Short/long term investments/retirement policies etc advise

[Premchand1976]

With regard to getting " our cut ". I've been in the industry long enough to not try to get rich by conning / misinforming clients.

[ravindrapolo]

With regard to getting " our cut ". I've been in the industry long enough to not try to get rich by conning / misinforming clients.

never said it was u bro but therea are some

[Redman]

T

o keep it simple, I can run the statement and confirm this. I will not provide this info here tho. Client/ policy confidentiality.

Providing the principal, start date performance and endate has nothing to do with Client/policy Confidentiality.

Re read your post-stating that a client made 6k usd on his policy is useless info unless you think the 6k is impressive.

It could be if the principal is 5k...and the timeline is 5 years.

it would not be if the principal is 10,000,000 and the timeline is 15 years.

After 24 months.......principal invested shouldn't matter.......growth on capital no matter how small is what we're looking at here right ???? High returns.......check CLICO

Uh after 24 months why shouldnt principal matter???

Actually what should be sought after in this discussion is REAL return....Growth/Interest minus the inflation rate.....retirement products are LONG term instruments-so inflation is the biggest risk-not so much market volatility...so negative growth after accounting for inflation is a fail.

Regarding CL-the EFPAs worked for around 20 years..(so after 24 months principal seems to matter)..and the collapse had little to do with the EFPAs and more to do with the GFC and the dislocation of the markets....Merrill Lynch,Lehman Bros, Morgan Stanley, and a ton of firms failed ...Many because of contra relationships.....meaning A has assets at X ...A fails...bringing down X.....D is another firm that had cash at X...and has to fold cuz they lost their cash.This happened with a few hedge funds I knew of.
CL had a liquidity issue due to several markets changing their relationships with others.
Since then where have the companies they owned gone in terms of value???

GHL and CL both benefited from lax oversite by CBTT.
CL however also took on the banking cartel on deposit instruments....and thus kept upward pressure on deposit rates.
So the opportunity was taken to kill it.

Now we get 1% for our deposits,
The banks have a negative cost of funds(meaning we pay them to hold deposits) when you account for fees
and the banks are over laden with deposits.

But I digress...wewould like for you to provide the details as requested above on the 6k return.

Keep this going into 2017.

[DVSTT]

Do local banks have limits or stipulations as to where they can or cannot invest their capital or how much they can invest locally or abroad?

[Redman]

DVSTT,
define what you are referring to as 'their capital'..there can be many interpretations....
1)Original Bank start up money-accumulated profits OR
2) deposits from customers or money they manage through their trust co, or
3)the banks investments...financed through any of the above.

All of them have some restrictions-generally the bank must conform to the industry requirements as set by CBTT.
Deposits taken have to be matched to their maturity and therefore are limited to what they can do....not to say that they dont have plenty latitude..Assets managed BY the bank would fall under normal portfolio management guidelines,allocations based on the goals of the client

The banks investment are open once they are dont put the bank at risk financially.

As you can imagine its a balancing act that is dynamic.


Hope this helps-

[DVSTT]

DVSTT,
define what you are referring to as 'their capital'..there can be many interpretations....
1)Original Bank start up money-accumulated profits OR
2) deposits from customers or money they manage through their trust co, or
3)the banks investments...financed through any of the above.

All of them have some restrictions-generally the bank must conform to the industry requirements as set by CBTT.
Deposits taken have to be matched to their maturity and therefore are limited to what they can do....not to say that they dont have plenty latitude..Assets managed BY the bank would fall under normal portfolio management guidelines,allocations based on the goals of the client

The banks investment are open once they are dont put the bank at risk financially.

As you can imagine its a balancing act that is dynamic.


Hope this helps-

Thanks a lot, that answered more than I asked. Coming from a science background, I catching my tail with finances lol.

[desifemlove]

Well you all say so but I asked the brokers were saying otherwise

Bourse, FCB, all do.

[jusjase44]

So you all trade on other Caribbean markets through bourse and FCB??

[desifemlove]

i don't. But a cursory look on their websites would provide that info..dummy.

[DVSTT]

Anyone looked at JMMB on TTSE? Their price has almost doubled, I see they're making a significant effort to diversify as well so it makes me think that they're value would appreciate further for 2017. Also they've appointed some new execs and a lot of their shares are coming up for sale recently.

The thing that I don't understand is why they have so much liability in the form of securities to be repurchased. Is this bonds they issued to fund their expansion? How would it affect their price over the long term?

[Redman]

So you all trade on other Caribbean markets through bourse and FCB??

Generally yes-JMMB for example should provide coverage as does WISE.

DVSTT- I have not looked at JMMBs books...and will not.

JMMB ans a non bank financial inst. would provide investments and short term funding instruments for clients that need those instruments...And also use those mechanisms to fund them selves

So the sell you a bond (issued by some one else) with a repo agreement-you invested through JMMB
The Sell THEIR bond with a repo -you financed JMMB

Also to confuffle the matter its possible that they wanted to short some bonds(playing higher interest rates) and have a over the counter contract that allows them to sell the bond and they have the right to repurchase the bonds at (hopefully) lower prices

So with out looking at the books ...it could be,normal business or normal investment for their own account.

Once there is more demand for the stock than supply the stock will move up.

So how it will affect the stock is any ones guess....and yes beyond the financial year its all guessing

[nixonliketheprez]

Anyone looked at JMMB on TTSE? Their price has almost doubled, I see they're making a significant effort to diversify as well so it makes me think that they're value would appreciate further for 2017. Also they've appointed some new execs and a lot of their shares are coming up for sale recently.

The thing that I don't understand is why they have so much liability in the form of securities to be repurchased. Is this bonds they issued to fund their expansion? How would it affect their price over the long term?

Hey before you sink ur money use this check list i did up for important factors to consider. I use it personally but it's always good to share I think. There are some other things to consider like intrinsic value etc. but this should be a help. It's based on Warren Buffett's strategy and is more geared to long term.

You have to sift through the financials to get the info. and well local companies ain't really the easiest to get the details from.

Some good advice would be to check out NEL, actually measures up to a good investment even though dividends are pretty shiddy.

Let me know what you guys think bout it

[X_Factor]

prestige holdings shares isnt a bad bet atm...with starbucks and kfc expanding in all areas i am sure the share price would increase
if i remember right the share price is already up since the introduction of starbucks

also looking at tcl....if cemex buys them outright and buys the shares as well, you could make a lil 50c-75c per share

and those are cheap shares

[DVSTT]

I've been kicking myself for not buying TCL in bulk when it was below $1.00.

As for prestige holdings, I'm not familiar with their financials, but I'm a bit weary of those companies that rely on USD for their products, especially as the local supply dwindles. I know KFC uses imported Tyson chicken and well everything in starbucks is imported from the US, also with them being franchise owners, won't they also need USD to pay the parent companies abroad?

[X_Factor]

^u sure about tyson chicken?....i dont think so, i woulda taste the difference easily not to mention the pieces would be quite large
they need to drop tgi though...i dont think that is as profitable as before with the introduction of so many similar style resturants

[desifemlove]

JMMB is expanding and growing, and rebranded, so they look a hot option.

It depends on the goals of the investor i feel. Prestige looks good too, i cannot see demand for pizza hut, subway, or any of the other brands they hold falling soon.

[DVSTT]

^u sure about tyson chicken?....i dont think so, i woulda taste the difference easily not to mention the pieces would be quite large
they need to drop tgi though...i dont think that is as profitable as before with the introduction of so many similar style resturants

I saw delivery freezer trucks filled with Tyson brand chicken offloading at KFC a few times in the past so I always assumed they used that right through. I hardly eat KFC so taste wise I doubt I'd notice.

[rspann]

Desi ah have ah lil $100 extra this month end ,where you feel ah should invest it for maximum returns?

[Redman]

Insurance companies...
General Insurance is required by law-as is vehicle insurance
Some have big non TTD portfolios
Increasing interest rates will be a plus
Post CL they would have cleaned house

buy GHL

[X_Factor]

Tuticorin Alkali Chemicals & Fertilisers Ltd.
an indian chemical company....check how their share price gonna skyrocket over the next year or 2 considering their recent accomplishments
when i initially check them based on an article i saw...price was under 10$

[DVSTT]

Tuticorin Alkali Chemicals & Fertilisers Ltd.
an indian chemical company....check how their share price gonna skyrocket over the next year or 2 considering their recent accomplishments
when i initially check them based on an article i saw...price was under 10$

How does one invest in the Indian stock market?

[X_Factor]

I wish i knew
i am sure the more experienced traders here can shed some light
but international markets is where the money is at

[ravindrapolo]

To keep it simple, I can run the statement and confirm this. I will not provide this info here tho. Client/ policy confidentiality. You guys can do your research yourselves also. Don't trust my word, don't trust anyone's word. Info is available for all on our websites. I would not say something that I couldn't back up with proof tho right? Any one that decides to invest in $US would know their decision is made not by simply hearing about this via word of mouth or website chatter. Our monthly index values are there for all to see. Did I mention too we have the option whereby you can pay said $us premiums using your VISA now ? I'm impressed as a customer too to see growth after 24 months on a medium term investment portfolio.

Well if Please do post your monthly returns.. I for one and the other tuners would like to see. Tell us where we can view such information. I will not provide information here tho. Well i will provide mines. So please provide me with ur monthly index. Just trying not to let my fellow tuners get caught in Guardian scheme. Encourage people in something beneficial. Am willing to post my policy summary to show my claim also. Since he cannot back up his Client 6K

[DVSTT]

So the return on your USD investment for the year was 2.92%?

[Redman]

Thats a really bad allocation for many reasons..
and the performance is reflecting that .
Risk and volatility are not to be avoided in total.

Note the % of stocks on the van guard sheet...GHLs balanced fund is mis allocated.

[eliteauto]

those funds I'm seeing being touted in this thread with those abysmal returns on investment and fees stacked in favour of the firms offering them ( not to mention the interest accrued by the firms in lending or investing the pooled capital). What exactly do you guys invest in them for? Is it a rainy day fund, to show a diversified portfolio or for retirement? Curious as to the mindset involved

[DVSTT]

Redman, what's your reasoning for guardian being a good investment?

[Redman]

-Financial Services regionally is a winner...as you see with the fund above you can have tootz performance but still charge fees,Insurance premiums are mostly profit. and elastic for a majority

-From what I remember GHL EARNS a chunk of hard currency from its over seas ops

-People are mandated to buy General Insurance -by law and life insurance by financing requirements,

-CBTT gives hard currency priority to re insurance premiums(so I think..they can keep all the USD internal but BUY USD with TTD here)

-Locally GG is a strong contender in the General Insurance market...as is GHL in Insurance.Insurance premiums are a function of values of the asset.

--With that last purchase by Lee Chin-they are looking to make moves that will increase shareholder value-and the price is not much different to where he bought in(what kinda due dili you think HE did to arrive at a purchase price and do you think he paid more or less than he thought it was valued at???

Stock

Very liquid
Its been range bound for ever-meaning any one likely to sell between here and say 20 prolly has sold already.
EPS aint bad-and I think will grow ..I speculate that they can mobilize resources to repurchase stock at these levels.

Its the stock I would build as big a position in that I can-if there is one stock you could own this would be it.
Keep buying till it hurts.
I think they paid 60 cents per share in dividends..on a $13 stock.
Thats 4.6%-with upside....why the ass would I hold cash in the bank???

Certainly a better investment than their funds rofl.

Thats off the top of my head-I eh going into any of the financials etc to dig-still lazy from Xmas
The above is my opinion and in response to DVSTT s question -I dont get paid by GHL or ANYONE ....so I have no allegiances to any party.

hope that helps breddo-as always anyone feel free to disagree with countra points-arguments make markets

[DVSTT]

What makes GHL a better investment than Sagicor?

[Redman]

IMHO...Sagicor is more conservative,less diversified...stricter underwriting.

The mutual culture still rules...but not necessarily a bad buy..