1H Challenges ?

Uncertain election outcome Challenge of US fiscal cliff Eurozone debt problems Company profit

 What is your Investment Strategy ? Asset Allocation and Asset Selection When to Buy ? When to Sell ? Timing ???

Invest in Which Counter ? When to Sell ?

Financial Goal

1) Death 2) Disability 3) Diseases

Wealth Allocation

Will & Trust

?
Present Age

Wealth Protection
1) Premature Death 2) Permanent Disability 3) Critical Illness

Retiring Age

$$$
4

LOSS OF INCOME

Wealth Distribution Will &Trust Wealth Accumulation Education Plan

Protection
Mortgage Protection Disability Insurance Critical Illness Medical Insurance

Protection

Wealth Protection

Living Needs
5

Case Study 5
What factors should be considered in setting the investment objectives of a portfolio?

Case Study Factors to be taken into account include: Proposed purpose of the portfolio Size of the portfolio Preference or desires of investors Long-term or short-term return expectations Levels of reserves (liquidity) to be kept readily available Level of earnings to be reinvested in the portfolio or withdraw

Case Study Factors to be taken into account include: Return performance expectations Return out-performance margins over chosen benchmarks Acceptable level of under-performance in relation to benchmarks Uncertainty of any projections made in respect of risk or return Limited value of historical data

Case study : Liquidity and Asset Pricing

Liquidity involves trading costs, ease of sale, necessary price concessions to effect a quick transaction, market depth, price predictability.

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Fiscal Cliff
In the United States, the fiscal cliff is the sharp decline in the budget deficit that could have occurred beginning in 2013 due to increased taxes and reduced spending as required by previously enacted laws. The deficitthe amount by which government spending exceeds its revenuewas projected to be reduced by roughly half in 2013. The Congressional Budget Office (CBO) had estimated that the fiscal cliff would have likely led to a mild recession with higher unemployment in 2013, followed by strengthening in the labor market with increased economic growth
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Quantitative easing (QE)

http://en.wikipedia.org/wiki/Quantitative_easing

Quantitative easing (QE) is an unconventional monetary policy used by central banks to stimulate the national economy when conventional monetary policy has become ineffective. A central bank implements quantitative easing by buying financial assets from commercial banks and other private institutions, thus creating money and injecting a predetermined quantity of money into the economy. This is distinguished from the more usual policy of buying or selling government bonds to change money supply, in order to keep market interest rates at a specified target value. Quantitative easing increases the excess reserves of the banks, and raises the prices of the financial assets bought, which lowers their yield.
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 Expansionary monetary policy typically involves the central bank buying short-term government bonds in order to lower short-term market interest rates. However, when short-term interest rates are either at, or close to, zero, normal monetary policy can no longer lower interest rates. Quantitative easing may then be used by the monetary authorities to further stimulate the economy by purchasing assets of longer maturity than only shortterm government bonds, and thereby lowering longerterm interest rates further out on the yield curve.
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 Quantitative easing can be used to help ensure inflation does not fall below target. Risks include the policy being more effective than intended in acting against deflation leading to higher inflation, or of not being effective enough if banks do not lend out the additional reserves.

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QE3
QE3 was announced on 13 September 2012. In an 11-to-1 vote, the Federal Reserve decided to launch a new $40 billion a month, openended, bond purchasing program of agency mortgage-backed securities and also to continue extremely low rates policy until at least mid-2015. . According to NASDAQ.com, this is effectively a stimulus program which allows the Federal Reserve to relieve $40 billion dollars per month of commercial housing market debt risk with no maximum amount or time limit. Egan-Jones Ratings Company said it believes the Feds decision will hurt the U.S. economy and, by extension, credit quality. As a result the firm once again slashed the U.S. bond rating bringing it down to AA-. Federal Reserve chairman Ben Bernanke acknowledged concerns about inflation.[64]

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2004 General Election

2008 General Election

Conclusion

Buying is Easy Selling is an Art Experience + Knowledge + Ready + Emotion = Returns $$$

Q&A

Thank You
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