We standby cash to top up bank loan when property price drop or no rental to cover. Keep the bullets and launch to the right place when price down. What make you to suggest keeping cash in jail? You are welcome to keep yr cash in my safe at Ujana apartment or my sg properties. I will buy insurance if it is stolen.
There are so much money printing these few years by central banks. Japan has just unleashed a tsunami QE. Keeping too much cash while waiting for a correction to buy is quite dangerous. At Bukit Indah, a car wash shop raised the price from $6 to $11 RM just this week. I expect other car wash shops there to follow (currently around $8-10 RM). Same for other shops. And property prices will continue to go up. Even in Singapore, the Jan 2013 cooling measure is wearing off. Locals and foreign buyers are coming in again. There is just too much liquidity around.
Aggressive BOJ easing takes markets by storm
Strong signal to keep long-term interest rates low; monetary base to double in 2 years
By anthony rowley In Tokyo
THE Bank of Japan's Policy Board did all that was expected of it - and more - yesterday at its first meeting under new governor Haruhiko Kuroda, announcing sweeping new monetary easing measures that surprised and delighted Japanese financial markets while drawing strong praise from Prime Minister Shinzo Abe's government.
Entering what it called "a new phase of monetary easing both in terms of quantity and quality", the Bank of Japan (BOJ) promised to double Japan's monetary base within two years by dramatically increasing the amount of government bonds and other assets it purchases, while emulating other leading central banks in buying bonds right along the yield spectrum.
Mr Kuroda acknowledged at a briefing last night that the BOJ "is embarking on a huge purchase of government debt. Based on what we've decided today, our monthly purchases of government debt will total about 70 per cent of newly issued debt." But he emphasised that "I have no intention to monetise government debt".
By continuing and expanding "quantitative and qualitative" easing, the BOJ is going full throttle to achieve Mr Abe's aim of converting two decades of deflation in Japan into 2 per cent annual inflation within two years - something which earned high praise from market analysts and elsewhere.
"I am not worried about a spike in long-term yields or an asset price bubble" as a result of yesterday's measures, Mr Kuroda said. "The chance of this happening is actually very small."
The yen fell sharply against the dollar, sinking below 95 at one point in Tokyo yesterday - a drop of around 2 per cent - while also sinking sharply against other leading currencies. This will help to ease deflationary pressures on the Japanese economy while also boost corporate profits from exports, analysts said
Tokyo stock prices jumped 272.34 points, or 2.2 per cent, to 12,634.54 - close to a recent 4-1/2-year high - while Japanese government bond futures soared and the benchmark 10-year bond yield hit its lowest ever level at 0.425 per cent. Both were seen as signals of rising market confidence in Japan's prospects.
Markets were especially encouraged by the fact that the decisions of the BOJ's nine-member Policy Board under Mr Kuroda and two new deputy governors were unanimous. Reports of brewing discord among members had undermined confidence in the BOJ's ability to present a united front.
The central bank also upgraded its assessment of the Japanese economy, saying it "has stopped weakening and has shown some signs of picking up".
Finance Minister Taro Aso said the BOJ's decision "to embark on bold policy steps within such a short span of time was commendable" while Economics Minister Akira Amari said that the moves exceeded most expectations.
Economists were fulsome in their praise. "I can say that the BOJ came up with a perfect answer in response to market expectations," said Junko Nishioka, chief Japan economist at RBS Securities in Tokyo. "Kuroda made good on his promise of boosting monetary easing in terms of both volume and types of assets that the bank purchases."
Particularly important was the BOJ's decision to purchase Japanese government bonds of all maturities including 40-year bonds, taking the average remaining maturity of its purchases up from slightly less than three years to around seven years and on a par with that of the US Federal Reserve.
Pushing the maturity of the bond portfolio out so far was a "positive surprise", chief equity strategist Jesper Koll at JPMorgan in Tokyo told BT. It sent a signal that longer-term interest rates in Japan will stay low, encouraging capital investment and private consumption, he added.
The Policy Board pledged to continue "quantitative and qualitative monetary easing" in order to achieve its 2 per cent annual consumer price inflation target, "for as long as it is necessary to maintain that target" - again a confidence-boosting assurance for markets and for Japanese business.
Under its new monetary regime, the BOJ will pursue "monetary base control" by changing the main target in money market operations to the monetary base (cash and reserves at the central bank) instead of focusing on holding the bank's current overnight call rate at between zero and 0.1 per cent.
"The BOJ will conduct money-market operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen (S$796-929 billion)," the BOJ said. The monetary base is expected to expand to 200 trillion yen this year and to 270 trillion yen by the end of 2014 - almost doubling from 2012, when it was 138 trillion yen.
The central bank will boost asset purchases to double its holdings of government bonds in two years. It will revert to open-ended asset purchases and buy over 7 trillion yen of long-term government bonds per month, so that the balance of its bond holdings increases at an annual pace of 50 trillion yen.
These again are seen to be important steps in helping to restore consumer and business confidence in Japan because investors will be assured of being able to sell financial assets to the BOJ in future in the event that they need liquidity.
At the same time, it will step up purchases of exchange-traded funds (ETFs) by 1 trillion yen per year - something that is likely to drive Tokyo stock prices higher - and real estate trust funds (Reits) by 30 billion yen per year.
The BOJ will terminate the asset purchase programme introduced in 2010 by former governor Masaaki Shirakawa and temporarily suspend its self-imposed "banknote principle" designed to ensure that the central bank is not seen by markets to be directly financing government debt.
http://www.businesstimes.com.sg/pre...ssive-boj-easing-takes-markets-storm-20130405