Regular features from September 2004 105th Issue

The Digital Doctor - Patch me up

After many months of delay Microsoft finally released Service Pack 2 for its leading platform, Windows XP, last month. This latest upgrade is the largest to date from the software giant and has been viewed as a complete system overhaul rather than a simple operating system patch as released in the past. Microsoft stated “Service Pack 2 for Windows XP delivers proactive protection against malicious code by blocking exploits at the point of entry as opposed to simply focusing on patching known vulnerabilities.” as part of their marketing statement prior to the release of the software upgrade. The heavy 266 Megabyte download recompiles many core system components with new code protocols for its enhanced security functions. There are several new features to the service pack including a “ Security Center ” that monitors your system for security status and possible threats.

Taking into account the considerable size of the download and the issues that come with the installation of new upgrades home users may want to think twice before deploying the patch so soon. As with any new release there are several issues and conflicts that will arise with existing software and Microsoft have already released a list of about 50 programs that require tweaking before working properly with Service Pack 2 (SP2). Among the applications that are encountering problems are Web servers, remote desktops, file-sharing applications, FTP clients, multimedia streaming software and e-mail notifications. A number of systems-management applications and games also require manual modifications in order to work properly with SP2, according to Microsoft.

The biggest problem most users in Thailand will face is the heavy download which will take approximately 16 hours on a dialup connection. The actual installation of the service pack is also a time-consuming process as a large percentage of the Windows system code is re-written. However on August 16, Microsoft began pushing SP2 to XP users via its Automatic Update and Software Update Services patch-management services which should make the process a little smoother although still lengthy.

Microsoft have also published a “reasons to upgrade” paper, (http://www.microsoft.com/technet/prodtechnol/winxppro/maintain/sp2top.mspx), highlighting the major benefits that SP2 has. At a glance these include:

1) New Security Center

2) Improved Windows Firewall

3) Popup Blocker

4) Improved Internet Explorer security and add-on management

5) Easier wireless configuration

6) New technology support

The new Security Center keeps essential security information visible. Its tray icon turns red if there's a problem or yellow if new updates are available. Double-clicking on the icon brings up the Security Center window, showing the current security status in three areas: Firewall, Automatic Updates and Virus Protection. The problem arises when third party firewalls and anti virus software is installed that is not compatible with SP2. The only way to prevent the system constantly alerting you that you are not protected is to change the alert settings under the resources tab.

Microsoft states “Windows XP SP2 provides enhanced protection against spoofing and phishing attacks with changes to Internet Explorer.” which is made possible by major code modifications to the system core. Also a long awaited popup blocker, standard on almost every other browser for several years now, is included. You can also centrally manage IE add-ons, to enable or disable browser extensions, browser helper objects and ActiveX controls using an easy graphical interface.

The overall opinion so far on Service Pack 2 is that it is a larger and more drastic change to the Windows platform than previous patches. Some administrators are calling it a full operating system upgrade as opposed to a security patch and many IT professionals are urging home users to wait before diving into the digital deep end with this upgrade. Only time will tell how smoothly this latest edition from Microsoft will be integrated into corporate and personal systems and no doubt we will soon be seeing fix patches for SP2 available from Microsoft. Just another day waging the never ending war over internet security.

Previous issues of the Digital Doctor can be found on Digital Metrix

Last Month we looked at Barclays Equity Index going back to 1945 and how well equity investments have performed over long periods.

There is little doubt that equities are a dangerous place to be, in if you have a short investment horizon. But if you have ten or more years before realizing your investment, equities will generally come out on top with one big proviso. You really do need the psychological equipment to handle the bleak downturns then equities will surely bring. It's been my experience that there's no free ride; anywhere in life.

This Month I came across the past history of the Standard & Poor's 500 index.

This index has not suffered a loss in any 15 year period going back to 1926.

This basket of the 500 large cap U S stocks with dividends reinvested delivered average annual gains of 11.3% between January 1926 and December 1999 easily beating inflation the No 1 enemy of investors.

If we compound 11.3% each year in real money terms what does it mean?

A US$1,000 investment in the S&P 500 in January 1926 would have grown to US$2,845,628 to day

But not many of us invested US$1,000 in 1926 and are still running around Hua Hin with nearly 3 Million bucks. The point of the illustration is to make a case for sticking in there.A more realistic scenario to make the point is the following.

Had you invested US$10,000 in the S&P at the end of December 1989.it would have begun ominously. Stock prices had crashed in October 1987 but the benchmark Dow Jones Industrial Average clawed its way back over the following year. By the middle of 1990 the Dow had risen well above its precrash levels. But as the US economy slumped into recession, the market tumbled sharply losing roughly 20 percent between July and October 1990.

After that the tide turned.

For much of the next eight years the stock market never looked back. The $10,000

which had ridden roughshod in the early years by December 1999 was worth $53,243. Another proof that time is money

Of course it's easy being wise in hindsight. The wounds of a 20% downturn on your portfolio in real terms at the time of the fall is forgetting about your grandchild's education forgetting about that new holiday home and if you're elderly a more modest retirement than planned.

Even though we are familiar with the investment benefits of staying in the market how many of us who say invested $1 million in 1989 would have sat tight when we had lost $200,000? If we had of course we would have had a nest egg of over 5 million 10 years later.

I'm making this point so strongly because I know that not all of us are equipped to handle these crippling losses.

Look at these two scenarios.

You are given $1,000. Choose between (a) a sure gain of $500 or (b) a 50% chance to gain $1,000 and a 50% chance to gain nothing.

Question 2 You're given $2,000 Choose between (a) a sure loss of $500 or (b) a 50% chance to lose $1,000 and a 50% chance to lose nothing.

Look closely at the problem. The possible outcome from each situation is the same but how the question is phrased can influence your decision Richard Thaler of the University of Chicago maintains that we avoid risk to capture additional gain but we will take a risk to avoid a loss. These two questions if answered honestly seem to illustrate that.

The bottom lines when all the little games are over is how well will you sleep at night after a 20% drop in your portfolio. You might have the dream of increasing your wealth in the future but remember you could loose another 20% in the next month.

Past historical performance is a great guide but the guarantee of future performance is never there in equity markets. Think hard and long before jumping in. If you choose equities make sure you have the time and the stomach for them.
For further information on this or any area of Personal Finance contact Jerry at info@swissinvestcenter.net or visit the website: www.swissinvestcenter.net

Rotary Roundup

The Rotary Club of Hua Hin had another busy month. The Queen's Birthday and Mother's Day ceremonies on the 12th of August being of greatest importance.

Happy Birthday to two Rotarians this month Rtn Somboon, and Rtn Thantawan.

The picture on the below left shows two young Rotaractors from Mexico .

The Rotary Club meets every Thursday evening at the Grand Hotel and Plaza on Petchkasem Road .

Hua Hin Dog Rescue Center - Adoptions

We at HHDRC are delighted to announce our first overseas adoption! An American family, living in Bangladesh , came to Hua Hin on holiday. They saw an article about us in The Observer magazine, and visited us with the intention of adopting a dog. After looking at several dogs, they narrowed their choice down to two, "Zag" and "Cha am", and after lengthy discussion,

"Cha am" was the lucky 'jet setting' dog!

By the time you read this, "Cha am" will be living with his new family, the Elliotts in Dhaka . He will spend a year there until Mr. Elliott's business commitments are over & then he will travel with them to the US ! Naturally, all of us (especially "Cha am") are overjoyed that a puppy brought in from Cha am beach that has lived all his life in the Center is getting such a wonderful new life.

Yet another international adoption will take place in the next few months. Gary & Katrina, a couple on holiday from UK , contacted Dawn about a puppy they had seen in a soi and fallen in love with. After a lot of thought, they decided, despite the cost & difficulties involved, they wanted to take her to UK . HHDRC have agreed to take her in and make all the arrangements in Thailand . "Jade" their new puppy is now being taken care of by us & when she has had the relevant vaccinations & all the paperwork is in order, she will be embarking on a great new life too!

We at HHDRC have many healthy & loving dogs of all ages that need homes. We need to make space for new sick and injured dogs in need, and the dogs need loving owners. If you are considering getting a dog, please think of one of ours; they are free, healthy, vaccinated and we can tell potential adopters a lot about their history and personality to match the right family with the right dog. If you would like to meet any of the dogs, please call 01 9814406 or 01 8534586. Thanks to everyone who has adopted one of our dogs.

Tantawan’s Kitchen

I'm sure that every tourist knows Som Tum very well and a few will be a little scared of it, but you should try it this way and it smells not too bad…

Ingredients:

1 Chili,

2 Garlic

3 Papa ya chopped into strips

4 lemon,

5 tomato cut to size

6 sugar

7 seasoning

8 green bean

9 pea nuts

10 dry prawns

•  fish sauce

First job is to pound the garlic and chili (depend on how hot you like) papaya is then added then squeeze lemon 2 pieces, sugar 1 tea spoon, seasoning end of finger, fish sauce, prawns, peanuts, tomatos, then mix together. It will be nice with grilled pork or chicken

... A roi! A roi!

Toby clearly didn’t enjoy himself on his birthday!

Boom with friends (and Pete Newman is in there somewhere)

Nut and Hannes take a moments break at the grand opening of the new Pasta Factory

Jim and Gary, dare we say, endulging in the Gay Gordons!

Young Augie enjoys his 2nd birthday with mum and dad

 
Paul and Tom sharing a birthday....... and then . . .

Amy’s beach party, with dad Anthony and mum Joy

Kirk with daughers, Angella, Sabrina and wife Oy, celebrating 10 year anniversary and his birthday

Useful Telephone Numbers for Hua Hin

Railway station
032-512 770, 032-511 073

Bus station of Hua Hin
032-511 654, 032-512 543

Bus station of Prachuabkirikhan
032-601 901

Bus station of Pranburi
032-621 443

Hua Hin Hospital
032-520 401

Dog Rescue Center
0-1981 4406

Wild life Rescue Center (Tayang)
032-458 135

Department of Land Cha-am office:
032- 430 846-7

Department of Land Hua Hin office:
032-536 164, 032-512 407

Department of Land Prachuabkirikhan:
032-611 211

Department of Land Pranburi
032-622 199

Local Government (Hua Hin)
032-521 340, 532 471

Local water supply
032-511 677

The Power Board of Hua Hin
032-512 215, 032 513 165

Observer office:
032-531 078

Red Cross.
032-512 567

San Paolo Hospital
032-532 576-85

Polyclinic International
032-516 424, 032-516 425

Shell Cooking Gas
032-511 144, 032- 515 620

The Communication Authority of Thailand
(Hua Hin)
032-511 351

Rotary Club of Hua Hin
0-1916 6637
Meeting every Thursday 8.pm
at Hua Hin Grand Hotel & Plaza

Features

this month

regulars

stories

free ads

sports

golf

funnies

info

back issues