Sunday, June 16, 2013
I've entered into a new phase of life. The first 2 weeks into working life has been a steep learning curve. Being in the civil service has both its merits and demerits. Merits would include stability and emphasis on training (lotsa it!) while demerits include slower progression in terms of ranks, wages and lots of red tapes.
Being in the economist profession no doubt leans to my personality, however the working environment is filled with people who are smarter than you. I'm not sure if this should be viewed as a positive or negative point.
With regards to emphasis on training, I think civil service place a higher emphasis than most companies.In fact, I'm excited to go for courses that upgrade my current set of technical skills.
Reading stuff from various sources, I think it's essential to develop both a career and financial plan.Here it goes..
Career Plan
1. Aim to get into ES before head of department leaves
-Be Proactive
-Write x papers(to be determined)
-Be proficient in your portfolio5k
-Learn both technical and soft skills: VBA, Microsoft access (In case you want to jump)
2. Get a masters in either Stats, Economics or MPA
Financial Plan
1. Pay up your debt
-Friend: June,July
-Aunt: August, September
-Mum: October, November, December *3 (Including bonuses)
2.Start with a clean slate
-Invest half of income: Value average ETFs
-Save half of income for marriage
Effectivness Plan (Refer to summary of 7 habits)
1. Be proactive
2. Begin with end in mind
3. Put first things first
4. Think win/win
5. Seek first to understand, then to be understood
6. Synergize
7. Sharpen the saw
Personal Plan
1. Visit maid
2. Get married in 4 years
Saturday, April 6, 2013
After applying to around 60+ jobs, I finally found a job in the civil service as an economist. I can say this is kind of unexpected and it feels real good because I'm able to find a job that leans towards my strength, personality and interest. The interview process was really tedious and rigorous which kind of affected my grades in a way. But I got to say that this is a good trade off given that my priority was to find a job. However, I've got to give myself a final push towards the finishing line since my remuneration is dependent on my honours which is potentially $3000/ year- a large sum if I were to stay in the civil service for many years coupled with the compounded effect.
Another thing that I am proud of is to finish a thesis with the same topic from my internship. It's something that I always wanted to do in an academic way, as opposed to the management consultancy way that I employed in my internship paper. Need to give myself a pat on my back given that my teammate freeloaded on me. Not that I care since this is the most effective way in learning things.
It's time to say good bye.When I revisit my blog next time, I hope to obtain my desired class of honours and enjoy my job at the same time.
Another thing that I am proud of is to finish a thesis with the same topic from my internship. It's something that I always wanted to do in an academic way, as opposed to the management consultancy way that I employed in my internship paper. Need to give myself a pat on my back given that my teammate freeloaded on me. Not that I care since this is the most effective way in learning things.
It's time to say good bye.When I revisit my blog next time, I hope to obtain my desired class of honours and enjoy my job at the same time.
Tuesday, December 18, 2012
It has been quite a long time since I blogged. Much has happened since: found some wonderful things, encountered bad stuff, made bad & good trading and investing decisions, etc.
Talking about investing, I realise that the best method for me moving forward is to adopt an 'automated' system where my decision is based on pre-set criteria rather than intuition and news. This is because after much experience in the market, I realise that I'm an impatient person, which is an archilles heel if you were to trade or invest in the market.
Furthermore after attaining certificates and taking certain modules of the following:
1. CFA Level 1
2. CMT Level 1
3. Behavioral Finance
4. Portfolio Management
5. Corporate Reporting and Financial Analysis
I feel that the best method for me moving forward is to adopt 'Value Averaging' system, popularized by Michale Eldeson (can't remember the exact spelling) integrated with both Portfolio Management (minimizing variance and attaining corresponding weights for ETFs) and simple technical analysis (involving moving averages and simple trends). Since I'm able to derive an automated system and I forsee myself attained a relatively successful track record, my interests in pursuing a career in finance/ investing has waned tremendously. Long gone have been the days where I dreamt of becoming the next warren buffett after I have gone through the gruelling module of Corp. Reporting & Financial Analysis where I learnt and created full residual income models, discounted cashflow models, relative valuation models and adjustements to line items to account for modes of consolidation and operating leases. After applying what I have learnt, I realise much of these are very much dependent on parameters which again depends on your judgment. However, after immersing myself in the field of behavioral finance through reading countless academic papers, I found out that judgment could kill. I began to question whether I could actually beat the market by picking stocks. True, you could pick an undervalued stock! But the question is, could the stock ever recover to its fair value.
On the contrary, my interests in economics & social phenomenon have picked up tremendously. I began reading voraciously on economist articles; thinking hard about some of the analytical tools they use ( for eg. regression models, advanced stats analysis). I believe that my new habit is partly fuelled by my internship in Singapore's trade development board where I did intensive research and wrote a paper on a social phenomenon. After finishing my gruelling stint, even though I felt burnt out (studying for CFA level 1 plays a part), I know that I have done something that could be beneficial to policy plans which in turn could benefit Singapore's society.
At this point of time, I realised if I were to venture into this area for my career, I need to further improved my statistical skills. Even though I have basic knowledge in econometrics and market research statistics ( for eg cluster analysis, partworth utility,bla bla bla), I feel that it's still insufficient.Hence, I decide to enroll myself in economics forecasting (dealing with more time series models) and applied regression models in my last semester of my university life.
But when all is said and done, the priority for me right now is to find a job that I would love. It could be in the area of consultancy, policy planning, statistics, economics or research. Jobs seem to be scare in this competitive society where everyone seems to be so brilliant, especially in the 'Dragon Year'. With the supply of graduates to skyrocket and demand of graduates (from company view) to be stagnant, will we witness a fall in wages in the private sector?
It might be long time till I write my next bog post. However, I hope by then I would achieve some form of success. It could be in monetary terms, family, etc.
Bye Bye! (to myself or any random guy who read this post)
Talking about investing, I realise that the best method for me moving forward is to adopt an 'automated' system where my decision is based on pre-set criteria rather than intuition and news. This is because after much experience in the market, I realise that I'm an impatient person, which is an archilles heel if you were to trade or invest in the market.
Furthermore after attaining certificates and taking certain modules of the following:
1. CFA Level 1
2. CMT Level 1
3. Behavioral Finance
4. Portfolio Management
5. Corporate Reporting and Financial Analysis
I feel that the best method for me moving forward is to adopt 'Value Averaging' system, popularized by Michale Eldeson (can't remember the exact spelling) integrated with both Portfolio Management (minimizing variance and attaining corresponding weights for ETFs) and simple technical analysis (involving moving averages and simple trends). Since I'm able to derive an automated system and I forsee myself attained a relatively successful track record, my interests in pursuing a career in finance/ investing has waned tremendously. Long gone have been the days where I dreamt of becoming the next warren buffett after I have gone through the gruelling module of Corp. Reporting & Financial Analysis where I learnt and created full residual income models, discounted cashflow models, relative valuation models and adjustements to line items to account for modes of consolidation and operating leases. After applying what I have learnt, I realise much of these are very much dependent on parameters which again depends on your judgment. However, after immersing myself in the field of behavioral finance through reading countless academic papers, I found out that judgment could kill. I began to question whether I could actually beat the market by picking stocks. True, you could pick an undervalued stock! But the question is, could the stock ever recover to its fair value.
On the contrary, my interests in economics & social phenomenon have picked up tremendously. I began reading voraciously on economist articles; thinking hard about some of the analytical tools they use ( for eg. regression models, advanced stats analysis). I believe that my new habit is partly fuelled by my internship in Singapore's trade development board where I did intensive research and wrote a paper on a social phenomenon. After finishing my gruelling stint, even though I felt burnt out (studying for CFA level 1 plays a part), I know that I have done something that could be beneficial to policy plans which in turn could benefit Singapore's society.
At this point of time, I realised if I were to venture into this area for my career, I need to further improved my statistical skills. Even though I have basic knowledge in econometrics and market research statistics ( for eg cluster analysis, partworth utility,bla bla bla), I feel that it's still insufficient.Hence, I decide to enroll myself in economics forecasting (dealing with more time series models) and applied regression models in my last semester of my university life.
But when all is said and done, the priority for me right now is to find a job that I would love. It could be in the area of consultancy, policy planning, statistics, economics or research. Jobs seem to be scare in this competitive society where everyone seems to be so brilliant, especially in the 'Dragon Year'. With the supply of graduates to skyrocket and demand of graduates (from company view) to be stagnant, will we witness a fall in wages in the private sector?
It might be long time till I write my next bog post. However, I hope by then I would achieve some form of success. It could be in monetary terms, family, etc.
Bye Bye! (to myself or any random guy who read this post)
Thursday, July 21, 2011
Value Averaging
I just encountered this method which I might be using for the rest of my life. This method produces the best internal rate of returns as compared to more conventional methods such as dollar cost averaging.
However, I might tweak the strategy a bit. For instance, when the stock prices are below the 250 MA, I would increase my contribution rate from $500 to $600.
On a side note, I might want to be a teacher rather than going to the financial sector. I'm really confused now and I do hope that someone can shed some light on this matter.
However, I might tweak the strategy a bit. For instance, when the stock prices are below the 250 MA, I would increase my contribution rate from $500 to $600.
On a side note, I might want to be a teacher rather than going to the financial sector. I'm really confused now and I do hope that someone can shed some light on this matter.
Monday, November 29, 2010
Jim Roger's analysis of UN's 'aid'
Does aid help Africa at all?
We do know that stuff such as clothes are being sent to the continent. But, does it really help them at all?
Jim rogers mentioned that these shirt that are meant to be aid are being sold to the people in Africa instead. And, these will bring about few problems. One of them is, the clothes producers are not able to compete with these 'new sources/supply' which are being sold at a cheaper price.
The developed countries might have already understood this situation, but they might still choose to do nothing at all, since cutting this source of 'aid' would be deemed as a move that is not 'humane'. Also, the alternative solution of purchasing these clothes from the African producers would result in intense competition with its own manufacturers.(which seems to be a bad thing for them even though competition is often good for an industry to progress) and this is not viable to them.
All in all, even though the better solution is to import the clothes from Africa, the developed nations are not wiling to adopt this stand since it might 'hurt' its people instead.
We do know that stuff such as clothes are being sent to the continent. But, does it really help them at all?
Jim rogers mentioned that these shirt that are meant to be aid are being sold to the people in Africa instead. And, these will bring about few problems. One of them is, the clothes producers are not able to compete with these 'new sources/supply' which are being sold at a cheaper price.
The developed countries might have already understood this situation, but they might still choose to do nothing at all, since cutting this source of 'aid' would be deemed as a move that is not 'humane'. Also, the alternative solution of purchasing these clothes from the African producers would result in intense competition with its own manufacturers.(which seems to be a bad thing for them even though competition is often good for an industry to progress) and this is not viable to them.
All in all, even though the better solution is to import the clothes from Africa, the developed nations are not wiling to adopt this stand since it might 'hurt' its people instead.
Friday, July 16, 2010
Pondering
Many people who have achieved financial independence keep mentioning about 'Pipes'. Right now, I don't really have a solid pipe yet. I keep harping on reaching the $100k goal before I graduate, but I do feel that this goal is getting further and further away from me. How do I maximize my time. Time=money! Right now, I'm often free at nite. I do feel that I should really convert the precious commodity of time into money! How can I do it. Can anyone enlighten me? By trading FOREX? How? People are not willing to teach you for free man.
1.) Work on MON, WED and FRI. 15 x 8= $120 ($480/ month)+ tuition($400) or $600++ instead of $480. $880 or $1000
I want to get rich!!!!!!!!!!!!!!!!!!!!
1.) Work on MON, WED and FRI. 15 x 8= $120 ($480/ month)+ tuition($400) or $600++ instead of $480. $880 or $1000
I want to get rich!!!!!!!!!!!!!!!!!!!!
Monday, July 12, 2010
Re-assessing my goals
1. Do 1 major event per semester-most probably I will doing one of the social enterprise projects this semester.)
2. Increase cash flow-find 1 more tuition during the weekend
3. Increased EQ, broaden social network
4. Broaden my knowledge-look up to charlie munger
5. Do not be stagnant
6. Step out of my comfort zone
7. Improve on public speaking skills
8. Increasing net worth to $30,000.(I'm really lagging behind!!!!!!!So long and it's still $25,000. It's really quite hard to increase my net worth while I'm still in school. But, nothing can stop me man.)
2. Increase cash flow-find 1 more tuition during the weekend
3. Increased EQ, broaden social network
4. Broaden my knowledge-look up to charlie munger
5. Do not be stagnant
6. Step out of my comfort zone
7. Improve on public speaking skills
8. Increasing net worth to $30,000.(I'm really lagging behind!!!!!!!So long and it's still $25,000. It's really quite hard to increase my net worth while I'm still in school. But, nothing can stop me man.)
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