Author: CheckW

  • The Americans Are Crazy – Part 2

    A while ago, I wrote about the craziness of the American gun culture. Faced with so much evidence and violence, they continue to advocate more guns as a solution and refused to adopt common-sense regulations to reduce senseless killings. We will never understand them as their form of democracy and first amendment rights seem too alien for us outsiders.

    In America, conflict is encouraged and debates can now go violent in these Trumpian times where fake news is anything you do not agree with, even if they are facts that can be proven in court.

    Internal politics is sometimes interesting to an outsider like me. They can fight all they want as it is their country. But sometimes their actions affect the rest of the world and the logic is warped with a heavy dose of self-interest.

    This week, it is about Pelosi’s trip to Taiwan. I see it as totally unnecessary and provocative and only done to serve the interest of a minority. Stepping on a dragon’s tail and not expecting a response is utterly stupid.

    China had given multiple warnings about the visit but the Americans continue to poke and fan the anger. Now we will see China’s reaction in full view with the triggering of the 4 days war exercise as a lesson on how they can surround Taiwan and take it over. Six exercise regions around the island plus missiles were fired across the country. There was the use of their most advanced aircraft and supersonic missiles as a show of force.

    Biden is now seen as a lame duck president for not having the balls to order Pelosi to postpone her trip. This was just after a one-on-one talk with Xi the week before who was also explicit about the likely consequences of the trip. Then we see the administration scrambling later after the visit to try to contain the situation. Totally unnecessary.

    Pelosi was a long-time anti-China hawk since her Tiananmen visit 31 years ago in 1991 as a young congresswoman. Perhaps this urgency of the visit is to cap her political career, being 82 years old now. There could be another political angle to this too. The GOP opposition was unanimous in their support of her trip. Ahead of the Nov midterm elections, this could be a ploy to negate the argument that Democrats were soft on China.

    There has been too much China-bashing in recent years from everywhere, encouraged by the Americans. We outsiders can see many one-sided arguments while China’s point of view remain silenced. Yes, both sides are sometimes wrong, but biased reporting is jarring.

    America seems to be very threatened by a competing rising superpower and is making all attempts to slow down or stop the inevitable. The use of military power is all they have ever known and here comes the new kid on the block that doesn’t use a single bullet to achieve that aim.

    China uses soft power to win over countries while trying to win them over. With initiatives like One Belt One Road, they rely on their recent confidence in building new infrastructure to expand their area of influence. America on the other hand promotes its huge military industry and continue to start conflicts to feed the need for more weapons. Look at Ukraine and the flooding of American weapons to fight Russia. It is boom town Charlie now for companies like Lockheed and others American manufacturers with a flood of new orders even as expiring equipment is being “donated” to Ukraine.

    China refuses to condemn Russia and tries to stay neutral, even going to the point to not supplying drones to them. But the continued push by the Americans to press China’s hot button will move them away from positive global initiatives. They have just announced that China will stop all work with America on climate change, military and business cooperation.

    With inflation due to the Ukraine war and supply chain bottlenecks, the last thing America should do is to further alienate another global super power partner and flex its muscles when it does not have to. China will now prefer to look inwards to its own economy, rather than depend on overseas demand alone.

    It is already working with Russia to try to break away from the overdependence on the US dollar and the Swift financial system by creating an alternative currency like the RMB or a new digital blockchain linked CBDC.

    America looks like a mess now. The right-hand does not know want the left is doing. Everyone is jockeying for political power. No wonder Andrew Yang has decided to create a 3rd party called Forward recently. GOP and the Democrats simply cannot and do not want to work together for the common good of the country. They rather talk down or shame the other side instead of doing good for the citizens.

    As an interesting aside, with the help of the US after world war 2, Taiwan had marked out their ADIZ (Air Defense Identification Zone – see map below). If you look at it, you will notice that it encroaches on mainland China, covering cities like Xiamen and Fuzhou. Technically, if China flies its fighter jets in its own area, it will enter into Taiwan’s ADIZ. China recently did try to draw up a more equitable ADIZ but it was not well received.

    After Pelosi’s visit, China announced 4 days of a military exercise that covered 6 regions (see the pink boxes on the map below) which surrounded Taiwan as a show of force and what a future invasion would look like. China’s hand was forced as its many warnings fell on deaf ears and it had to react accordingly.

    This escalation of tension is totally avoidable. The trip could have been delayed for a while or cancelled. It serves no purpose to further isolate China while the rest of the world is putting pressure on Russia to stop the Ukraine war and try to bring down inflation. There is much downside risk with little to gain. Americans are crazy to want to trigger this new tension.

  • Mapping Out My Game Plan for the Rest of 2022

    It will be Aug soon and we only have 5 months left to the year.

    It has been an interesting and difficult 2022 for most of us as markets turmoil and aggressive rate hikes curb the excesses of loose monetary policies since the 2008 GFC. Weak portfolios aside, there is a window of hope that markets might recover by early 2023 after some big event risks late into the year (mainly happening in Nov) as I had covered in my previous blog.

    I had been actively working on my game plan for the near future since returning from my New York trip in May. The stars seem to be aligned and hopefully it would be bearing fruits soon as planned.

    When I came back in May from my vacation, I was wondering “what’s next?” for my halftime journey. I had finished a 3+ months full time course with the School of Computing’s NUS Fintech coursebecause I had wanted to get deeper into the nuts and bolts of the technology to see if I am up to it. There were also a number of classes like algotrading and smart contracts in the later modules which interest me.

    My conclusion after that course is that it is quite difficult at my age to pick up tech skills like coding and cloud computing. For most of the classes, I was lost by the time we were midway into the lesson. The younger classmates seems to be able to pick them up easily. I do not have a competitive edge against the tech savvy younger generation. I then signed up for 2 more classes in Jun and Jul to understand the power of Excel and Tableau for greater data visualization as these were linked to a goal I set for myself in my 2022 New Year resolution list in Jan.

    Look back to the courses I did to date, I guess I have to pivot to Fintech using my other strengths as my weakness (getting on par for technical IT skills) will not make me stand out against the Millenials. My main strengths with be my past banking experience, people management skills and the ability to think like a C-suite manager to get tech projects done. I can be a successful bridge between senior management and developer for Fintech projects.

    I then signed up for the RISE 2.0 program https://bcg-rise.com/rise-2-0 by the Boston Consultant Group (BCG) which I had recently completed the aptitude and interview stage. The new format is a compressed 10 weeks of full time study versus RISE 1.0 last year which was for 6 months. It fitted nicely to my expected schedule for 2022 which I will explain later.

    I had also applied for IBF’s TFIP program https://www.ibf.org.sg/programmes/Pages/TFIP.aspx again this year as I was unsuccessful in 2021. It is a full time training program followed by an attachment to a Financial Institution which last from 12 to 18 months. It has a very attractive allowance to help citizens do a mid-career pivot to switch into a Tech career. I chose Business Analysis and Agile Project Management this time as we can only pick 2 and I believe that they can leverage on my strengths as I mentioned earlier. The aptitude assessments has just been completed and the next round will be the interviews with the chosen FIs. Shortlisted candidates will likely begin classroom trainings in late 2022.

    2 other things came along to occupy me for my remaining 2022 timeline too. The first one was the revival of the idea to do a class reunion post-Covid. The last one was held in 2016 and we promised to do it again when we turned 55 but that could not happen last year. Given that the pandemic had decisively moved to an endemic phase now, we decided “why not now?”.

    Reunion planning kicked off in May/Jun. We looked for feedback to gauge interest before securing a venue. Then we started a marketing campaign in FB and via email to encourage people to sign up. I am very excited to return back to normal with big group gatherings again and to celebrate nostalgia with childhood friends again.

    The second thing that occurred: I had very interesting exploratory discussions with 2 old friends on possible business opportunities. One concerning fund raising that may happen in late Sep in S’pore. He is based in HK and may need someone to help with the contacts and arrangements. We will discuss more as we reach the dates as he is also planning to join the reunion in mid-Aug.

    The other discussion was more fruitful. It resulted in a consultancy contract that will start in the last quarter of 2022 which may evolve into a full time job sometime into Apr 2023. It has an ESG angle linked to the production of solar panels which may lead to carbon credit as a financial product. This excites me on the many possible opportunities that has yet to be explored. It can result in the creation of a new ecosystem that is win-win for all and whose time has come. The recent horrendous scorching weather was a reminder that climate change is real and staring at everyone’s face as we see record historical high temperatures everywhere.

    With the above, I think my 2022 calendar is pretty full now. I just need to ensure that the timings line up. I would also want to fit in my family’s expected vacations – a short BKK trip in Sep followed by a longer Europe one into Christmas at year end.

    So the timeline is as follows: Class reunion in mid-Aug, have a short BKK vacation in mid-Sep, start RISE 2.0 for 10 weeks from late Sep into early Dec, start my consultancy project in Oct and see how the TFIP application goes.

    Meanwhile, I would also be looking to fine tune my portfolio to hopefully catch the pick up in early 2023 as the Fed pumps the accelerator again to prevent a recession.

    I strongly believe that if you fail to plan, you plan to fail. Doing nothing is not an option. I want to constantly drive my halftime journey to the way I want it to go. There are times when nothing seems to be happening. But if I continue to push and explore, new doors will open ahead of me.

  • History of My Blog

    BLOG: short name for a weB-LOG. It is a personal online journal that is frequently updated and intended for general public consumption.

    408 blog postings later, I am now into my 6+ year of penning down my thoughts since Apr 2016. Time indeed flies…

    Back in 2016, I was at the crossroad of my life journey as I was trying to figure out what to do next. I had just resigned from my old job which I hated so much and was looking to start a new business venture on retirement homes (which eventually did not happen). I had just turned 50, hence the title of my blog address – Musings of a 50-year-old boy.

    I wanted to chart a new direction to make meaning of what I would like to do next in my life, having reached my halftime crisis moment a few years prior in 2012 after being retrenched from a 19-year bank career. I had time on my hand as I had stopped working full time and was thinking of doing something impactful and memorable for myself.

    Maintaining a blog requires discipline as it is a long-term commitment to publishing regularly while constantly thinking of a topic to write about. Should I talk about current news events or something personal that happened that week? I have to be thick-skinned enough to bare my soul to the world, yet no one may ever bother to read them at all. I had to condition and change my mindset to say “screw it and let’s just go ahead”. There is nothing to lose for an uncle who is already active on social media (FB, Instagram, LinkedIn etc) anyway.

    I started with an online crash course on how I can create my own website address to start the blog. WordPress was the leading candidate which was the easiest to set up (as others like WIX only came much later). I followed step-by-step guides to create my space in the cloud and duly paid for the rights to www.musingsofa50yearoldboy.com plus an annual package to host the blog. It came up to about $150+ of sunk cost even before I started writing down my first virgin blog LOL…

    In the beginning, I was overly ambitious and wanted to blog daily. I would force myself to sit in front of the PC every day to crunch something out, the thought of the day. It was painful at the start to always think of something to say, be it nonsensical or frivolous. The early blogs were short and personal, amateurish at best.

    I eventually settled on publishing weekly blogs instead. I had more time and data to work on after 7 days. To compensate, my weekly pieces slowly became slightly longer. To date, they are about 1,000+ words in length. I had settled into a regular process of being able to churn out a few hundred words easily once I set my mind on the topics to be discussed to type away at my keyboard.

    I usually begin my new blog on a Saturday morning with the first draft, aiming to publish by the end of the day or latest on Sunday. Grammarly is my go-to tool to help correct awkward grammatical mistakes and misspellings. I will usually do a final read of the article before pressing the send button.

    I don’t advertise my website to catch eyeballs as I really don’t care if no one reads it. But the ego does feels good whenever I check the statistics and see a nice uptick. The analytical tool also shows me geographically the countries where the readers are from.

    Sometimes I post the blog link to social media discussions where the topic is similar to my weekly writeup, like the recent mass shootings in America. I also am active on the Clubhouse app as I listen into my favourite rooms on a daily basis and I add the link to my intro bio there too.

    Over these past 6 years, I believe that blogging has helped me to become a better writer. I am able to articulate my thoughts more consciously, direct from my brain to the PC. To prepare for some difficult subjects, I am sometimes forced to research more more to fact-check myself.

    I begin by reviewing my iPhone calendar of my daily activities and reminders for the week to try to form the things I want to write. Sometimes, like this week, nothing much happens and I will be scratching my head to think of a topic that spans a longer period or to share a past experience and what I learned from it.

    The blog also gives me clarity on my personal thoughts as I needed to formulate my argument to take a stand and state in on record in writing. It also forces me to action as I have committed to the world what I intend to do and keeps me focused on accomplishing them eg. my annual year resolution lists.

    By talking about my game plans, I am able to track and monitor my progress and fine-tune it along the way. It pushes me to focus on the important things currently going on in my life and help me ignore the non-relevant fluffy noises.

    I think that my writing quality has also improved over the years because of my blogging. I spend time gathering my thoughts together and then when I start to put them into writing, the flow is smooth as I compose them into words.

    It sets a disciplined and weekly routine for me to organize my thinking to stay focused on what is important and to spend quality time on it, rather than wasting unnecessary minutes watching TikTok and youtube videos, which I still do…. LOL

    Sometimes, I occasionally look back to my old blogs to re-read and review them again, just to check if my thinking has changed or to help reaffirm and strengthen my convictions. It is an “ownself-check-ownself” mechanism to remain true to myself and also to better understand the inner me. No apologies to the world as I bare my thoughts to the world without fear. It is almost refreshing sometimes to bring my inner soul out into the open, sharing my secrets with the world… I have enough materials now to publish my own e-book 🙂

    The next phase of my objective to be a lifelong student has begun. My application to the new RISE 2.0 program had resulted in an aptitude test and a Zoom interview this week. Hopefully, I can start the 10 weeks full-time course soon. It will also coincide with a possible new consultancy project during the last quarter of the year. This project has elements of ESG leading to carbon credits that interest me about its limitless upside potential.

    Another event that is keeping me occupied will be the class reunion to happen in mid-Aug. Our last one was in 2016, 6 years ago. We had wanted to do it again in 2021 as we turn 55 and call it the CPF Withdrawal Reunion. But thanks to Covid, we could not. Better late than never. It is now the “Post-CPF” Reunion. Looking forward to a full calendar for the remaining months of 2022.

  • My One and Only ICO Experience in 2018

    ICO: Initial Coin Offering.

    ICOs are another form of cryptocurrency that businesses use in order to raise capital. A process or event in which a company (especially a start-up) attempts to raise capital by selling a new cryptocurrency, which investors may purchase in the hope that the value of the cryptocurrency will increase, or to later exchange for services offered by that company.

    I thought it is timely that I record my one and only ICO investment experience today. Like SPACs and NFTs, it had its heyday a few years ago before expanding too fast and then dying a fiery death not long after. It peaked around 2017 and died off by 2019 as regulators had to clamp down on the rampant fraud scams that were happening by then.

    It was Ethereum (ETH), the second biggest crypto that birthed the concept of ICOs with its innovative way of raising funds, bypassing the requirement to technically be considered a security issuance. This opened up Pandora’s box of tech nerds with White papers trying to create an idea out of thin air and jump on the bandwagon.

    The founders of ETH created this new crypto kid on the block in 2015 that eventually rivals Bitcoin (BTC). They had idealistic and lofty goals of a decentralised finance (Defi) Blockchain ecosystem controlled by no central authority that was immutable. Using BTC or fiat currencies, one could buy into ETH. It was touted as a platform where its ERC20 protocols allowed for many other altcoin systems to sit on top of it.

    The founders had trial and error experiences that included a hacking incident that almost killed the project. The solution finally was to do a hard fork to prevent the hacker from stealing the coins. That created ETC (Ethereum Classic) as a branch-off and made everyone realise the potential of forks to create new asset class coins within the same original mother ship. Hence we had also seen many BTC forks too.

    It also encouraged the proliferation of ICOs as anyone could technically start a project to raise funds via this process. Write a new concept White paper and use Metamask to distribute their new coin. Viola! It looks scammy at best, so I decided to do some research before I dive into my first and only investment.

    I attended some free seminars on ICOs to try to understand the logic behind the investment. The so-called guru trainer encouraged people to invest with a 3 prong strategy. (1) To buy computers with powerful graphics cards to mine the coins, (2) to join insider chat groups of his to have access to new ICOs as soon as possible and (3) the investment strategy itself. The strategy that was described to us looked exactly like a pump and dump scheme LOL!! Get in fast and sell within weeks – get out before the ICO tanked…

    It made me wonder what the ICO founders are doing with the funds they collected in exchange for their coins. They claim to have a limit cap on the new coin but that could be in the gazillions. The use of the funds was opaque and for all we know, they could have used it to pump the price higher instead of utilizing them for the main purpose of the coin, to create and develop a new ecosystem.

    I was very sceptical of the whole concept as many ICOs were being pushed and I could not see any success stories yet. But I was itching to at least try to invest in one as I always believe that the best way to learn is to put skin in the game, to participate in at least one.

    The opportunity came along as one of my cousins contacted me for his ICO launch. The concept was noble, to create an ecosystem to bridge the gap between small local Asian tour providers with the vast China overseas tourist market using this new coin called WeGold. People will use this newly created coin to exchange for services and trade actively amongst themselves.

    They had strong investors to back them and one of them was a successful investor and an ex-classmate that had done well selling off his matured investments. He was sitting on cash and wanted to divest into new ideas. He was also an ex-colleague of my cousin’s team.

    I thought why not and decided to invest 10k into this new WeGoGo coin. Soon, I became the proud owner of almost a million of this stuff in my MetaMask account. There were constant marketing updates about new drops and how they are progressing with their milestones.

    The first signs of trouble began with the delays. Launch dates seem to be pushed back regularly due to multiple issues. They could not jump-start the ecosystem for various reasons too. The founders also had a lot of their funds tied to the project and were trying hard to push it along even though it was a first-time ICO for all of them.

    Things started getting quiet and the Whatsapp marketing group went silent. I checked with my cousin eventually and he was kind enough to want to meet me in person to deliver the news. They could not proceed further and the burn rate had eaten into their funds and have decided not to seek new funds to further extend the runway. They wanted to cut loss as they had already sunk in about a million in this project. They would look to sell parts of the business to try to recoup some losses.

    Well so much for my first virgin ICO. I thought that the people I know would make it a success. But that was evidently not enough in this new tech world. There were many other variables which had huge hurdles to cross. Starting and maintaining an ecosystem is extremely difficult.

    Crypto exchanges decided to create their own crypto to facilitate transactions with some level of success. Binance’s BNB was issued at a few cents each and traded to a high of $650 before coming off this year to $230 now. Binance is one of the largest crypto exchanges in the world but MAS did not allow them to get a license to operate in S’pore and they are now headquartered in the Middles East. This is only one of the few semi-ICO success stories I can think of as of today.

    Like ICOs, we have seen SPACs and NFTs over the last 1 year having its 15 minutes of fame before flaming out within a short time. Everyone’s looking for the next big thing and product lifecycles seem to get shorter and shorter as volatility increases exponentially. Buyers beware, caveat emptor!

  • Dipping Into New Investments

    In life, there will always be many new things to try. Like a buffet spread, there are a lot of dishes you might not have tasted before that you might want to experience. Investments are the same. I believe that one can study something forever but until you dip into it, you honestly cannot say that you have tried it.

    Over the years, I have refined the process a little based on my past experiences. One should first spend some time researching the topic to make up your mind about getting into it. But with the first investment, one should be prepared to be able to lose all of it. It should be a bite-size amount and one should not bet the whole house on this new asset for the first investment. Also, we must avoid leverage as much as possible, as that will multiply your risk substantially.

    After getting into the first time, you can then assess at a later date if the investment is a correct decision or if you should not participate in it again. It is like swimming. You can read so many how-to books about it but eventually, you need to get to the swimming pool to try out what you have learned in the books. Sometimes it is laziness that prevents me from doing the necessary homework. Then I can only blame myself if things did not go the way I want.

    In my life journey, I am always game to try new things at least once and gain experience from the episode. Sometimes you get an invaluable lesson and learn about yourself as you do a post-mortem. One starts to know oneself better and why one behaves the way we do.

    This leads me to the conference call this week on a new type of investment I went into a few years ago. Back in 2019, I had read up on the topic of Angel Investing. It is a process of providing financial backing for small startups and entrepreneurs, typically in exchange for ownership equity in the company.

    There was a husband and wife team who had successfully sold and exited from the first company they had created and were discovering new startups to invest in. They realized that while these young companies find it hard to attract funds, there is also a ready pool of individuals with money to invest but they don’t know how to do it.

    So they decided to set up a company https://www.angelcentral.co/ to bring these 2 groups together. On the one hand, incubating and mentoring startups to screen and prepare them for investors. On the other side, to provide a structured process for investors to learn about angel investing. Periodically, they would select a number of startups they like to put money in and invite investors to listen to the sales pitch of the founders.

    In this way, they hope to create an ecosystem to support an angel investment community by building a bridge between demand and supply. This structured process is a win-win for all. Traditionally, this type of investment requires a high minimum amount and is only accessible to the very rich. Their process allows for smaller amounts and the participation of more risk-takers.

    I joined their program as an investor for an annual fee and was invited to periodic sales pitch sessions. Each founder was given a short time to sell their ideas followed by a Q&A session. There would normally be about 4 founders/presenters in each session.

    Eventually, I saw one that I was interested in as I foresee the potential to scale up if they become successful. Whenever a tourist goes for an overseas holiday, they might shop for branded products. The process to claim back the VAT (Value Added Tax) as a foreigner at the airport was very time-consuming and difficult. This firm wants to simplify the whole process and aims to target Japanese and Chinese tourists around the world.

    The funding process closed in Dec 2019. In hindsight, the timing could not have been worse. Covid struck a few months later and countries began to lockdown and barricade their borders. Suddenly, overseas travel nose-dived and the company had to re-evaluate the business.

    The management decided to conserve their liquidity to hunker down in order to extend and prolong their funding runway until the situation improves again. Expenses had to be cut to the bone while revenue was almost non-existent. The $1.6 mio raised at the end of 2019 was stretched to as long as possible to weather the pandemic.

    At the call this week, the CEO informed all investors that the remaining funds may not last much longer. The last 2 years had taken a toll on him and he has indicated that he would like to throw in the towel and call it quits. I don’t blame him. No one knew how long the pandemic would last. Even until today, we are only cautiously optimistic that we have moved on to the endemic stage.

    The company have decided not to ask existing investors to top up with more funds. Instead, it will talk to prospective buyers who are interested to take over the whole business. There are a number of interested parties. They are in the process of internal evaluation.

    So much for my first virgin angel investment deal. It looks like a full write-off now for me. Things went beyond anyone’s control as external factors overwhelmed the core business proposition. It looked promising at the start during the old normal before the 1 in a 100 years pandemic struck.

    Like all my investments, I have to take this as a necessary tuition fee to participate in a new investment class that did not turn out well. The loss is something that I can stomach and I came into it with my eyes wide open, knowing that this asset class carries a high risk. The probability of success is unmeasurable at the start as anything can go wrong.

    My takeaway from this episode? I have a better understanding and process of how one can evaluate the success of a start-up business now. It has since also helped me decide to invest in another online start-up after reviewing their proposition. But it is not an area I will seek to explore actively in my future investment journey.

    Angel investing is a high-risk game where out of every 10 deals, only a handful or even none can be successful. Having deep pockets is a given as one diversifies into many bets, hoping that the winners can help you recoup your initial investment plus more. It may not be everyone and perhaps sticking to buying exchange-traded stocks or mutual funds is more suitable for me.

    ICO –

    try first, dip your toes in, no leverage

    skip NFTs but SPACs grab sad

  • When One Door Closes Behind Me, Many Other New Ones Open in Front

    Life has a way of throwing new adventures at you even when you think you are stagnating and not moving forward. We try our best to make way for fresh discoveries, to plan in advance for whatever is within our control to enable new doors to open.

    Sometimes life does throws you a curveball. We can either move aside to avoid it or use all efforts to bat as hard as we can to reflect it back. Risk aversion increases with age and makes one less likely to take up challenges that seem unfamiliar and alien to our status quo. Sometimes, we need to fight that urge to free ourselves so that we can discover and explore novel experiences.

    I totally believe the notion that when one door closes behind you, many other new doors will open in front of you. But for this to happen, it requires proactive efforts to plan ahead. Sometimes, you go into a funk and nothing seems to happen for a while even as you try. You wonder about what is going to happen next and life becomes a boring and routine drag.

    I started 2022 with a bang as I wanted to go off in a new direction. I was frustrated with my old consultancy project work in an Asian country after 4 years. Things were looking stale and I didn’t think I could value add to the role anymore. The military coup certainly did not help. I wanted to make a clean break and try to figure out what I wanted to do next, to chart a new path.

    I kept myself occupied initially with a new full-time FinTech course to get deeper into the areas I was always interested. This lasted till Apr. It was challenging for a non-tech-savvy uncle like me. I needed to prove to myself that I could handle it like any other younger person. It was tougher than I thought but at least I tried. Perhaps my expectation at the beginning was too high. The class of 30+ came from very diverse backgrounds and my project group simply cannot click as a team.

    It also did not help that all asset classes were having a meltdown from last Dec till now. It was like a rabbit standing in the middle of the road staring down at an approaching truck that had high beam headlights on, seconds before impact. This slow-moving train wreck that is now into its 6th month with no end in sight. It is so painful to watch your portfolio going into the red across the board for weeks on end.

    I was fortunate enough to time an overseas trip immediately after my NUS course ended. It was a good 2 weeks break to spend quality time with my family, to recharge my batteries. I came back all energized to start planning for my second half of 2022, to see what I should do.

    One more short one-week Data Analytics course in Jun later, I had reached the mid-point of the year.I had been settling into a week-by-week mindless routine, bumbling along as I try to figure out what to do next.

    One of the new projects that came along, post-Covid endemic, was to organize another class reunion again after our last one in 2016. I had discussions with my usual partner in crime organizer and we felt that it was time again to kick start this gathering. It gave me some purpose and nostalgia to do this again, even as we are unsure of how the endemic phase of the virus would unfold into the event date. We called this the “Post-CPF” reunion as us uncles and aunties were eligible to withdraw our CPF at 55 last year.

    Then out of the blue, 2 potential new doors opened up unexpectantly for me this week. I am not so sure where they will lead me but I am willing to explore further. Either one might set me off on a new path and adventure. Both are aligned with some of my halftime objectives and interest which make them interesting to me.

    The first was from an old schoolmate based in Hong Kong. He manages his own consultancy business and even wrote a book on how to do business in China that is available for sale on Amazon. He suggested a Zoom call this week to explained to me the background of his proposed venture.

    He is trying to help a client seek new investors. This Fintech firm is looking to change the way microfinance businesses obtain financing in China. The objective was to create a new asset class of small business portfolios on an exchange platform. This will attract investors to actively participate in the success of many SME (Small and Medium Enterprises) setups in a fully transparent basis via real time data analytics monitoring. By bringing supply and demand onto an organized exchange, there will be synergies and win-win opportunities for all. Best of all, there is ecomonies of scale and China is already well positioned technologically.

    We had a good 1-hour discussion and agreed to talk more. He plans to do a roadshow in S’pore in the later part of Q3’22 and perhaps I could also be of assistance to his marketing efforts. I believe I have the relevant experience and network connections that he can tap on. It will be interesting to participate in a potential game-changer effort to revolutionize and create a new asset class which can benefit small businesses.

    The other interesting door that opened for me this week was from an ex-colleague. We have had on and off again discussions over the last few years on possible project collaborations. He is a very sharp and smart true entrepreneur that constantly seeks financial issues to solve and profit from. Many opportunities involved companies looking for funding. He facilitates as a middleman to bring the deals to the table of investors with liquidity.

    Last year, he became excited about the possibility of using technology to help develop a platform for the trading of carbon credits. There has been not much progress in Asia on this area and he believes that he can bring everything together to create a viable business model.

    A year later, he had finally gotten an anchor investor to help set up the building blocks of a company which can implement the various strategies he has in mind. He is beginning to look for suitable persons to add to this build-up and thinks I can be a useful addition to this company. We had a fruitful 2+ hours discussion and agree to take things a step further by arranging to meet at his office next week.

    I feel energized again after this week. No doubt that the 2 events may lead to nothing but it gives me purpose to want to explore further. I think I have done enough studying for this year as a full time student and need to throw myself at other meaningful projects to develop my own purpose and drive in my halftime discovery journey.

  • My Bold Forecasts and Predictions

    So much happened in America this week. 2 powerful Jan 06 sessions piled on more damning evidence on the orange one. The supreme court also just overturned Roe vs Wade last night. These 2 events will have lots of ramifications plus new late-night comedy material into the US mid-term elections in Nov. The long-delayed tightening of gun rules was also finally passed after multiple needless death of innocents.

    I am trying to make sense of what is happening in the world today and perhaps make a few bold predictions and forecasts for the rest of 2022. By writing it down in my blog today, I can reflect on them in the future to see how many I may have gotten right or if I was totally off the mark. This will also help me plan and formulate my investment strategy for 2H’22.

    I want to look at 5 major trends at the top of my mind now which will likely shape the way the rest of the world will be heading into 2023. They are the political state of America, the Ukraine/Russia war, China’s Xi legacy, the interest rates playbook and oil prices. Hopefully, they will help to crystalize my thoughts for a proactive fine-tuning of my investment portfolio.

    (1) America will be in an upheaval mode going into the Nov mid-year elections as the GOP and Democrats throw up obstacles and divisive issues in the path of the voters to desperately sway their opinions. We have already seen guns and abortion rights dividing the nation recently. The 06 Jan insurrection committee sessions will also pour kerosene into the flames as the groups battle it out.

    The next 5 months will see political parties throw everything but the kitchen sink into the confrontation debate to win votes. It seems like a sure thing that GOP is likely to win back the Senate and Congress now, given the sky-high inflation environment. But nothing can be certain until then. We are going to see a more divided nation where core issues will bring up heated discussions. Too much democracy and first amendment rights plus the freedom of speech results in a powder keg of explosive conversations and even violence going forward.

    (2) The Ukraine war has dragged on for too long already. Russia is rapidly losing its military inventory as the world feeds more weapons to Ukraine to fight back. Countries can now gladly send their expiring weapons over to them for defence against the Russian bear. The American military companies are laughing all the way to the bank with roaring new orders from all countries, especially the Europeans, as they need to stock up again. Viva La Americano!

    Everyone will only want to buy American weapons now as Russia becomes a pariah. Uncle Sam has a win-win situation to massively write off at least $40+ billion of military equipment knowingly that these new fundswill go directly to support the mighty American military industry juggernauts.

    Russia has changed its end game focus from conquering the whole of Ukraine to a narrower focus as they realized this is not a walk in the park. They are likely to capture the Donbas region at all cost, then call it a victory and return home. It is Crimea all over again. They cannot afford to have an unending war with ever-increasing causalities.

    The sanctions will eventually bite hard unless China provides a lifeline. Russia and China have a long-term objective to break out of the world’s dependency on the USD Swift system, price commodities in another currency other than the USD and promote another alternative ie. RMB. 2 separate world blocs will evolve as the Western and Eastern hemispheres lock horns.

    (3) China’s Xi is waiting to be re-elected to an unprecedented 3rd term by autumn this year. The zero Covid strategy makes no sense but yet they are holding to that policy. Is there something the rest of the world doesn’t know or is it because China has to steady the ship at all costs until Xi is re-elected?

    Once Xi has won the mandate to run again, China will likely go full steam ahead to open up for business and unblock all supply chain bottlenecks caused by the Covid lockdowns. The Chinese are always a pragmatic race that prefers long term prosperity over war in their 2,000 years history.

    (4) Will inflation give way to a recession and then stagflation? The Fed just hiked 75 bps and is likely to do the same at least 2 more times to contain the inflation monster. We should see peak inflation happening within the next 3 months. Interest rates should stabilise around the 3-4% level which is the long-term historical average. The last 14 years of post-GFC ultra-low interest levels will not return.

    Deleveraging has happened in a big way in the last 6 months. The cheap money excesses since the 2008 GFC had been deflated substantially with broad drop of proces in the range of 75 to 90% in many assets. I do not think that there will be further domino effects to race down to a new low.

    (5) Oil prices look shaky at current levels and is unlikely to head higher. Biden will arm twist the Middle East to increase production with the promise of enabling more new weapons purchases (win-win for America again). Failing this carrot approach, they will bring out the big guns to threaten them with new sanctions.

    Just adding another million barrels a day of new output by Opec might do the trick to bring prices below $100. An oil tax holiday is a standby option at the expense of lower government revenues. Oil frackers can also be called to arms to “patriotically” defend the country as their cost of production now is $55 per barrel or even lower after a string of bankruptcies in that sector. The frackers just need to turn on the pipes to pump again. The environmentalists have to postpone their wish list for the greater good of the country. Biden will time the oil “rescue plan” into Q4 to time it nicely with the mid-term elections. He can then declare victory over the slaying of the inflation beast.

    To sum it all up, the above 5 scenarios point to a turbulent 2H’22 filled with volatility due to risk events. They all seem to conclude into the month of Nov. There will be a lot of repositioning and posturing as portfolios are rebalanced. One should be careful from now till the end of the year. Investment opportunities have to be double and triple-checked before entering as our cash pool diminishes.

    I believe that if the worse case happens and the economy weakens further into early 2023, the central banks will start to ease and print money again. This is the tried and tested put option to prevent a financial calamity which they have been doing so successfully since the 2008 GFC. It is an addictive drug that has no other alternatives nowadays. And the Kraken will be released again.

    Investment-wise, I have to be nimble from now to year-end. I look to start trimming down some of the deadbeat stocks I own to increase my cash position. I will only invest more if I have done thorough research on the company as I conserve my remaining funds. I will continue to observe the crypto space and wait for it to stabilize further.

    Bottomline, I need to strengthen my overall portfolio to prepare for the recovery and rally into 1Q’23. All my predictions may not pan out as forecasted. But the 5 major trends I listed above all seems to point to a timeline that is consistent with a turnaround for early 2023. I will continue to plot and plan ahead. Wish me luck!

  • Crypto Winter – Week 120

    Wikipedia defines a Ponzi as a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The greater fool theory revolves around the pushing of an asset price higher by attracting more people and creating a FOMO (Fear Of Missing Out) environment.

    The above 2 points perfectly describe the crypto markets today. BUT they can also be used to explain any other asset classes too. SPACs and NFTs are one. So are FANG stocks, plus traditional investments like stocks and bonds.

    The premise of investment is to buy a promising asset ahead of anyone else before the man in the street discovers the hidden value. One then sells out when the hype stops justifying the valuation. Easy said than done.

    We are now seeing a crypto winter, no thanks to the meltdown of all asset classes since the start of the year. There are many reasons being debated to justify the drop. It was the Ukraine war by Russia. Oil prices hitting $120. The ending of Covid as we return to a sense of normalcy. Supply chains getting stuck again after 2 years of standstill. Too many years of money printing by Central Banks that inflated all asset classes and now it comes back to bite us in the ass.

    In hindsight, we should have seen it coming. Again, easier said than done. This was after so many years of binge drinking the Koolaid of successfully buying the dips. As more new money had been poured into the flaming fire of asset pumping, the rally was being fueled and turbocharged by new central banks accounting tricks.

    More than 30% of US dollars were created over the last 18 months alone. The Fed had tried to overcome Covid by throwing UBI (Universal Basic Income) at its citizens in an effort to save the economy. And most other countries followed the same playbook as the pandemic froze all economies in their track. This adrenaline rush stop-gap measure always works from the 2008 GFC until the day it breaks the system. Is the day of reckoning at hand? Is the moment of truth here now? Will it work again? It looks inevitable that central banks may have to print more and pump the accelerator again within the next 6 to 12 months again.

    Within the crypto space, we had seen a +10x rally beginning from Jan 2021 as the Gamestop saga successfully pitched the everyday man against the professional money managers. It emboldened individuals to hop onto the “sure-win” bandwagon of overnight riches with tips from newly created Clubhouse “professionals”. Many were touting new meme coins plus Bored Apes wannabes NFTs.

    The crypto markets surged to a $3 trillion value and newly created billionaires fought against the old financial world. They pushed Defi (Decentralized Finance) aggressively by creating even fancier shinier objects to ramp up. The blurring of investment to speculation to Ponzi was mind-blowing. Cryptos are now below $1 trillion as 2/3 of the value had been destroyed.

    And the party crashed spectacularly this week to new lows. The domino effect is shaking the crypto space to its core as the top 2 cryptos BTC and ETH got savaged. The fast and furious world of this market showed that volatility can increase on the downside as well as the upside. The destruction of the Terra Luna stablecoin, which suddenly became not so stable after all, is a painful lesson to learn.

    Can we really create something out of nothing? Yes, we can and have been doing it for years. Take, for example, online gaming. As one gets more involved in the game, one can exchange fiat currency for online money to purchase and enhance your gaming experience. The company creates online gaming gold tokens out of thin air in order to collect your dollars.

    Look at the recent collapse of the Terra Luna algorithmic stablecoin to maintain its peg. The foundation promised a yield of up to 20% per annum for staking via Anchor, the lending and borrowing protocol . How does it pay for the promised yield? By creating more tokens, duh!. If you believe that the price will be stable or heading higher, then FOMO will prevent you from cashing out.

    The rug pull happens when everyone suddenly wants to exit at the same time. The logical algo-driven process is theoretically sound on paper but when a black swan event hits, no one knows if it can survive the onslaught. The real world has a bad habit of catching you with your pants down when you least expect it. It took only 2 withdrawal trades of about $100 million each to cause the depeg and the tokens spiral to almost zero within hours.

    Suddenly, we are now seeing many asset price drops of 75 to 99% as being the norm, rather than the exception. It becomes crazy and we get numb to it like a rabbit on a highway watching the headlights of an approaching truck till impact. There is no time to react. Or is there?

    There were signs out there for months but we refuse to believe that this time it is different. Many previous times of successfully buying the dips had conditioned us to do the same thing again and again, to double down. This time, our cash reserves are diminishing until we can do it no more.

    The Terra Luna collapse has begun to threatened a contingent domino effect which had affected other algo stablecoins. Some exchanges like Celsius had started to freeze withdrawals and fueled more panic. Just this week, BTC had dropped almost 30% from 30 to 20k while ETH had also had a similar move from 2 to 1.1k. The total meltdown is a capitulation of highly leveraged positions seeking the exit door. The market smells blood and weak positions are being flushed out on the downside.

    By the way, is Covid over yet? My blog weekly count since the start of the pandemic is 120 this week. I believe that we have already moved to an endemic stage. Historically, a virus tries its best to survive by being more contagious. But it also gets less deadly to ensure that the human hosts can allow it to continue to spread. That being the case, I will stop the weekly count today.