STE's Stocks Investing Journey

i mage credit to investinghaven.com Buffett once said: “When I see memos from Howard Marks in my mail, they’re the first thing I open and read. I always learn something.” What can we learn from the latest memo from him ( you may read the full memo here )? In his latest memo, he touched on the topic of “ market volatility” and “Pro-Risk behaviour” . According to him, although most of the valuations seem to point to high and overvalue scenario in major stock markets the “unacceptability of low returns on cash & Treasuries / Bonds couple with the attitude of “ FOMO “, continue to push the market indexes to higher high. Every week, we could hear or see the news of the market reaching a new record high, again and again.

Recently, after reducing my holding in Capital Commercial REIT (here ) and Accordia Golf TR, other than deploying my fund to short term bonds  and building up my war chest, I am also thinking of adding new counters which would generate some passive income to replace the loss of income from these two counters which used to be the main holding in my portfolio. While doing the due diligent for one of the target stock, I came across this paragraph in one of the analyst reports…

image credit to asymmetryobservation.com This is one of the best articles on the topic of “ Reversion to the Mean “ … just for reading. The Realities of Mean Reversion by Jack Forehand,  Validea's Guru Investor Blog Quote “Mean reversion is one of the most powerful forces in investing. Whether it be the performance of asset classes, the fundamentals of companies, or economic data, almost everything in investing will revert to long-term averages over time. ” Unquote Full article ( here )

image credit to sbr.com.sg What is 'Share Turnover' From Investopedia.com Share turnover is a measure of stock  liquidity  calculated by dividing the total number of shares traded over a period by the average number of shares outstanding for the period. The higher the share turnover, the more liquid the share of the company.

image credit to asiaone.com Ding…Ding…Ding, CPF Board has  just credited the interest into our CPF account, you may log in and check your latest balance and amount of interest you got from “ Ah Gong “... 😊

                          Time flies, we are counting the last two days of 2017 to welcome 2018 and again is time to take stock of the year gone by and make plans for the coming year. We try to justify (or made excuses ) of what we didn’t achieve in 2017 and set the new resolutions for 2018. 2017 should be a good year for most of the investors as STI gained 18% ( exclude dividend ) and closed at 3402.92 . A rising tide lifts all boats, if you have counters like banks, property or electronic manufacturing, your performance should be better than STI as these are the counters rebounded strongly in 2017.

After warning issued from China, India, Malaysia, Thailand Central bankers, many monetary regulatory seems to follow suit and came forward to warn the RISK of investing in Bit-Coin....as it may turn out to become a " systematic risk " which really can create " chaos and havoc " to the financial market/system if it continues to grow at " exponential " rate before it collapses. This could be seen from the total market cap for Bit-coin which is around USD290 BIL ( at the supply of close to 16 mils ) , can you imagine if the total supply achieves the full amount of 21 MIL, and if the price hit USD50,000 , what will be the total market cap of Bit-coin?