View Full Version : QE has ended
QE has officially ended. No more easy and hot money.
Interests are expected to stay low for a while more.
Does that translate to increase in property prices?
Does that translate to increase in property prices?
Do you think it will cause increase in property prices?
My opinion is the reverse, though China banks are a huge threat still because of some of the ways they deal with credit as seen in articles sent by Archachon.
QE ended means lesser excuse for hot money flowing worldwide.
Interest rate doesn't affect SG much because the TDSR supersedes it.
Does that translate to increase in property prices?
Can u kindly enlighten me how will the property price increase? As far as I know, QE ends is not a good thing right? If QE ends means property price increases then I think another round of CM will be introduced which I don't think the GOV wants as they are gearing up for the GE2016. Am I right?
QE ending may affect long-term borrowing rates.
For the typical Singapore mortgages with Sibor/SOR fixing, no effect.
The event ro look out for the Singapore mortgage payers is when Fed starts hiking fed fund rate next year Sep (which market is pricing it).
Sorry i thought Mr Kelonguni state interest rate will go low. I guess he means interest in buying prooperty will go low
QE ending may affect long-term borrowing rates.
For the typical Singapore mortgages with Sibor/SOR fixing, no effect.
The event ro look out for the Singapore mortgage payers is when Fed starts hiking fed fund rate next year Sep (which market is pricing it).
May I know why it does not affect our singapore mortages rates?
smellyfish
30-10-14, 11:33
The intended effect of QE is to create a ready buyer of US t bills, and that in turn drives yield very low (because Fed will buy at whatever yield). As a result, interest rates which have a direct relation with bond yield (and inverse relation with bond price) can stay low. conversely, removing QE will move bond yield upwards and will actually start moving US interest rates up.
the interest rate that Fed promise to keep low is the rate that Fed charges to banks when they borrow from Fed. That interest rate actually have a lesser corelation to commercial interest rate charged for housing loans etc than the bond yield.
The motivation behind removing this QE is because FED feels economy is picking already. With US economy picking up, what does it translate to their global business, how does it has implication on our economy then? How will a good US economy result in their staff movement overseas? Especially to Singapore?
Will property price goes up or down in an improving economy?
The motivation behind removing this QE is because FED feels economy is picking already. With US economy picking up, what does it translate to their global business, how does it has implication on our economy then? How will a good US economy result in their staff movement overseas? Especially to Singapore?
Will property price goes up or down in an improving economy?
The easiest indication to determine property price direction is to ask yourself if u have more cash stashed up in your bank account now than ever before and u ask others the same question. If more people can say they have more cash now, probably property will remain steady or trending upward.
The easiest indication to determine property price direction is to ask yourself if u have more cash stashed up in your bank account now than ever before and u ask others the same question. If more people can say they have more cash now, probably property will remain steady or trending upward.
What I am unsure of is whether these few years of good cash has anything to do with QE over the last 6 years. If so, the road forward will be very interesting.
The easiest indication to determine property price direction is to ask yourself if u have more cash stashed up in your bank account now than ever before and u ask others the same question. If more people can say they have more cash now, probably property will remain steady or trending upward.
I have more cash stashed up as the TDSR and ABSD has prevented me from going in to shop 1 more unit.
The motivation behind removing this QE is because FED feels economy is picking already. With US economy picking up, what does it translate to their global business, how does it has implication on our economy then? How will a good US economy result in their staff movement overseas? Especially to Singapore?
Will property price goes up or down in an improving economy?
The world is moving towards fragmented monetary policy actions. EU and Japan prob keeping its zero rate running, while UK and US moving towards rate hike in next year end.
China is prob keeping accomodative monetary policy to boast weak economy.
Singapore interest rate will move in tandem with US rate hike, but Singapore economy is not going to improve as well as US due to ongoing restructuring not bearing fruits.
The best outcome for this QE Ending is to prompt the gov to remove TDSR and ABSD. Over the 2 years cash has been piling up, coupled with the possible dip in price by guniang sellers (borrowed phrase from Bro BJ), I hope to go shopping for more property.
The easiest indication to determine property price direction is to ask yourself if u have more cash stashed up in your bank account now than ever before and u ask others the same question. If more people can say they have more cash now, probably property will remain steady or trending upward.
That is interesting qns
If i say that by 2016 end, you can earn risk-free in US bond yields at 4% or more, why risk your capital to invest in property yielding at a lower rate?
The world is moving towards fragmented monetary policy actions. EU and Japan prob keeping its zero rate running, while UK and US moving towards rate hike in next year end.
China is prob keeping accomodative monetary policy to boast weak economy.
Singapore interest rate will move in tandem with US rate hike, but Singapore economy is not going to improve as well as US due to ongoing restructuring not bearing fruits. Make senese. How will the formation of Asian Infrastructure Investment Bank (AIIB) have implication on the interest rate? Singapore is a founding member too.
That is interesting qns
If i say that by 2016 end, you can earn risk-free in US bond yields at 4% or more, why risk your capital to invest in property yielding at a lower rate?
The greatest trick the Devil (inflation) ever pulled was convincing the world he (inflation) didn't exist.
SGX reacted neutral to the QE ending.
That is interesting qns
If i say that by 2016 end, you can earn risk-free in US bond yields at 4% or more, why risk your capital to invest in property yielding at a lower rate?
Leverage.
For the Taiwan rich, they need only 1 % down payment.
In the US before the crisis, they have cash back when buying property.
Make senese. How will the formation of Asian Infrastructure Investment Bank (AIIB) have implication on the interest rate? Singapore is a founding member too.
I think no impact as AIIB is to provide financing, not to conduct monetary policy operations like QE
The greatest trick the Devil (inflation) ever pulled was convincing the world he (inflation) didn't exist.
Point taken - property is a good hedge against inflation
invigorated
30-10-14, 18:15
Point taken - property is a good hedge against inflation
Provided it's bought at the right time? Holding onto a home with falling prices and rising interest rates causing a loss in interest earnings and having to pay more interest can be a triple whammy.
Allthepies
30-10-14, 18:28
At least half of my friends are waiting to purchase the next property, u can guess how much cash are currently rotting in the banks : )
Wow, got lots of rich friends, mine lots of them asking for OT on weekend.
Provided it's bought at the right time? Holding onto a home with falling prices and rising interest rates causing a loss in interest earnings and having to pay more interest can be a triple whammy.
People who invest in properties tend to plan for their finances well ahead, they also tend to be conservative. Property investors using the power of leverage actually able to accumulate cash faster because of the rental income. To prove my point, u can ask your property investor friends who owns multiple properties if they have less cash or more cash now.
More cash due to need to have at least 6 month of rental income per property.
Asset Rich Cash Poor are normally those who own one property.
There are expectation, where Asset Poor Cash Rich who own one property.
People who invest in properties tend to plan for their finances well ahead, they also tend to be conservative. Property investors using the power of leverage actually able to accumulate cash faster because of the rental income. To prove my point, u can ask your property investor friends who owns multiple properties if they have less cash or more cash now.
To balance the view a little, it is usually a combination of several years of servicing plus rental income plus property price appreciation that makes these multiple property owners cash rich.
My friend's brother in law has held to sell away properties to keep up with mortgages sometime in early 2000s.
Another of my friend who has started servicing his mortgage as his newly added unit TOP. Cash flow position is actually rather negative due to maintenance charges as well, but he has a huge salary so no problem.
The main question: does property always (note: always) make one rich, or people with high incomes tend to buy property? Food for thought.
To balance the view a little, it is usually a combination of several years of servicing plus rental income plus property price appreciation that makes these multiple property owners cash rich.
My friend's brother in law has held to sell away properties to keep up with mortgages sometime in early 2000s.
Another of my friend who has started servicing his mortgage as his newly added unit TOP. Cash flow position is actually rather negative due to maintenance charges as well, but he has a huge salary so no problem.
The main question: does property always make one rich, or people with high incomes tend to buy property? Food for thought.
Do a spreadsheet and you will find the answer..... I found mine when I was 27.
Many just imagine.... They don't even do a do fact sheet.... Do it and you will find your answer....
Indomie has the answer.... Arcachon also has the answer... And so has many who shared....
Others are still searching....
More cash due to need to have at least 6 month of rental income per property.
Asset Rich Cash Poor are normally those who own one property.
There are expectation, where Asset Poor Cash Rich who own one property.
Property investor has more cash because:
1. More stingy with money
2. Has less desire to buy expensive clothes and cars
3. Not required to spend expensive gifts to impress woman, all u need to do just mention all the properties u own
4. Work harder in the office because we are more motivated to get promoted
5. We receive 2 months security deposit from tenant.
Do a spreadsheet and you will find the answer..... I found mine when I was 27.
Many just imagine.... They don't even do a do fact sheet.... Do it and you will find your answer....
Indomie has the answer.... Arcachon also has the answer... And so has many who shared....
Others are still searching....
Bro, I have already done the calculations in spreadsheet and also collecting rent currently.
Property investment makes long term sense for people of certain income level. But we cannot assume it to be so and the only way for all. The huge run up in the least few years has made a fortune for many including myself, and provided a sense of unbeatable euphoria, but we really should be a little more cautious threading forward in current climate at least over the next couple of years.
Bro, I have already done the calculations in spreadsheet and also collecting rent currently.
Property investment makes long term sense for people of certain income level. But we cannot assume it to be so and the only way for all. The huge run up in the least few years has made a fortune for many including myself, and provided a sense of unbeatable euphoria, but we really should be a little more cautious threading forward in current climate at least over the next couple of years.
Buying investment properties motivate one to work harder.... Going into debt makes one more hard working.... Not debt = complacency..... If one is happy at where one is, it is ok.... Different stroke for different people....
Cheers....
Btw, just calculate how much mortgage left if you rent out for 30 years w/o capital gains....
If buying property evoke stress, one should not buy.... If it makes one have sleepless nights, don't buy.... If it starts a quarrel between spouse, don't buy.... If the job is uncertain, don't buy....
Private only constitute 20% of total housing... It is not for everyone.... Especially those who are pessimistic....
Buying investment properties motivate one to work harder.... Going into debt makes one more hard working.... Not debt = complacency..... If one is happy at where one is, it is ok.... Different stroke for different people....
Cheers....
Btw, just calculate how much mortgage left if you rent out for 30 years w/o capital gains....
Let me see.
Flat Type 5-Room
Flat Model Improved
Date Of Application 25 Oct 1993
Date Of Purchase 01 Nov 1995
Purchase Price $225,600
Outstanding Balance $ 61,437.96 as at 29 Oct 2014
Buy HDB 5 Room in 1995 for SGD 248,160, loan SGD 200,000. since 01 Nov 1995 after 19 years 31 Oct 2020 (25 yrs loan max)
Monthly Instalment = $ 923.00
173,320.72 74,860
Accrued interest as at SEP 2014 $ 58,086.92 27,646.97
Total principal amount withdrawn and accrued interest $ 231,407.64 102,506.97 = 333,914.61
Let me see.
Flat Type 5-Room
Flat Model Improved
Date Of Application 25 Oct 1993
Date Of Purchase 01 Nov 1995
Purchase Price $225,600
Outstanding Balance $ 61,437.96 as at 29 Oct 2014
Buy HDB 5 Room in 1995 for SGD 248,160, loan SGD 200,000. since 01 Nov 1995 after 19 years 31 Oct 2020 (25 yrs loan max)
Monthly Instalment = $ 923.00
173,320.72 74,860
Accrued interest as at SEP 2014 $ 58,086.92 27,646.97
Total principal amount withdrawn and accrued interest $ 231,407.64 102,506.97 = 333,914.61
My calculations are not far off, better in fact.
But do try the same calculations for a 500k HDB bought today.
Ok, now after 19 years, not staying in HDB.
Rent out for SGD 2500 x 12 = 30,000. a year.
Lease balance 2014-1997=82.
Rental no change for 82 years = 82x30,000 = SGD 2,460,000.
So do I sell now for SGD 640,000 or collect rental.
https://www.dropbox.com/s/ggv7e5gusan8es0/3%20plus%201%20plan.pdf?dl=0
invigorated
31-10-14, 00:03
People who invest in properties tend to plan for their finances well ahead, they also tend to be conservative. Property investors using the power of leverage actually able to accumulate cash faster because of the rental income. To prove my point, u can ask your property investor friends who owns multiple properties if they have less cash or more cash now.
There's no doubt that savings will grow with rising affluence. Though we do make decisions based on numbers, there's an emotive factor to it as well. That's the reason why when prices crash, not everyone will rush in to buy even if they have the cash for it.
These people who are sitting on more cash are buying now? If they are accumulating cash, it's because of the measures? If it is and measures don't change, will they still buy? They will only buy when price drops and prices are lowered? Then would prices drop and then be supported by them only after that? If so, wouldn't there be a meaningful correction that the govt is looking at?
There's no doubt that savings will grow with rising affluence. Though we do make decisions based on numbers, there's an emotive factor to it as well. That's the reason why when prices crash, not everyone will rush in to buy even if they have the cash for it.
These people who are sitting on more cash are buying now? If they are accumulating cash, it's because of the measures? If it is and measures don't change, will they still buy? They will only buy when price drops and prices are lowered? Then would prices drop and then be supported by them only after that? If so, wouldn't there be a meaningful correction that the govt is looking at?
A real investor = one with sufficient cash for investment at the right time
I believe most of the real property investors here are waiting for prices to drop so they can make a fast buck. Very few (stupid ones) I know will not take advantage of a declining market. Emotive factor is one thing, but investing is another. Most real property investors will not act according to their emotions, as that's the basic rule of investing. So I believe most will go in at the right time. When's the right time? I believe each of us here has a different gauge, with our success depending on it. If you're good at reading the market, you will make a fast buck!
Now, let's us talk about the remaining 80%. Nothing can save the property market and I believe it will continue to decline from here. The rich investors does not have the ability and will not save a falling market. Because cash rich investors are the minorities (that's how they can become rich... rich people become rich by exploiting many more people). The masses are the ones who have the ability to move the market and since they aren't savvy they are in worse position. Most youngsters I know have zero or little savings. A real investor would not want to catch a falling knife when the correction is imminent. We all know the market would drop because of the blind majorities. There's a saying that when you hear all the aunties in the wet market buying stocks it's time you get out because that's the perfect indication of a bubble. The majorities will always be herd followers and will bear the brunt of a falling market so that the smart and rich ones can make more money. Goes the saying that the rich gets richer.
So to all of you here, the termination of QE is just the beginning. There's alot more room to go in terms of price crashing and I believe the real investors are just waiting for this day to come. The silly ones will be the ones hoping that prices will not fall because they have exhausted all their cash.
The rich investors does not have the ability and will not save a falling market. Because cash rich investors are the minorities (that's how they can become rich... rich people become rich by exploiting many more people).
This one I don't agree, the first step to being rich is yourself.
If you think money is all evil, the rich exploiting many more people, you will be blinded and you will not act.
Everyone know what is money, how many care to understand how money work.
There are rich who are evil and there are rich who help others.
How many care to understand QE, ECB printing money, Japan printing money, China printing money, in fact the whole world is printing money.
To do nothing and say "the rich exploiting many more people" you are just giving excuse why you do not have and not how others have.
The world information is now at your finger tip and how many care to use their finger to learn than to be entertained.
I know nut about money until I am in the last 40's, always wonder how people buy million dollar property with just their income and never think "the rich exploiting many more people".
https://www.youtube.com/watch?v=wFJl4muI4Og&list=UUKQVSNdzGBJSXaUmS4TOWww
This one I don't agree, the first step to being rich is yourself.
If you think money is all evil, the rich exploiting many more people, you will be blinded and you will not act.
Everyone know what is money, how many care to understand how money work.
There are rich who are evil and there are rich who help others.
How many care to understand QE, ECB printing money, Japan printing money, China printing money, in fact the whole world is printing money.
To do nothing and say "the rich exploiting many more people" you are just giving excuse why you do not have and not how others have.
The world information is now at your finger tip and how many care to use their finger to learn than to be entertained.
I know nut about money until I am in the last 40's, always wonder how people buy million dollar property with just their income and never think "the rich exploiting many more people".
Just think of stock trading. If you don't buy low and sell high, then how you make money? Remember after you sell high, many more people after you will be trapped holding worthless stocks. In order to earn money, someone else have to give.
Wonder why the wealth gap in US, India, China, Singapore are so high? Nobody said rich investors are evil, just that they make use of the more mentally challenged people to make money.
How did Mark Zuckerberg make his money? From those who bought into his company. You give, I take. But in order to make it rich, I have to take from many more people.
Nothing is free in this world and not even money printing (US PPP declined with the dollar during QE so millions of American had paid the price). Money can be converted from something else but not created. Money has to come from somewhere and stupid people will loose more to the rich.
Just think of stock trading. If you don't buy low and sell high, then how you make money? Remember after you sell high, many more people after you will be trapped holding worthless stocks. In order to earn money, someone else have to give.
Wonder why the wealth gap in US, India, China, Singapore are so high? Nobody said rich investors are evil, just that they make use of the more mentally challenged people to make money.
How did Mark Zuckerberg make his money? From those who bought into his company. You give, I take. But in order to make it rich, I have to take from many more people.
Nothing is free in this world and not even money printing (US PPP declined with the dollar during QE so millions of American had paid the price). Money can be converted from something else but not created. Money has to come from somewhere and stupid people will loose more to the rich.
Interesting logic.
1. Stock trading, I brought SBS shares in the 80's because I need the Bus Card for monthly season bus stamp for unlimited travel on SBS Bus for SGD 4000. 10 years later I sold it for SGD 10,000. wonder who have to give. The company over the years have been making profit not from transporting people but from the Bus advertisement.
2. How people make money from mentally challenged people ?????
3. Mark Zuckerberg create facebook because he saw something other don't, facebook make money by selling advertisement and people buy his share, wonder how to take from many more people ?????
4. Money printing nowadays don't need ink and paper, you just need to key into the Bank computer system and money is created. I brought a 2 Bedroom for SGD 535,000 in 2006 the Bank email to me whether I am interested to loan more because my unit is value at SGD 1,550,000 in 2011. A million dollar is created wonder where this money came from and who loose it. I use to think someone deposit money in the Bank and other loan from the deposit, I was wrong the Bank don't need deposit to loan they just create the money. The government have to use TDSR in order to control the bank lending.
1. Low risk lower gains, but stable.
4. Take it as gain for risks taken. Inflation, QE, low interest rates etc.
Interesting logic.
1. Stock trading, I brought SBS shares in the 80's because I need the Bus Card for monthly season bus stamp for unlimited travel on SBS Bus for SGD 4000. 10 years later I sold it for SGD 10,000. wonder who have to give. The company over the years have been making profit not from transporting people but from the Bus advertisement.
2. How people make money from mentally challenged people ?????
3. Mark Zuckerberg create facebook because he saw something other don't, facebook make money by selling advertisement and people buy his share, wonder how to take from many more people ?????
4. Money printing nowadays don't need ink and paper, you just need to key into the Bank computer system and money is created. I brought a 2 Bedroom for SGD 535,000 in 2006 the Bank email to me whether I am interested to loan more because my unit is value at SGD 1,550,000 in 2011. A million dollar is created wonder where this money came from and who loose it. I use to think someone deposit money in the Bank and other loan from the deposit, I was wrong the Bank don't need deposit to loan they just create the money. The government have to use TDSR in order to control the bank lending.
The only reason I'm into property is ability to leverage and use people's money to pay for the mortgage. The last few years were the best, should I say golden years in my pty investment history, due to ultra low interest rates. Having said that, other forms of non-leveraged investment is still necessary.
Well said!
That is why govt should control HDB flats' prices from the start with all sort of cooling measures when property hots up instead of target private property and their prices, and letting HDB flats prices run out of control! :doh:
If buying property evoke stress, one should not buy.... If it makes one have sleepless nights, don't buy.... If it starts a quarrel between spouse, don't buy.... If the job is uncertain, don't buy....
Private only constitute 20% of total housing... It is not for everyone.... Especially those who are pessimistic....
QE end and interest to raise very slowly (as Fed said) means US stock prices will FLY FLY FLY! Target S&P at least 2200 by end of next year!
You will see............................
However, QE ending coupled with tightening of foreigners into Singapore, costs inflation, TDSR, ABSD, etc means those MASS MARKET private condos will be in for a HARD TIME!
Also standard of living for Singaporeans will go down the drain as developers will try to make their private properties "more affordable" by building smaller and smaller sizes and "eating" up your usable space (via BIG BIG balcony, air-con ledge, BIG BIG your own private lift lobby area etc!), while buyers will try to save on ABSD, try to overcome TDSR by buying smaller size units etc!
We will see soon....................................
Can u kindly enlighten me how will the property price increase? As far as I know, QE ends is not a good thing right? If QE ends means property price increases then I think another round of CM will be introduced which I don't think the GOV wants as they are gearing up for the GE2016. Am I right?
Policy within singapore control our dear Tharman bbrother will act on it. Dont worry.
Quantitative easing: giving cash to the public would have been more effective
The impact of quantitative easing was blunted by unconventional monetary policies and conservative fiscal policies
Janet Yellen, Ben Bernanke's successor, has called time on quantitative easing in the US.
It’s 2008. Your name is Ben Bernanke, the world’s most powerful central banker. The world’s financial system is going through its own version of the China Syndrome. Do you: a) do nothing and trust the self-correcting properties of capitalism; b) cut interest rates as far and as fast as you can in the hope that cheap money will avert catastrophe; or c) go for broke by trying something different?
Bernanke, an expert on the 1930s, chose c). He embraced the idea of quantitative easing, which involves increasing the money supply in order to stimulate economic activity. The Bank of England quickly followed suit. Neither Bernanke nor Mervyn King wanted to be known as the central banker who failed to prevent a deep recession becoming a second Great Depression.
The decision by Bernanke’s successor, Janet Yellen, to call time on QE is an appropriate juncture to ask some fundamental questions. Has QE worked? Does it mean the end of economic stimulus? Who really gained from the policy? Were there any better alternatives?
The answer to the first question is that QE has worked, up to a point. Sure, this has been a tepid recovery in the US and a non-existent recovery in Europe, but the outcome would almost certainly have been a lot worse had central banks not augmented ultra-low interest rates with their money creation programmes. The comparison between the US and Europe is telling: monetary policy has been far more proactive and expansionary in the US than it has been in the eurozone, which helps to explain the disparity in growth and unemployment rates.
It is also the case, though, that the impact of QE has been blunted in the US and the UK by the combination of unconventional monetary policies with conservative fiscal policies. There has been a tug of war between stimulus and budgetary austerity.
The unspectacular recovery means that stimulus policies will continue. Even though the UK and the US are posting annual growth rates of around 3%, there is no hurry to start raising interest rates. Many financial analysts suspect that central banks will never reverse QE by selling the bonds they have bought.
QE has also had unforeseen side-effects. The policy involved allowing banks and other financial institutions to exchange bonds for cash, and the hope was that this would lead to improved flows of credit to firms looking to expand. In reality, it encouraged financial speculation in property, shares and commodities. The bankers and the hedge fund owners did well out of QE, but the side-effect of footloose money searching the globe for high yields was higher food and fuel prices. High inflation and minimal wage growth led to falling real incomes and a slower recovery.
QE could have been better designed. There could have been a better dove-tailing of monetary (interest rates and QE) and fiscal (tax and spending) policies. There was a strong case for the targeting of QE at specific sectors of the economy, such as green infrastructure. In retrospect, far too much faith was put in the banks to channel QE to where it was needed. Handing a cheque directly to members of the public would have got money into the economy much more effectively.
Central banks have always been wary of “helicopter money” on the grounds that QE is temporary while giving cash to the public is permanent. But the temporary has become permanent. What was once unconventional has now become conventional. So much so that even the European Central Bank is toying with the idea. Perish the thought, but imagine there is a second global financial crisis as bad as the first. Would policy makers look at alternatives to plain vanilla QE? Almost certainly, yes.
Some more information: http://www.bbc.com/news/business-29778331
Nvm one qe ends Japan expand another
US QE ended but Japan started again.
European Stocks Rally After Bank of Japan Boosts Stimulus
By Sofia Horta e Costa Oct 31, 2014 4:25 PM GMT+0800
European stocks rose, paring their biggest monthly loss since June 2013, amid optimism the Bank of Japan’s stimulus will fill some of the gap left by the end of Federal Reserve bond buying. U.S. index futures and Asian shares also rallied.
The Stoxx Europe 600 Index gained 1 percent to 334.13 at 8:13 a.m. in London. BNP Paribas (BNP) SA led lenders higher, as all 19 industry groups on the gauge climbed. The equity benchmark has lost 2.6 percent in October amid concern the European Central Bank’s asset purchases will not be enough to revive the region’s economy. With the Federal Reserve ending purchases this month, investors are turning to Europe and Japan for stimulus.
The Bank of Japan unexpectedly boosted its stimulus plan, raising its annual target for monetary expansion to 80 trillion yen ($721 billion), up from 60 to 70 trillion yen. An increase was predicted by just three of the 32 analysts surveyed by Bloomberg News. The central bank also said it will boost exchange-traded fund purchases to 3 trillion yen.
“Markets don’t really seem to care about what kind of stimulus we get or where it’s coming from, as long we get something,” said Teis Knuthsen, chief investment officer at Saxo Bank A/S’s private-banking unit. “Central banks are trying to squeeze money into the system and as long as economic growth is good enough, all that money will be going into financial assets. What happened in Japan is very powerful for equities, and it’s really rippling throughout global markets.”
Nvm one qe ends Japan expand another
Allthepies
31-10-14, 17:23
Wow, got lots of rich friends, mine lots of them asking for OT on weekend.
On the contrary all are rank and file...
Scary that rank and file also hold so much liquidity...
Stimuli never end haha.
Let us continue to celebrate stock gains and later property gains!
On the contrary all are rank and file...
Scary that rank and file also hold so much liquidity...
When it come to property investment, it is the know and don't know that decide who buy and who don't.
The only reason I'm into property is ability to leverage and use people's money to pay for the mortgage. The last few years were the best, should I say golden years in my pty investment history, due to ultra low interest rates. Having said that, other forms of non-leveraged investment is still necessary.
I got the same impression of using "Others people money" OPM when I buy property until I find out how Bank create money.
"Others people money" OPM are basically a scam to tell the world how money work, the real facts is, it is created through thin air.
It is not easy to believe after all this years of brain washing that you deposit money in the Bank, the Bank than loan out the money.
Taiwan is a very good example of how money work right now.
https://www.youtube.com/watch?v=1rHWiqbTY1o
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