Showing posts from September, 2019

0% or Negative Yields Are Becoming The “New Normal”

image credit to Would like to share some great articles on “Negative bond yield and QE” ...with more and more central bankers lowering the interest rate and implementing more QE, the world is flooded with liquidity and resulting   $17 Billion of     negative-yielding bond sitting and idling on various financial institution’s balance sheet around the world.     What does a negative bond yield mean? < source:> Why do investors buy negative yield bonds? <> image credit to Bloomberg With this unstoppable pace of money printing, the market will become more volatile... all conventional methods of assets valuation will also become obsolete... you may notice that it will become "new normal" for some S-REITs to have yielded lower than 4% (especially from those with a stronger sponsor like Mapletree or Capital families).

Keppel DC REIT : Wow ! Wow ! Wow

Congrats !! for those invested in Keppel DC REIT as share price shoot up to $2.13 as of closing on last Friday. It's about +21% increased vs price prior to asset acquisition and equity fund rising announcement on 16th Sep 2019. I am not so sure if the new acquisition will give a DPU boost by more than 21%, else why there is a sudden change in perception or valuation for such asset class REITs after the announcement. Keppel DC Reit to raise $473.8m to partially fund data centre acquisitions   <> F.O.M.O? T.I.N.A ? or The Sky's The Limit? By looking at the pace and % of the price increases, I think there is some kind of  " euphoria "  for the stock at this moment. Same as previous case on Capital Commercial Reit , we will still need to stick to fundamental valuation for REITs as the growth and revenue are not like those " tech stocks " that it could be " exponential " to some extent. May

President Trump : Make America ( STI Index ) Great Again !

image credit to Not All Index Are Created Equal I think most of us are using Index as bench-marking against our portfolio’s performance and from time to time, we often hear about buying index as a kind of passive investment. Some financial advisors are even proposing “ DCA” or dollar-cost averaging for Index with “buy and hold” strategy. “The average annualized total return for the S&P 500 index over the past 90 years is 9.8 %.” Guess this is the most “eye-catching” a phrase that often mentioned in the news which is also the most powerful words to attract investors pouring billions of dollars into Index ETFs under the so called a “passive investment” strategy. But remember that not all Index are created equal if the index is added with many “toxic stocks”, such an index will sure underperform than other world indexes.
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