Monday, July 19, 2010
Poll Results: Which is the most toxic investment product
In a poll that I recently conducted on this blog, I asked the simple question to readers:
Which is the most toxic investment product?
All investments are subjective are their investors believe that they will rise in value and thus invest in them. Toxic investments or assets are simply things that lose their value such that there is no way to liquidate them for any money. Whether investment products are toxic........we can only tell based on hindsight I guess. On hindsight, we are now certain that subprime mortgages are toxic assets. But whether other investment products are toxic or not, we can only wait and see.
Poll Results - A total of 22 votes were cast
1. Land Banking (54%)
2. Insurance Products (18%)
3. Wine Investment (27%)
4. Shares (0%)
Analysis of Results
The poll showed that more than half felt that Land Banking was a toxic investment product. Wine Investment was next followed by insurance products. Nobody felt that shares is a toxic investment.
The reason why Land Banking got so many votes is perhaps due to the recent Straits Times article on it being unregulated. Mr Tan Kin Lian has also highlighted the pitfalls of investing in land banking on his blog. The low liquidity of this investment product coupled with the risk involved makes this a fairly risky product to a certain extent.
Interestingly, noone rated shares as toxic or risky even though there have been cases or debacles of shares becoming worthless overnight. Just think of China Print and Dye, etc. These shares just lost value overnight and became totally without value. Isn't that toxic?
Most Singaporeans will probably not have heard of Dave Ramsey before. But anyway, Dave Ramsey is America's trusted voice on money matte...
Trying to compile the salary pay scale for the Singapore civil service. Somehow, I only managed to find the figures for 2011. There are p...
I received a query from a reader about how to buy a particular US stock from Singapore. This is a common question that I get and I thought ...
Not too long ago, I wrote a post about how much to give for Chinese wedding dinners. It was pretty well received so I thought a good fo...
Often, I get questions on how much one should give for baby shower (e.g. colleague's baby first month celebration, etc). Well, this is ...
In my previous article , I compared an endowment plan with an ILP. Many might think that an ILP is a silly way to save for my child's ed...
Just received Tokio Marine's Participating Fund 2014 update from my whole life policy with them. As expected, they are maintaining the ...
Some years back, I purchased a term insurance under the SAF Group Term Life for me and my wife. The consideration back then was affordabi...
I just contributed another lump sum of monies to my SRS account. There are good reasons for me to do so since I get to enjoy tax reliefs an...
The showroom at ARTRA was packed on Saturday. I will not be surprised if the units are almost 80 of 90% sold. Besides boasting a really g...