STE's Stocks Investing Journey

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).

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   <source:straitstimes.com> 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 ...

image credit to sginvestors.io 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.

image credit to sohu.com.cn The  "big four"   state-owned commercial banks are the  B ank of China , the  China Construction Bank , the  Industrial and Commercial Bank of China , and the  Agricultural Bank of China , all of which are also among the  largest banks in the world  as of 2018.  The big four also, the world largest in term of total assets base on 2018  S&P Global Market Intelligence  report. FYI, DBS rank 71st with a total asset of approx. USD$388 Billion.   <Source: Wikipedia.com>

image credit to mothership.sg Millions of people have taken to the streets of Hong Kong over the past few months as protests against the controversial extradition Bill grew into violent clashes between police and protesters. What began as a targeted protest  against a controversial extradition bill in June has transformed into what feels like a battle for the future of Hong Kong. While things still unfold for the event, but it has caused billions of dollars as many businesses been disrupted, billions worth of IPOs been scraped and conference & trade fair have been postponed or cancelled.

Stock Market Volatility Is Normal Feeling like markets are more volatile than ever? Yes! Indeed. For many investors the stock market swings over the last few months have been scary and provide fresh reminders of the 2008 meltdown. In some cases, prices on the Dow could move up and down by +/- 500-800 points within a day, depending on how the market reacted to “tweets the message” from President Trump. :D When markets go on a wild ride, it’s understandable that we feel uneasy and wanted to get out of it when index down by few hundreds of points and wanted to buy more when certain stocks hit the target price set in our wish list.

i mage credit to Izquotes.com US stocks went into a free-fall on last Wednesday after the bond market stoked fresh fears of a recession ( due to inverted yield curve for US  2 years bond vs 10 years bond  ). The Dow Jones plunged 800 points -- a sharp departure for a market that had very recently been hitting record highs. Same for STI Index, as world stock markets are so intertwined with each other nowadays, although STI index is not so high in term of valuation, but when US market tumble, we can’t escape and sure have some repercussion and price reaction. Hence, STI also dropped by almost -9% in past two weeks from as high as 3381 to 3115. But former Fed Chair -Janet Yellen says "This Time Is Different !" Janet Yellen says yield curve inversion may be false recession signal this time   <from CNBC.com>