2/04/2009

What is US$60b? It's only Madeoff!

Tony Tan reported that GIC was managing a fund of $450b and Temasek Holding managing a portfolio of $200b. These work out to be $650b. He also said that 7% was in cash and something like 30% in income paying investments. And we have outperformed the market! The market valuation of stocks worldwide has fallen by 42%. Our portfolio only lost 40% of its value. Not bad after taking some precautionary measures to trim down our investments in stocks and shares. So what is our paper loss to date. A 40% loss of $650n is $260n. But if we deduct the cash and other investment part, assuming 40%, then the sum invested in stocks and shares should be around $390b. A paper loss of 40% works out to be $156b. Still not a small sum of money. A little more than what Madoff has lost. But this is based on the above data and extrapolation. The actual amount loss, on paper, may be lesser. How much did we really lose? The number must be unspeakable.

5 comments:

Anonymous said...

Shh, the number is an unspeakable number.

'Outperforming the market' - very mischievous reasoning by Tony. 'Reasoning' - if one could call it that.

Anonymous said...

Hi RedBean,

Thanks for the more accurate guesswork.

But do factor in also the fact that they went big on property,which may not be captured in the stock index,so the actual paper loss is anyone's guess,unless Minister Tharman who declared that we did better than the more than 50% drop,and that as the minister in charge,he was happy.But funny that he did not ask whether the stakeholders are happy,as ONE stakeholder,I am not happy,if I invest myself,with this type of results,I would probably be bankrupt.

BTW,I sold all my stock first half of last year,not that I am brilliant,but just that I didnt feel that I was getting good results.

Sinner-Spore

redbean said...

good for you sinner. the stock market is kaput. you cannot have a viable stock market when it can be cornered and manipulated by a few big boys.

as for outperforming the market with a 40% loss, i am sure i can do better than that, if they just park some money for me to manage.

Anonymous said...

Redbean - you go overseas and get yourselves a PR status and get some new "look good" papers; get face injection to look a little whiter and give yourselves an x-ray over-shot to the head so the hair frizzle. Change name legally to BILL LORD HUNTINGTON or something, SINGAPORE salivate for your talent... HO CHIME will employ you to head up investments in Greater China. Dressed in black overcoat at all times & your trained half-british tougue will surely impress.

Welcome expat Super-Talent.

redbean said...

that's a good suggestion worth exploring.