?” I decided to make the title more proper now as only stock will be talk here.
From my many years of personal observation, as long as the exchange rate of US currency remained weak or depreciated, the international fund investors will likely to stay in Asia countries. This is because Asia had picked up from the economic crisis previously which is true.
Hence, retailer investors are advised to observe the exchange rate of US currency as a guide. I am not worried as long as US$ exchange to Sin$ kept below $2. Oil price is a worldwide event, hence the effect is no as great as before. My only worry is some unusual events popped out unexpectedly such as bird flu etc. That will act of God.
Few criteria for you to follows;-
1) Search for company that link their CEO wage packages that are linked to their companyÂ’s performance. Hence CEO must produce good result to give himself good wage packages.
2) Go for companies with good management only.
3) Go for companies that pay good divided every year, in case of any crisis, you still have dividends (in percentage form) as interest higher than bank deposite. All investments will have risks, hence ensure that during crisis, you still have growth in your investor.
4) Looking at dividends in currency form can be misleading as some shares are of high value but small dividends.
5) It is important that the percentage of the dividend payout from the revenue must be high, else the management shall only put the cash back to reserve for future expansion. This portion must no be used for paying fee to the management.
6) Look for companies that are less likely to be exposed to factors that are uncontrollable. I wouldnÂ’t name any here as it would offence others, you can use the above factors as a guide for your selection.
7) It will be more encouraging, if the management had declared a long concrete plan for issuing dividends say 10 years instead of year to year basis. However, one must remember to look at para 5 as a guide.
For those speculative investors, I still wish you all “good luck”.
For me, I will advise the real serious investor to "Kwa Lois Kwa Tiow Tiow, Long Zhong Bo Cha Seow"
I shall start naming those shares that had no dividends and low dividends issued to shareholders over a long period of time. Please contribute if you happened to know of such shares listed in SGX to alert fellow singaporean investors.