STE's Stocks Investing Journey

 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...

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 :GuruFocus.com>       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 bank...

<image credit to: stockinvestor.com> Why is Wall Street soaring while Main Street is burning? <source : nbcnews.com> The terms “ Wall Street” vs “Main Street” gets tossed around a lot in conversations about the financial industry recently and continue being headlines in major newspapers or financial portals. Just months into the coronavirus crisis, many are already pointing to the striking contrast between what has happened to the real economy and financial markets a.k.a “Wall Street vs Main Street” conundrum.   “Mr Market “ is irrational, as usual, while millions of peoples around the world had lost their jobs due to this COVID 19 pandemic and economy are expecting to shrink with weaker consumer demand and lowest PMI, yet stock market soar, to a level almost same as in pre-COVID market environment, a perfect “ V ” shape recovery. The huge divergence and disconnection between these two “ streets “ caught many of us by surprise.

<Image credit to seekingalpha.com> Fear ? No More You may notice that market continue to perform well, rebounded strongly after 1 or 2 days blip and dip crisis after crisis. US and European stock indices closed at record highs, while their Hong Kong and Chinese counterparts built on a rebound, as investors calmed their nerves over the new coronavirus outbreak that has swept across Asia. Even in previous Iran-US geopolitical conflict, the market also look very calm. Trade war – no fear , Iran-US Geopolitical crisis – no fear , COVID-19 Coronavirus Crisis – no fear <image credit to cleanpng.com> https://www.cleanpng.com/free/no-fear.html

Today mark the last trading day of Oct 2018, Yes! Indeed, it's a "choppy and volatile" month for STI and world markets. DJ could swing more than 600 points intra-day from positive to negative. Well, that is really the characteristic of "Mr Market", it swings like a pendulum. Again, many of my friends are asking me if I am selling my stock as the market seems very volatile and 'risky" ( for them ), but my answer to them is the same, "No", I am not selling but just do some "portfolio reshuffling " on some of my holdings ( which I will update more in my next Dividend and Portfolio Update).  In view of such "crazy market " , some might be thinking of getting out of the market and holding 100% in cash . I am not so sure if this is a wise move, of course, if one could avoid the "40 days with biggest losses" from the market, he/she could really achieve an "extraordinary" result, but in reality, can we rea...

I really enjoy the beauty of the sky every morning or evening whenever I look up the sky from my living room….. these photos were taken from my house in the morning or evening. Like skies, Mr Market’s mood swings days and nights or minutes by minutes …. Below quoted from Warren Buffett’s Letter to  Berkshire Hathaway   Shareholders in 1987.