1/18/2011

It’s a big gamble

Goh Eng Yeow wrote an article about Bold Ambition and Big Gamble in the ST last week. SGX is taking a big gamble to turn itself into a New York or London in the finance industry. It is pulling all the stops, all the strings, putting money where it is to bring in the giants, the big funds and their big machines, high speed computers, to turn SGX into a world class bourse. In his comment he said, ‘The SGX has wagered a lot of time and money with no guarantee it will pay off.’ He concludes by saying that ‘the greatest irony of the SGX approach: For all its initiatives and innovations, the fate of its ambitious strategy now rests with the aussie politicians.’ Another irony that I may add is that the aspiration also rests on the small pool of small investors waiting to be eaten up by the big funds and their mean machines. The question I like to ask is whether Singapore has a big enough base of investors, with the dough, to be a world class stock exchange? Or does a world class stock exchange need a pool of small investors or just the big funds and their machines will do the trick? Another question of moral responsibility. In the madness to be big, are there considerations and systems put in the protect the small investors. Or the small investors are just collateral damages for the goal of being big for the sake of being big?

11 comments:

Wally Buffet said...

Have you seen a National Geographic film where you find a big fish, for example a shark or a whale being trailed by schools of much smaller fishes?

And yet, this school of smaller fishes is able to not only survive but flourish from the left overs eaten by the big fishes?

That's how our stock market will work when the big boys come with their mean machines.

So just relac bro.

Here's to more good years. Provided you are astute enough to pick the right shark to follow!

Hehe. :o)

Chua Chin Leng aka redbean said...

Wally, that theory applies only in the big ocean and the few sharks have an ocean of ikan bilis to choose from.

In a small pond with several big sharks and a few guppies, you know what? The sharks will be like Mr Pacman, swallowing everything in their path till the pond is clean up.

Wally Buffet said...

Some smaller fishes are not ikan bilis or guppies.

They are barracudas. Granted still smaller than the sharks.

Although I am agnostic, I believe that God almighty has a place in this world for everyone. Just that if you are not too greedy, things will work out for you.

Hehe. :o)

Matilah_Singapura said...

IMO, this is the correct strategy. The competition is brutal amongst the bourses -- to prevail you'd better be the 'best', with the 'brightest' and grow to be the 'biggest' and the most competitive.

Dun worry lah, the big investors with their sampans and tongkangs full of cash will come flocking.

Chua Chin Leng aka redbean said...

No, they are coming in VLCCs with loads of money but not to give away. They are not in for investment but to gamble big time. They are not here to be santa claus but to clean up the market, with unfair advantages.

Anonymous said...

When crooks are invited into the house, they should not be blamed for accepting the invitation. One should be happy for their patronage.

Wally Buffet said...

This is a brutal world.

It's all about advantages and advantages and sometimes unfair sleigh of hand. It's not right of course but that's how the system works. If the kitchen is too hot for the little guys, why get in, in the first place to be slaughtered?

Mom and Pop investment style is no longer in vogue unless they fancy swimming in a bay of sharks and barracudas with some stupid little guppies or ikan bilis waiting to be gobbled.

Put your money in the bank and get peanuts or better still the CPF still paying a decent return to cover some, not all inflation.

Safest place of course is your pillow.

Hehe. :o)

Anonymous said...

When the 2 casinos were set up, the govt take on the role of policing and ensure some kind of fair play.

With all the big funds/crooks/robbers coming in, who is responsible to ensure they play fair?

Anonymous said...

If you cannot stand the heat, get out of the kitchen!

Let those who are used to the heat of the pressure cooker burn each other to ashes.

They die their business.

Chua Chin Leng aka redbean said...

More Singaporeans would not be able to stand the heat. No maids dunno how to tie shoe lace or make a cuppa of kopi. No aircon cannot work, too hot. Bus stop too far, work too tough, NS too tough....

Could Singaporeans survive when the heat is on? Just wait till taking public transport cost $3 one way, a plate of char kway teow cost $10, and daddy and mummy's handouts used up, then sell properties and quickly run away....

Wally Buffet said...

Mr. Bean,

That day is closer than you think.

That's why the great thinker is looking into the future and is nudging us gently to get spurs biting into our behinds by allowing the deluge of lean and mean and hungry people to kick us into action.

For too long, we were too well fed, too well paid and too much pampered.

Welcome to the real world and that includes the "crooks" with their VLCC loads of money to teach us that a cloistered little stock market is only for the pimply kids.

Hehe. :o)