Dark chocs 'help cut heart attack risks'

SYDNEY – Dark chocolate has ‘significant’ benefits for high-risk cardiac patients and could prevent heart attacks and strokes, Australian researchers say.

Eating 100g of chocolate with a 70 per cent or higher cocoa content every day was an effective risk reduction measure, according to a study by Melbourne’s Monash University

Lead researcher Ella Zomer said 70 fatal and 15 non-fatal cardiovascular events per 10,000 people could be prevented.

‘Our findings indicate dark chocolate therapy could provide an alternative to or be used to complement drug therapeutics in people at high risk of cardiovascular disease,’ Ms Zomer said of the study published in the British Medical Journal.

Her research partner, Professor Chris Reid, said measurements from the 2,013 Australians studied, all of whom had classic risk factors such as high blood pressure and elevated cholesterol or body weight, were run through epidemiological modelling.

The projections of likely deaths and other non- fatal events between those who consumed dark chocolate and those who did not were compared and there was a notable difference.

High-cocoa chocolate is beneficial because it contains antioxidant chemicals called polyphenols which help keep blood vessels dilated, thereby reducing blood pressure and improving blood flow. However, experts caution that excessive consumption of dark chocolate leads to obesity, itself a cause of cardiovascular disease.

AGENCE FRANCE-PRESSE

Quote of the Week

“Man had always assumed that he was more intelligent than dolphins because he had achieved so much…the wheel, New York, wars and so on…while all the dolphins had ever done was muck about in the water having a good time…

the dolphins had always believed that they were far more intelligent than man… for precisely the same reason.”

~ Douglas Adams

Pale Blue Dot

Consider again that dot. That’s here. That’s home. That’s us. On it everyone you love, everyone you know, everyone you ever heard of, every human being who ever was, lived out their lives. The aggregate of our joy and suffering, thousands of confident religions, ideologies, and economic doctrines, every hunter and forager, every hero and coward, every creator and destroyer of civilization, every king and peasant, every young couple in love, every mother and father, hopeful child, inventor and explorer, every teacher of morals, every corrupt politician, every “superstar”, every “supreme leader”, every saint and sinner in the history of our species lived there – on a mote of dust suspended in a sunbeam.

~ Carl Sagan (1934 – 1996), Pale Blue Dot: A Vision of the Human Future in Space (1994)

HK must kick its property addiction

HK must kick its property addiction
Andy Xie warns that Hong Kong’s dependence on the housing sector to drive economic growth is feeding another asset bubble. When it bursts, he says, the government should resolve to kick the addiction

Apr 23, 2012

Hong Kong did not learn from the property crash and economic collapse of 1998. Instead, it has tried hard to reinflate the bubble. After squeezing supply for over a decade and with the help of the US Federal Reserve’s zero interest rate, the bubble is back. But it is a Pyrrhic victory.
Continue reading “HK must kick its property addiction”

How Exercise Could Lead to a Better Brain

By GRETCHEN REYNOLDS
New York Times
April 18, 2012

The value of mental-training games may be speculative, as Dan Hurley writes in his article on the quest to make ourselves smarter, but there is another, easy-to-achieve, scientifically proven way to make yourself smarter. Go for a walk or a swim. For more than a decade, neuroscientists and physiologists have been gathering evidence of the beneficial relationship between exercise and brainpower. But the newest findings make it clear that this isn’t just a relationship; it is the relationship. Using sophisticated technologies to examine the workings of individual neurons — and the makeup of brain matter itself — scientists in just the past few months have discovered that exercise appears to build a brain that resists physical shrinkage and enhance cognitive flexibility. Exercise, the latest neuroscience suggests, does more to bolster thinking than thinking does.

The most persuasive evidence comes from several new studies of lab animals living in busy, exciting cages. It has long been known that so-called “enriched” environments — homes filled with toys and engaging, novel tasks — lead to improvements in the brainpower of lab animals. In most instances, such environmental enrichment also includes a running wheel, because mice and rats generally enjoy running. Until recently, there was little research done to tease out the particular effects of running versus those of playing with new toys or engaging the mind in other ways that don’t increase the heart rate.

So, last year a team of researchers led by Justin S. Rhodes, a psychology professor at the Beckman Institute for Advanced Science and Technology at the University of Illinois, gathered four groups of mice and set them into four distinct living arrangements. One group lived in a world of sensual and gustatory plenty, dining on nuts, fruits and cheeses, their food occasionally dusted with cinnamon, all of it washed down with variously flavored waters. Their “beds” were colorful plastic igloos occupying one corner of the cage. Neon-hued balls, plastic tunnels, nibble-able blocks, mirrors and seesaws filled other parts of the cage. Group 2 had access to all of these pleasures, plus they had small disc-shaped running wheels in their cages. A third group’s cages held no embellishments, and they received standard, dull kibble. And the fourth group’s homes contained the running wheels but no other toys or treats.

All the animals completed a series of cognitive tests at the start of the study and were injected with a substance that allows scientists to track changes in their brain structures. Then they ran, played or, if their environment was unenriched, lolled about in their cages for several months.

Afterward, Rhodes’s team put the mice through the same cognitive tests and examined brain tissues. It turned out that the toys and tastes, no matter how stimulating, had not improved the animals’ brains.

“Only one thing had mattered,” Rhodes says, “and that’s whether they had a running wheel.” Animals that exercised, whether or not they had any other enrichments in their cages, had healthier brains and performed significantly better on cognitive tests than the other mice. Animals that didn’t run, no matter how enriched their world was otherwise, did not improve their brainpower in the complex, lasting ways that Rhodes’s team was studying. “They loved the toys,” Rhodes says, and the mice rarely ventured into the empty, quieter portions of their cages. But unless they also exercised, they did not become smarter.

Why would exercise build brainpower in ways that thinking might not? The brain, like all muscles and organs, is a tissue, and its function declines with underuse and age. Beginning in our late 20s, most of us will lose about 1 percent annually of the volume of the hippocampus, a key portion of the brain related to memory and certain types of learning.

Exercise though seems to slow or reverse the brain’s physical decay, much as it does with muscles. Although scientists thought until recently that humans were born with a certain number of brain cells and would never generate more, they now know better. In the 1990s, using a technique that marks newborn cells, researchers determined during autopsies that adult human brains contained quite a few new neurons. Fresh cells were especially prevalent in the hippocampus, indicating that neurogenesis — or the creation of new brain cells — was primarily occurring there. Even more heartening, scientists found that exercise jump-starts neurogenesis. Mice and rats that ran for a few weeks generally had about twice as many new neurons in their hippocampi as sedentary animals. Their brains, like other muscles, were bulking up.

But it was the ineffable effect that exercise had on the functioning of the newly formed neurons that was most startling. Brain cells can improve intellect only if they join the existing neural network, and many do not, instead rattling aimlessly around in the brain for a while before dying.

One way to pull neurons into the network, however, is to learn something. In a 2007 study, new brain cells in mice became looped into the animals’ neural networks if the mice learned to navigate a water maze, a task that is cognitively but not physically taxing. But these brain cells were very limited in what they could do. When the researchers studied brain activity afterward, they found that the newly wired cells fired only when the animals navigated the maze again, not when they practiced other cognitive tasks. The learning encoded in those cells did not transfer to other types of rodent thinking.

Exercise, on the other hand, seems to make neurons nimble. When researchers in a separate study had mice run, the animals’ brains readily wired many new neurons into the neural network. But those neurons didn’t fire later only during running. They also lighted up when the animals practiced cognitive skills, like exploring unfamiliar environments. In the mice, running, unlike learning, had created brain cells that could multitask.

Just how exercise remakes minds on a molecular level is not yet fully understood, but research suggests that exercise prompts increases in something called brain-derived neurotropic factor, or B.D.N.F., a substance that strengthens cells and axons, fortifies the connections among neurons and sparks neurogenesis. Scientists can’t directly study similar effects in human brains, but they have found that after workouts, most people display higher B.D.N.F. levels in their bloodstreams.

Few if any researchers think that more B.D.N.F. explains all of the brain changes associated with exercise. The full process almost certainly involves multiple complex biochemical and genetic cascades. A recent study of the brains of elderly mice, for instance, found 117 genes that were expressed differently in the brains of animals that began a program of running, compared with those that remained sedentary, and the scientists were looking at only a small portion of the many genes that might be expressed differently in the brain by exercise.

Whether any type of exercise will produce these desirable effects is another unanswered and intriguing issue. “It’s not clear if the activity has to be endurance exercise,” says the psychologist and neuroscientist Arthur F. Kramer, director of the Beckman Institute at the University of Illinois and a pre-eminent expert on exercise and the brain. A limited number of studies in the past several years have found cognitive benefits among older people who lifted weights for a year and did not otherwise exercise. But most studies to date, and all animal experiments, have involved running or other aerobic activities.

Whatever the activity, though, an emerging message from the most recent science is that exercise needn’t be exhausting to be effective for the brain. When a group of 120 older men and women were assigned to walking or stretching programs for a major 2011 study, the walkers wound up with larger hippocampi after a year. Meanwhile, the stretchers lost volume to normal atrophy. The walkers also displayed higher levels of B.D.N.F. in their bloodstreams than the stretching group and performed better on cognitive tests.

In effect, the researchers concluded, the walkers had regained two years or more of hippocampal youth. Sixty-five-year-olds had achieved the brains of 63-year-olds simply by walking, which is encouraging news for anyone worried that what we’re all facing as we move into our later years is a life of slow (or not so slow) mental decline.

Set up rainy-day fund before investing

Given uncertainty and higher costs of living, experts advise saving 6 to 12 months of pay
01 Apr 2012
by AARON LOW

One of the most basic rules for personal financial planning is to establish a personal emergency fund for a rainy day. The conventional wisdom is that the emergency fund should comprise between three and six months’ worth of one’s salary. So for instance, if a person earns $4,000 a month, his emergency fund should be built to at least $12,000.

But increasingly, this conventional wisdom is being challenged on many fronts.

For one thing, financial advisers say that the uncertain economic outlook and higher costs of living mean that three months of savings may simply not be enough.

Mr Patrick Lim, director of financial advisory firm PromiseLand, advises his clients to save between six and 12 months of salary as an emergency fund.

“I see a lot of people who, in their 40s, get retrenched, and they can’t find a job easily. They may take up to a year (to find another job) and even then, they may have to face a pay cut,” he says.

“Call me conservative but I prefer to be safe than sorry.”

Mr Christopher Tan, chief executive of financial advisory firm Providend, agrees and adds that it is not surprising that in the United States, financial experts are saying 10 months of expenses should be set aside as emergency funds.

But whether it is six or 12 months, all financial experts say putting aside a sum of money should be a top priority for everyone.

Financial adviser Leong Sze Hian says it is absolutely crucial that people focus on building this fund first, even before thinking of buying a house or car.

“They spend and spend, then they lose their job. They end up having to sell off to pay debts or cashing out on their insurance policy before maturity which will cost them a lot more,” he says.

It is unclear whether Singaporeans have adequate savings for such emergencies, but anecdotal evidence from financial advisers points to an alarming lack of awareness.

Mr Lim and Mr Leong say the majority of people they meet do not consciously set aside such funds, either because they think it is not important or they are unaware that they need to.

Says Mr Leong: “It’s not that difficult to achieve and everyone, whether low-income or high-income, should try to do this.”

For the big spenders, here are five tips to get started on building the emergency fund:

Budget, budget, budget. You can’t start saving until you know how much you spend, says Mr Leong.

“Get your family together to sit down and figure out what money comes in and what goes out. Then you will be able to see what can be cut and how to save,” he says.

Set up an automated transfer that channels part of your salary to a savings account.

Says Mr Tan: “Every month, upon getting your net salary, before you even spend your money, stash away your monthly saving amount to another account.

“Continue to do this till you reach your emergency fund. Beyond that, the monthly ‘saveable’ can now be invested.”

Save before you invest. If you have just started working, you should save first before buying a car, says Mr Lim.

“One way to accumulate savings is to look at topping up your Central Provident Fund. For the first $20,000 of your Ordinary Account, you get 3.5 per cent; for the Medisave and Special accounts, you get 5 per cent for the first $40,000,” he says.

“Given the low interest rate environment, that’s a gold mine. Focus on maximising the returns first from these savings.”

Break down your expenditure to the last dollar, including credit card bills. Once you see exactly how much you spend versus how much you bring in, it will be clear how much you need to cut back on, says Mr Tan. Stay clear of debt, including charge and credit cards. If you need to swipe the plastic, make sure you pay it back in full. There is always the temptation to spend more than one has, since one does not quite see the bill until later. But if you need to use the credit card, pay it back in full. Snowballing on credit card debt is the surest way to destroying any kind of savings.

Why protection?

Investment and protection are two distinct strategies that address two very different needs. Both, however, are necessary in order to meet an individual’s financial goals

Manpreet Gill, Senior Investment Strategist, Standard Chartered Bank
04 Jan 2012

MOST of us tend to relate our financial goals with our investments. Within this framework, success in our investments correlates with meeting our investment goals, while protection is usually incorporated to the extent that it addresses the downside risks of the investment portfolio.

We think protection and its role in meeting one’s overall financial goals, however, have a much wider meaning. Downside risk extends beyond the risk of losses on one’s investment portfolio. For example, if an individual were unfortunate enough to be rendered disabled such that returning to a regular job was impossible, his or her income would be reduced or stop completely. But financial commitments and goals will not change. Without a similar level of income, it would be increasingly difficult or impossible to meet their financial goals.

In our view, investment and protection are two separate, but highly complementary activities that work together to help you meet your financial goals. Investments focus primarily on growing your capital (or just staying ahead of inflation). Protection, on the other hand, focuses on ensuring continuity of cash flows so that you are able to meet your commitments even if your primary source of income reduces, or stops.

There are, in our view, two significant risks that should be addressed through a protection plan, over and above any existing investment strategy that one may have in place.

The first is the risk of early mortality or disability. This is the obvious one – however unfortunate and unlikely, if mortality or disability were to occur then your income would cease. Your family’s financial commitments, however, would not. An investment portfolio cannot fully address this risk because a financial market instrument that allows you to directly hedge against this risk does not exist.

The risk of early mortality or disability is also highly uncertain in terms of timing and likelihood. Protection – in this case executed via insurance – is necessary over and above one’s investment portfolio in order to mitigate this risk and ensure one’s family is able to meet financial commitments such as education costs and ordinary living expenses.

The second is the risk of longevity. This is less obvious. According to World Bank data on life expectancy, the average Singaporean national born in 1965 could expect to live till the age of 67. The average national born in 2009, however, could expect to live till the age of 81. There is a greater risk, thus, that an individual born in 2009 outlives his or her savings or investments.

Investments can help somewhat in the second case, but they cannot provide a solution alone. Assuming a retirement age of 60, the individual born in 1965 would have to fund only seven years of retirement without a regular income. The person born in 2009, however, will have to fund 21 years of retirement without an income. This additional money has to come from somewhere.

In our view, there are a few ways in which individuals can mitigate this risk.

• Setting aside additional funds is the intuitive solution, but this is easier said than done. All factors held constant, this would require a higher savings rate over one’s lifetime on average.

• Working longer would be one solution. This would both raise total lifetime earnings (and therefore savings) and reduce the length of retirement without income.

• Starting to save and invest earlier would also help. This, together with a strong asset allocation approach, would help increase the chances that investment returns meet target levels.

To mitigate longevity risk, it makes sense to start the savings and investment process early, and to use a long-term asset allocation process. This is important simply because it increases the chances of meeting one’s financial goals while potentially lowering the volatility of returns.

Following a good asset allocation strategy can be central to capturing solid investment returns over time by (a) reducing the chances of not being invested in a winning asset class, and (b) helping avoid selling at the worst possible time.

To use an illustrative example, a portfolio consisting of 100 per cent global equities would have generated a cumulative return of 181 per cent over the past 20 years. However, a diversified portfolio consisting of 60 per cent global equities and 40 per cent global bonds would have returned 233 per cent over the past two decades.

While intuitively one can put together a good argument that equities should outperform bonds over the long run, clearly this was not the case over the past two decades. An asset allocation-based approach helps to ensure you remain invested.

The aspect of timing brings us to our second point – end-points do matter. In the above example, year-by-year comparisons would show that the somewhat counter-intuitive returns can be attributed to poor returns in equities in the last few years alone. However, for someone retiring around this time and selling their investments, this particular choice of end-point would have a real impact.

This risk can be reduced by

• Starting to invest early so that over the course of many business cycles one can reduce the risk of missing out on the best parts of a business cycle.

• Modifying the asset allocation breakdown as one approaches retirement

Investment and protection are two distinct strategies that aim to address two very different needs. Both, however, are necessary in order to meet an individual’s financial goals.

The risk of early mortality or disability and rising average longevity are two risks that are an important component of an individual’s financial plan, but they both cannot be addressed by investments alone. It is, in our view, important to have protection in place together with an investment plan in order to mitigate the risk of not meeting one’s financial goals.

Home of HK$33 wontons could fetch HK$180m

An example of why you should never sell a good asset.

Home of HK$33 wontons could fetch HK$180m
Ho Hung Kee’s landlord puts famed noodle shop up for sale amid Causeway Bay retail boom just a year after buying it from family for HK$100m
Sandy Li
SCMP Apr 11, 2012

A 1,000 square foot noodle shop that has survived in Hong Kong’s cutthroat restaurant market for 38 years and boasts a Michelin star is in the news – but not for its lunchboxes.

Just a year after being sold for HK$100 million, the long, narrow shop space that houses Ho Hung Kee is up for sale again and could fetch nearly twice the price. The street-level shop at 2 Sharp Street East in Causeway Bay, the world’s second-most expensive street for retailers, is now valued at around HK$180 million – including its 600 sq ft cockloft.

The Ho family, who have operated Ho Hung Kee since 1946, bought the shop for HK$350,000 in 1974, but decided to cash in on rocketing retail property prices, and last year sold the shop to an investor for HK$100 million on a two-year lease-back.

Property consultants said the wonton noodle restaurant currently pays about HK$125,000 a month in rent, and the lease is due to expire in mid-2013. Not counting utilities, salaries and food costs, that means Ho Hung Kee needs to sell 126 of its HK$33 bowls of wonton noodles a day, seven days a week, to cover the monthly rent payment.

Isaac Wai, a senior marketing manager at Ricacorp Properties said a 400 sq ft shop selling T-shirts at 9 Sharp Street East, opposite Ho Hung Kee, is paying HK$170,000 a month, while another at 7 Sharp Street East is being offered for lease at HK$200,000 a month.

“The shop could definitely pay HK$250,000 in rent a month, and if it changes hands at a higher price, it’s logical for the new owner to raise the rent when its lease is due for renewal,” he said.

It is unclear how the property sale will affect the noodle shop, still run by the Ho family, according to a woman who identified herself as the owner.

“It’s too early to say,” she said. “We’ll continue with business as usual because our lease hasn’t expired yet.”

But she also said it would be tough to survive if the landlord raised the rent significantly.

“We only charge HK$33 for a bowl of wonton noodles. But thanks to our loyal customers, our business is still strong at the moment.”

The family plans to open a new shop in the soon-to-be opened Hysan Place in Causeway Bay, she said.

Yesterday, the property’s owner appointed Colliers International to offer the shop for sale.

Pierre Wong Tsz-wa, chief executive of commercial property agency Midland IC & I, said the owner wanted to cash in on the retail boom.

“Due to tight supply, retail shops in Causeway Bay have fetched jaw-dropping prices,” said Wong, who estimated that the shop, with its proximity to Times Square, could fetch as much as HK$180 million .

Helen Mak, director of retail services at Colliers International Hong Kong, said two recent transactions in nearby Lee Garden Road had generated more than HK$200,000 per square foot.

“Space is scarce, so retail properties in the district are being snapped up the minute they come on the market because investors see the potentially high returns,” she said.

The monthly rent for Ho Hung Kee in the current market could go as high as HK$350,000, she said.