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"Davis Double Play ": Mr. Market & Asset Bubbles- Part 2

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 I blogged about the concept of " Davis Double Play " ( here ) and explained that there are two very important components in determining the index of stock markets i.e P (Index)= EPS x PE Now, after the start of QT, we continue to see the market is adjusting to the "market expectation" of PE and compressing the PE to a more reasonable level. More and more data points showed that the US economy is slowing down from " Real Retail Sales, Housing Starts, Philly Fed Manufacturing Index, Empire State Manufacturing,  etc.." ECRI Weekly Leading Index Update   < Sources:  advisorperspectives.com> With such a high inflation data, the Consumer Sentiment by the University of Michigan also at a level never seen after GFC( Global Finance Crisis ), now is much lower than during the Covid-19 pandemic time. University of Michigan: Consumer Sentiment  (UMCSENT) It seems that the US economy heading towards recession is "inevitable" with FED turning more &q

"Davis Double Play" : Mr. Market & Asset Bubbles

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 The last two weeks must be a hectic week for Crypto investors as we had seen the collapse of Luna ( A type of stable coin) which wiped out almost $40 Billion of market cap from the Crypto-market. What is Terra Luna? Why did it Crash by 99.9%? <Sources:business2community.com> As I mentioned before, Crypto as a so-called " alternative asset " class is very risky and may not be suitable for all investors, especially for those with low-risk tolerance. Bitcoin as the " King " of Crypto may not collapse like " Luna " since it still has demands on certain "usage " like "currency" for some groups of people, but we may continue to see the huge fluctuations of the price like up and down of more than +/- 50%. For some other coins like "Luna", it will not be that lucky to enjoy such "privilege" and I am sure, "Luna" will not be the last of such coins to collapse, there will still be some to follow Luna

Portfolio & Dividends Update : 1st Half 2022

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 Wow ! my last blog post was on 23rd Jan 2022, almost 4 months ago, time flies. I am really lazy to write recently and have been busy lately as my mum passed away last month at the age of 88. It was peaceful, calm, and dignified. My mum was wheelchair-bound for almost 8 years but she was strong and healthy until last year during the lockdown when her conditions deteriorate. Much regret that I was not able to go back during the two years+ lockdowns period and only be able to make contact through video call. Before the lockdown, I try to make a trip back every month to see my mum and also catch up with my siblings. I think most of the elderly (including my mum), don't think you need to buy expensive things for them, just a simple meal will make them very happy ( can see from her smile when I go back and bring her out for dinner every time I go back). What they need are just someone to accompany them and talk to them and a listening ear. I am really glad that I could spend more time w

My Report Card 2021

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 Time flies, we are now at almost the end of Jan 2022. Did 2021 turn out to be what you expected or did you achieve the targets set for yourself in 2021? The Covid-19 pandemic continues to affect and has impacted all aspects of our life and working environment, on and off we see some good news on relaxing the social distancing rules but life is yet to return back to normal as we have in pre-pandemic. The Covid-19 virus continues to mutate and our mood swings also change together with these mutations, from "Delta " to "Omicron" and chances are pretty high that we might have a new one coming in near future. How many "booster jabs" we will really need it? Could "Omicron" be the last variant we have and this will be time we end this pandemic and "live with the virus", treating Covid-19 as an "endemic" and trying to return our life back to normal? Fingers crossed! Europe considers new COVID-19 strategy: Accepting the virus   <so
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