STE's Stocks Investing Journey

Howard Marks, founder and co-chairman of $122 asset manager Oaktree Capital Management and author of many best selling books ( including the recent one “ Mastering The Market Cycle ”) had just published his latest memo. Latest memo from Howard Marks: Mysterious   <link> “And that brings us to the subject of negative interest rates.  I find them no less mysterious.   The fact that we know what they are  – as we do with inflation and deflation –  doesn’t alter the fact that we don’t know for sure why negative rates are prevalent today, how long they’ll continue in force, what might cause them to turn positive, what their consequences are, or whether they’ll reach the U.S.” In this latest memo titled “Mysterious ” , he starts with a discussion of many possible causes of inflation and the implication of negative rate to our investment and financial institutions, he finds negative interest rates just as baffling and “mysterious”. ...

image credit to stewcap.com 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: Investopedia.com> Why do investors buy negative yield bonds? <source:ft.com> image credit to Bloomberg finance.com 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).