This is likely to be one of my last post for EIQ for some time to come. Biotech investment is always risky. We never know till the very end how our investment would turn out. It is a risk we have to accept before we start. Nevertheless, it has always been a fulfilling experience. There’s always so much to learn along the way. With the looming patent cliffs for bio pharmaceuticals, many big pharmaceutical manufacturers are racing against time searching for the next big hits. These are companies with money 💴 to spend, so I will stay on in this space in search of the next winners. This doesn’t mean I have given up on EIQ. It just means that I have parked this aside as I don’t expect much activity for the next 6-12 months. In investing, especially with US market facing possible meltdown in t

Deluded...

So rather than buying US Treasuries, and those same JPN investors have begun aggressively selling off US debt to bring their cash home. This is the main reason why US had joined Japan government in JPY intervention to support JPY. The cheaper JPY vs USD, the less sense for Japanese to buy new US Treasury. It also makes a lot of sense to sell USD based Treasury as they will end up with a lot more JPY. So, US Treasury is scared! Dead scare... The house of cards might just come tumbling down... It is strange times... while long term Treasury is now considered risky, US equity is still attractive to a certain extent... until it doesn't... remember that the bond market is so much larger compared to equity market. If bond sneezed 🤧, equity crashes...

What you had stated is the normal working government debts system. However, this normal no longer holds: The Failure of the Old Normal - For decades, the global financial system relied on specific "safety valves" that have now stopped working:The Infinite Cheap Capital Loop (Japan): Japan survived a gross debt-to-GDP ratio well over 230% because its interest rates were near 0%. Global investors used this to fund the Yen Carry Trade—borrowing free yen to buy higher-yielding assets like US Treasuries. Because inflation finally broke through Japan's low-growth stagnation, the Bank of Japan (BOJ) had to raise its policy rate. As rates creep higher toward expectations of 1.25%, the carry trade is aggressively unwinding. Furthermore, Japanese 10-year and 30-year bond yields hit multi-decade h

Property prices in most parts of Australia are undergoing correction. It is not just inflation triggered interest rate hikes, the new federal government’s policy of removing negative gearing is having a big effect on reducing investor’s appetite. The result is a withdrawal of property investment. This left only first time buyers in the market. Sellers obviously don’t want to sell to this group as they don’t have the money to pay the asking prices. Sales collapse. Inflation from oil prices hike and removal of government fuel prices subsides is not helping. Central bank might have no choice but to raise interest rate again. Australian inflation has stayed stubbornly high compared to those seen in Singapore. Banks are no doubt benefiting from rates hikes however with less property transaction

Gee… I heard most of these 500 will be doing sales… investment-linked insurance types… which is something I had experienced buying. Mixed bags of feelings… insurance should be what it is, protection. Investment on the other hand should also be what it is, growth and wealth… mixing both together might appear enticing for many older folks who don’t really know investing and simply want more interest for their savings… if the sales pitch says as it is, I would be fine, since even the non-educated would have been informed. A pity, from my past experiences, sales are sales. There’s always a glorifying package that masks 🎭 the actual product. I can only say that as Singaporeans become more affluent (assets and CPF rich), with cars 🚘 being so expensive, those savings have nowhere to go to, it’s n