Sandra Teo
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Top Contributor (Apr)

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  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
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    Top Contributor (Apr)

    Level 6. Master
    Answered 4w ago
    Hello! The main reasons include different capital intensity levels between industries and whether the nature of the business makes carrying a high level of debt relatively easier to manage. Capital-intensive industries, such as oil, gas or telecommunications, require significant financial resources and large amounts of money to produce goods or services. If a company's performance is not subjected to fluctuation accordingly to the economy, it tends to be able to carry larger amounts of debt at a lower risk. For instance, industries that have a stable demand for their goods and services such as utilities, manufacturing tend to have higher debt-to-equity ratios.
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
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    Top Contributor (Apr)

    Level 6. Master
    Answered 4w ago
    Hi there! Watches are a good investment but like investing in alternative investments such as cars, wine, art or any other tangible asset, it takes real expertise to make a profit. The secret to successful investment in watches is knowing which watches can be acquired below the retail prices, increasing their capital gains from reselling the watch. One advantage of investing in watches is their low correlation to other financial markets, such as stocks and bonds. A stock market crash would not directly impact the value of your watch and their value will hold. In investing in watches you would want to consider several aspects that play an important role. This includes brand recognition , heritage , exclusivity , availability and most importantly the appreciation of the watch's value over time. While Rolex is one of the brands highly demanded, has a wonderful heritage and high level of recognition, it is widely available. Comparably, Patek Philippe is more or less similar to Rolex except for its accessibility due to their higher price tags compared to Rolexes. Other brands with a high demand include breitling, Omega, Audemars Piguet, Cartier, Panerai, Jaeger-LeCoultre and IWC. Apart from the brand, watches that tend to appreciate over time are the all-time classic (or also known as "iconic" watches).
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
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    Top Contributor (Apr)

    Level 6. Master
    Answered on 19 Apr 2019
    Hello! Personally, I would pick Amazon. Amazon has the highest potential for long-term growth in terms of its strategic positioning. Google is an information-based company, therefore making it heavily influenced by change such as changes in technology, fashion, style, politics. Amazon is present in the physical world of products, warehouses, server farms and others. These things are much more difficult to recreate and as such provide stability. These things demand a real-world practicality and skill in day-to-day satisfaction of customers as well as technological expertise. This constrains Amazon's behavior in a very practical way that is to focus on its customers rather than extraneous philosophical issues. Amazon aims to make all of its business customer-centric, a goal that will only benefit the company. Amazon recently ventured into food distribution and they are already owning over 60% of online sales. Alibaba and Amazon, the two big giants of the ecommerce industry although have many features in common, there are significant differences. Amazon's revenue comes from electronic products and merchandises and digital media content whereas a bulk of Alibaba's revenue comes from indirect sales through its most profitable marketplace, Taobao. Amazon has an edge as it operates on a managed online platform that looks similar to a traditional store but stays online. This provides Amazon with the control over customer experience.
  • Asked by Anonymous

    Sandra Teo
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    Top Contributor (Apr)

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    Answered on 19 Apr 2019
    Hello! Bond immunization is an investment strategy used to minimize the interest rate risk of bond investments by adjusting the portfolio duration to match the investor's investment time horizon. It does this by locking in a fixed rate of return during the time the investor plants to keep the investment without cashing it in. Typically, when interest rates increase, bond prices decrease. An immunized bond portfolio gives the investor a specific rate of return regardless of what happens to the interest rate during the time period. In other words, the bond is "immune" to fluctuating interest rates.
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
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    Top Contributor (Apr)

    Level 6. Master
    Answered on 19 Apr 2019
    Hello! It depends on what you're trying to achieve. If you are taking a short term perspective or trying to do intraday trading, Technical Analysis will serve the purpose. On the other hand, if you are investing for long term, you need to consider the fundamentals of the stock in question. For that, Fundamental Analysis serves the purpose. You can still use Technical Analysis here for decuding entry/exit points. In short, For Trading: Technical Analysis For Investing: Fundamental Analysis
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
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    Top Contributor (Apr)

    Level 6. Master
    Answered on 19 Apr 2019
    Hi there! Some red flags I would look out for include 1) Turnover of CFO , 2) high profits, low cashflow, 3) frequent, non-recurring gains (or losses) 1. Turnover of CFO The turnover rate of CFO could give insights into how the finances of the company is panning out. The CFO has first-hand information about where the revenues are generated, where the outflows are, what the ROI is and how the resources are allocated. A CFO quiting could potentially mean the company is headed for disaster or that the company is doing something behind the scene that requires some scrutiny. 2. High profits, low cash flow A profitable company with insufficient cashflow can put the company at risk of bankruptcy. For example, Toys "R" Us initially was a profitable business however year or year it had an increasing cash outflow required to service its interest payments. Due to the huge interest payment and decreasing sales, the firm was forced into bankruptcy. 3. Frequent, non-recurring gains Non-recurring gains and losses should not occur frequently because they do not relate to normal business operations. If there is a trend of non-recurring gains and losses, it could be that the company is finding ways to write off or write down transactions to make the business look a certain way.
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
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    Top Contributor (Apr)

    Level 6. Master
    Answered on 19 Apr 2019
    Hello! Here are some characteristics for comparison! Liquidity Physical properties tend to more illiquid meaning it would take a longer time to liquidate it and receive cash. Stocks on the other hand can be easily liquidated due to the active buying and selling of stocks. Volatility Physical property prices do not fluctuate as much as stock prices do according to market news or market sentiments. Capital Physical properties tend to require large amount of capital, so if you are tight on cash, it would be a better option to invest in stocks. Diversification Typically, investing in physical properties do not offer much diversification (due to large cost of capital it is difficult to invest in a a variety of properties).
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
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    Top Contributor (Apr)

    Level 6. Master
    Answered on 16 Apr 2019
    Hello! In a bear market, the safest strategy is to hold cash or invest in stable financial instruments such as short-term government bonds. This is an extreme method, and not often used. Investors usually take a defensive strategy by investing in defensive stocks , which are often large companies with strong balance sheets and long operational history. These companies have strong financial position that will allow them to meet ongoing operational expenses and thus survive the downturn. I would avoid small growth companies because they have lack the financial security required to survive downturns. By nature, the financial markets are impacted by a recession. Therefore, investors may want to invest in sectors that thrive on recession, such as consumer staples and commodities. Consumer staples are typically the last products that a household removes from its budgets, therefore making it one of the safest. As economies slow, demand slows and commoditiy prices tend to drop. If investors believe a recession is coming, they'll often sell commodities, which drives prices lower. However once the economy moves into recovery phase, the growing economy would need inputs including natural resources. These needs grow as economic output grows, therefore pushing up the prices for such resources.
  • Asked by Anonymous

    Sandra Teo
    Sandra Teo
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    Top Contributor (Apr)

    Level 6. Master
    Answered on 16 Apr 2019
    Hello! Here is a blog post by seedly comparing roboadvisor and financial advisor! https://blog.seedly.sg/choosing-a-financial-advisor-robo-advisors-vs-human-advisors/ Typically, roboadvisors are known to be cheaper due to the low management fees (many 0.50% or less) and low account minimums. This is great for millennials or people on tight budgets who cannot ordinarilty afford to invest.
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