It's Christmas time! When we do come back after Christmas, we will have our view on the new year 2011 and our favorite picks next week.
My own personal plans which included buying a car and moving house for next year is looking nervous because of the very sharp rise in COE prices. Being an investment professional makes buying a car even harder for me because I know how much of a depreciating asset a car is (at least $10,000 a year in expenses if not more depending on the car you buy), and the same amount invested over time each year will yield substantial gains. As such, I view the monthly increase in car COE prices with substantial dismay.
The increase in car COE prices does mean one thing though. Many Singaporeans are feeling richer now, and hence they are willing to pay increasing prices for car COEs. It also signifies a strong amount of confidence in the growth prospects of the Singapore economy, and strong job outlook.
I think when I finally do buy a car when I move house next year, it will likely be a used car … if I buy one at all. A brand new car does have a strong emotional pull to it (as with anything you buy that comes brand new). But would I pay so much more just so that I can get that emotional rush from getting a new car? Perhaps one of the new year resolutions for 2011 for me would be to control my emotional impulses on things like buying a car. If I can control my fear during a market crash, and greed during a bull run, then surely I should be able to control this!
Oh well, there’s still quite some time before I move house. And in the meantime, I wish all FSM investors a very merry Christmas!
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