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Hi,
I would consider selected single premium insurance products as low risk as well. The lowest risk free product would be Singapore governement bonds.
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Replyso sorry!? Somthing happens before I finished my reply, so let me continue,,: ) I happen to share Chee’s comment, so base on his comment what would your high chance prediction be. More over I can only think of the only high chance of losing my principal is putting with the Singapore pools. Plse advise thx
wmt rgds
Hi David,
The high chance in my post is with reference to what happens to the principal after scenario 4 occurred.
IF scenario 4 happens, the principal will be more or less wiped out.
As to what are the chances of scenario 4 occurring, I can’t really give you any numbers now.
ReplyBased on the formula, there is a high chance you will not get back any of your principal. What High chance are we talking about? in % :- 50% ,75% what? therefore one should not invest in them is that it? that leads me to another question…given the present financial economic climate would you say which other investments have low chances of losing the principal(other than parking in FD/saving account or bonds? would appreciate if you revert.thx
ReplyHi David,
I am referring to the case of scenario 4 (refer to page 11).
In that event, the investor will end up with only the coupon payments and very little (almost nil) of his capital.
So that is the worst case scenario for this product.
I would consider selected single premium insurance products as low risk as well. The lowest risk free product would be Singapore governement bonds.
ReplyHi Lioninvestor ,
For JPMorgan AsiaConfidence Note-Series1, so far there is no Trigger event and the worst is already over i.e. it is not likely to have Trigger event by end of 2010.
Hence, most likely , the Scenario 2 will be applied.
rgds
Chee
ReplyI purchased this structured deposit few months back.
With the market uncertainty next year, how can I know the risk and performance of the 4 indices.
Hi Victor,
It is likely that the 50% barrier has been breached. If the 4 indices do not recover to be above the initial price on any of the valuation dates, you could be looking at a big loss in capital.
ReplyI would rather much prefer a gold-backed currency system than the fiat system.
The printing press devalues even the cash we hold. Nothing is safe. 🙂
ReplyOCBC, UOB Preference Shares or JP Morgan Asia Confidence Notes ………or whatever it is, I rather be safe than greedy!…..watch your principal as Cash is King!
I have shun away UNIT TRUSTs and I believe that “IN GOD WE TRUST!