Showing posts from 2021

Investing in 2.96% p.a AAA Bond

Ops !! sorry, clickbait ... :D  Not investing in any corporates or government issued Bond but Mrs. STE and I just doing the voluntary contribution to our CPF accounts recently. We can't do the  RSTU( Retirement Sum Top Up)  since our SA (special account) already exceeded the FRS ( and BHS for MA already above $63K) but we still can do the VC3C ( Voluntary Contribution to 3 accounts ). The amount will be split into SA and OA with average interest rate of around 2.96%. For us, this is like 4 years bond with 2.96% coupon rate p.a since we still have 4 years to reach 55 years old. This might not be a good option for those who are still young and have many years to reach 55 since the top up is "irreversible” not like investing in bond where you still can sell it in secondary market when you need the money.  Alternatively, you may consider to top up your SA or MA if both account still not reaching the FRS or BHS since you can enjoy the higher interest rate (4% for MA/SA) and als

Regression to Trend

  Regression to Trend: Another Look at Long-Term Market Performance   < source :> " About the only certainty in the stock market is that, over the long haul, overperformance turns into underperformance and vice versa. Is there a pattern to this movement? Let's apply some simple regression analysis (see footnote below) to the question. Below is a chart of the S&P Composite stretching back to 1871 based on the real (inflation-adjusted) monthly average of daily closes. We're using a semi-log scale to equalize vertical distances for the same percentage change regardless of the index price range. The regression trendline drawn through the data clarifies the secular pattern of variance from the trend — those multi-year periods when the market trades above and below trend. That regression slope, incidentally, represents an annualized growth rate of 1.88%." <Image> Is the Stock Market Cheap?  &l

A Quick Update On My Portfolio : 21 Mar 2021

  One of the reader PM me about the remaining 20% of my portfolio which I didn’t highlight or put up in my previous update on Dividend & Portfolio Update :1 st Qtr 2021 ( here ) because I think those are quite small positions with just 20% of total value in another 30 stocks. In this quick update, I will just attach the chart of my total holding plus small change in my portfolio composition. I have added another Tech /growth stock in my portfolio – , another giant E-commerce ++ other than Alibaba , after seeing the stock dropped by around -29% from the ATH (all time high) achieved in Feb 2021. Since I have both giant China E-commerce company (with combine market share of more than 70% ) , okie, either one success , I am also happy. But why not PDD – Pinduoduo Inc .   (which dropped more than -43%) and with the remaining 7.5% market share. Of course, we know that PDD’s growth story is more promising where its’ active user had surpassed Alibaba recently but both (vs Alib

Dividend & Portfolio Update: 1st Qtr. 2021

  Market continued the upward trend and rebounded strongly in 1 st Qtr. 2021 with STI Index up by around +9%. With improving economic situation and more good news on economy recovery and the progress on vaccination, “old economy “stocks like bank, Oil & Energy, Consumer staples are having a good run recently while the Tech or growth stocks having a pullback due to increase in US 10 Years Treasury Yield. As I mentioned in my previous blogpost ( Volatile Market: A New Normal ), the pullback might just be a temporary “dip” in the market as market still being “flooded” with so much of liquidity, money just   moved around from one sector to another sector or so called "sector rotation". Increasing 10 years bond yield (or interest rate in general) might also be the good news for banking sector as this may improve their NIM while FED remain committed to keep the short-term rate "ultra low" for foreseeable future.   Is Market Valuation Still Cheap Now? I am no

Volatile Market: A New Normal

World stock market continued it strings of volatile trading sessions recently when 10 Years Treasury Notes hitting 1.5%, a sign that FED is going to increase interest rate in near term due to higher “inflation expectation “post pandemic as economic is going to restore back to Pre-covid 19 level.  <Image credit>       For me, it seems that the yield curve is just returning to normal level / pattern with upward slope and higher rate for long term treasury notes as compared to exceptional “ Inverter Yield Curve “during the pandemic. The short-term rate (1-5 years) remain extremely low and accommodative as mentioned by FED. The 10 Years Treasury rate mainly use to determine the mortgage rate and I think is quite healthy if rate is a bit higher than short-term as to indicate the risk on long term mortgage loan, also to avoid more speculative move in housing market. I am not sure if this increase of 10 Years treasury note will benefit the banking sector in near

Stock Market Looks Like A Casino Now : Have Fun !!

  GameStop the Market: Big Bets on Stock Make Wall Street Look Like a ‘Casino’ <>     The biggest bets made over the past couple days haven’t been placed in a casino on the Las Vegas Strip. Instead, the action’s taken place on Wall Street, as a group of stock traders on Reddit have aimed at hedge fund traders, who have made high-stakes wagers that businesses like GameStop and AMC Entertainment would stumble . The Stock Market is a Fun Casino <>   The stock market works  as if  people were investing money in companies; some indirect mechanism ties the secondary trading of stock to the allocation of capital.  1   And of course in the limit companies  can  raise money by selling stock. So buying stock is  like  investing money in a company in exchange for partial ownership of its projects, and the amount you should pay for a stock is basically the discounted present value of the company’s cash flows from its business. The mech
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