STE's Stocks Investing Journey

 Hi, everyone ! It’s me again, back with another deep dive into the fascinating world of stock markets and investing. Today, we’re exploring a concept that’s like the heartbeat of the stock market : regression to the mean . Think of it as the market’s way of finding balance, much like the ebb and flow of tides along seashores or the predictable shift of seasons. Markets go up, they go down, they swing wildly at times, but over the long haul, they tend to settle back to a baseline (or so-called regression to the mean) . Let’s unpack this idea, explore its historical roots, and determine how we can apply it to make more informed investment decisions. What Is Mean Reversion, and How Do Investors Use It?   <source:Investopedia.com>   How Applying Regression To The Mean Can Improve Investment Performance   <source:Forbes.com> The Cyclical Nature of Markets   Markets, like so many things in life, move in cycles. Picture the economy, credit flows, o...

Most of the world stock markets ended lower in the 3rd Quarter of 2022, as concern about rising interest rate ( FED increased the FFR by another 0.75% in Sep and indicated that they going to increase the rate by another 1.25% by the end of 2022), persistently and stubbornly high inflation , increasing geopolitical tensions (blew up of Nord Stream 1&2 pipelines , the annexation of 4 Ukraine territories ), the energy crisis in Europe, the collapse of UK Bond market after the government announced the new tax cut and of course the continuous of struggling economy situations in China ( low PMI, struggling property market, no improvement of economic activities with strict Zero Covid policy ). Commodities prices lost momentum in view of a possible ( or already) world economic recession. After pumping trillions of dollars of liquidity into the market in the past decades, the world central bank is facing all the above, most unprecedented challenges in recent world economic history, guess...

                                                         < Image Credit : Azquotes.com > STI up by 9.84% in 2021, basically if SG banks and REITs are performing well, STI should be OK as more than 60% of STI weightage are bank stocks and REITs.  For me, STI is more for dividend and passive income, slow and steady but good for retirees like me. :D SG REITs are almost flat in 2021 but with dividends, the total returns should be around +5.8%. Of course for individual REIT, performance varies from sector to sector, data centre and logistics perform better than office and retail and the worst is still hospitality.  HSI is one of the worst index performances in the world. It had been dragged down by the continuous crackdown by the government on property/education and tech anti-monopo...