A quarter of sideway movement, while investors at large waiting for the next economy cycle signal. This basically sums up the feeling for the last 3 months. Generally, economy are slowing down, inflation are slowing down and federal rate hikes are taking a pause, without pushing the market into a recession (Or they aim for a soft landing). Companies are cutting expenses and investment to preserve profit, hiring are slowing down in most of the markets, with all signs preparing for the next economy downturn. War between Ukraine and Russia are not looking to end anytime soon. China property market is a timebomb waiting to unleash the next major jolt (bomb) to the world, with major Chinese developers going into defaults. A silver lining though is that China government are trying to control the fallout, with aggressive slashing of local rates to pump cash into the local market. Hopefully, this cycle of slowing down can pass soon to put the world economy into a path of sustainable growth.
DJI ended at 33507, an decrease of 900 points (-2.61%) compared to 2Q 2023. For Singapore, STI ended at 3217, an increase of 12 points (+0.37%) compared to last quarter. Not much movement in the recent months as investors waits for a clearer direction.
Almost 1 year on (since 22 Nov 2022) when the Glazer announced exploring strategic directions for Manchester United, 2 bids have been submitted to the Raine Group, rumored around 5 billion pounds range. I am still waiting for Glazer's confirmation to SELL Man Utd. Understood they are looking at >6 billion pounds valuation, but realistically speaking, they are not a good owner to grow the football team (Currently 3W 4L, sitting at 10th place, definitely not a good start). The longer they drag, the lower the valuation, with poor performance on pitch. Hopefully, they can make up their mind soon to exit the business.
For this quarter, I am continuing to focus on accumulating US Reits (Except Manulife US Reit), as I believed they are too oversold in the Singapore market and their current yield is too good to be missed. Once the interest rates start to come down, US Reits should start appreciating in value.
Transaction 1: Participate in IREIT Global Rights issue in July.
Participated in the preference rights issue to “fund the acquisition of a portfolio of 17 retail properties located across France which are fully let to B&M France SAS.” Managed to get some excess rights to round up to the 100s for future trading purposes.
Transaction 2: Bought 1 batch Prime US Reit shares in July.
30+% yield is just too tempting to be missed. Load up more as I don't think it will fold like the Manulife US Reit. Manager is quite prudent in controlling debt, carefully avoiding borrowing more to maintain dividend. Temasek being a 10% shareholder also adds to its credibility.
That is all for now. See you all in Q4 2023 update and thank you for reading thus far.
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