A few weeks ago, I gave a market outlook at SGX at the invitation of the https://onlinetradersclub.org/.
I think 2020 should be a good year for the stock market. The CoronaVirus may provide me an opportunity to enter.
I have been wanting to invest in UK properties for some time, as I have the view that Brexit is good for UK. I was looking for Reits listed in UK, but did not find any that I like. This latest IPO will give me the opportunity to put my thoughts into action, and without hassle of managing lawyers, real estate agents, bankers, and renovation contractors.
It was reported recently that Lippo Malls Tr (D5IU.SI) sold 2 shopping malls (https://www.businesstimes.com.sg/companies-markets/lippo-malls-indonesia-retail-trust-to-divest-pejaten-village-and-binjai-supermall).
I bought some Ascendas Reit (A17U.SI) at the TERP (theoretical ex-rights price) of 3.10 today.
I always compare my leveraged returns against the best practices in the market, such as professional REIT managers borrow banks to make money for their Real Estate Investment Trusts (REIT). This allows me to evaluate the risks that I am taking vs the potential returns.
Leverage is defined as the process of borrowing money to make an investment, with the expectation that the profits made from the investment will be greater than the interest on the debt.
In my investments in bonds and reits, I like to use leverage. On the other hand, some of my friends stay clear of leverage. They try to pay off their loans as soon as possible.
So is leverage good or bad?
OUE Com Reit (TS0U.SI) has fallen 12.5% the past month, is it time to buy?
Almost every other day, the news read something like this :
“Asian stocks decline as trade concerns resurface”. Its getting a bit repetitive.
I was asked for my views of the current market, here is something simple.