Stupid Ways To Know When The Stock & Property Market Going To Tank

Posted by Kris | Monday, February 07, 2011 | | 0 comments »

Below are of my opinion only, and based on my observations. There is a general saying that the bull market is going to end when the aunties and taxi drivers starts to recommend stock for you to buy. Here is my own observations on the stock market as the bear market for property has yet to happen.

Stock Market HOT
- A-lot of local brokerages are doing roadshows giving overviews on the stock market in general. Their objective is to encourage more retailers to open brokerage accounts for trading. They are usually teamed up with the technical analyst providers/trainers, where these FREE seminars are usually is a pre-view to their courses. You need to pay more $$$ to attend the "REAL" training courses.  During the last bull market, it seems that every weekend there is a seminar by one of the local brokerage houses that is held at 5-Star Hotels. With the free good food and drinks, a lot of newbies and retailers will attend the events. The important part to note that during the bull market, the organizers are very willing to fork out alot of money to provide quality food (I meant like cakes, buffet style lunch, etc).

Stock Market COLD
The frequency of events starts gets lesser and lesser until you never heard any events held by the local brokerage firms. If there any, there is no longer free good food and drinks for the participants. Plus, if there is any, the food served is just a simple fried rice and

I assumed the same indicator will apply to the property investment. Already I got a few emails on future property investment talks sent out by my friends. As the property investment market usually SUPER DUPER LAGS the stock market , it will take longer for it to burst. 

The key to property investment is the % rental yields that you can generate and also the long term holding power. Don't talk about property appreciation, as like stock, a property can only appreciate if the buyers assumes that the "highly valued" property  prices will increase even more. However unlike stocks, property market is a thing that is EASY TO GET IN, HARD TO GET OUT in an event of no/poor bidders. Hence, a decent rental yield is vital and this highly achievable only when you managed to buy the property at a very low price.

Something similar to dividend yielding stocks, where in a BULL market it is hard to get a decent % (I mean percentage here) dividend as most of the stock prices have already accelerated upwards.

P.S I will attend one of the coming property investment talks to sample out the quality of food provided :D