Tuesday, October 01, 2024

3Q 2024 Investment Strategy Update

The Feds has finally made their move, deciding on a 0.50% interest rate cut, making borrowing cheaper, and at the same time, hoping to steer the USA economy into a soft landing and not go into recession. With that, this signals the start of the interest lowering cycle. Cheers to the REITs and those companies on high debt. Banks, on the other hand, ever dependent on their Net Interest Margin, is forecast to start reporting lower profits. Now... this is the time to buy your last train ticket into REITs before they start flying off, benefiting from lower interest cost and reporting higher dividend rate. Next Federal meeting is set in Nov, where markets are envisioning a 0.25% cut and a final 0.25% cut in December.

DJI ended at 42330, a increase of 3212 points (+8.21%) compared to 2Q 2024. For Singapore, STI ended at 3585, an increase of 253 points (+7.59%) compared to last quarter, tracking gains on Wall Street. Last 3 months saw the Singapore 3 banks surging from stellar results and not forgetting Singtel, continue its 23% climb after releasing Singtel 28, their next growth strategy and revised dividend policy back in May 2024. Investors seem to really like what they saw, with potential increase in dividend rates.

Sadly to say, as the company I am working at is not doing well, they have decided not to issue any mid year bonus, thus, I do not have spare cash to load into any counter this quarter. Hopefully, with the lowering of interest rate, all the US Office REITs in Singapore can start resuming their dividend soon.

That is all for now. See you all in Q4 2024 update and thank you for reading thus far.

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