Rising Government Spending Bodes Well for Healthcare Sector

medical-563427_960_720

The SGX All Healthcare Index generated a total return of 16.2% over the past 12 months, outperforming the MSCI AC Asia Pacific Ex Japan Healthcare Index and the MSCI World Healthcare Index, which generated total returns of -0.5% and 10.4% respectively. The five best-performing stocks in the SGX All Healthcare Index excluding International Healthway Corporation are Talkmed Group (+35.8%), … [Read more...]

Do household income trends matter?

The Department of Statistics Singapore (SingStat) issued a press release and report on Key Household Income Trends 2016 recently. You can look at the summary of key trends in the press release and find the detail in the report. This is one of the most interesting data reports from SingStat that I have looked at. The other being the article on households’ spending by age group. It gives my wife and … [Read more...]

Electronic Components Stocks Shine as Exports Gain Momentum

board-453758_960_720

Singapore’s Electronics exports rose 6.1% to S$4.3 billion in January 2017 from the same period a year ago. This rising trend in Singapore’s electronics exports generally bodes well for the Electronic Components sub-segment. The Electronic Components sub-industry was among best performing sub-sectors in Singapore’s IT industry, generating average total returns of 31.7% and 66.7% in the … [Read more...]

Will Trump’s Policies Result in a Stock Market Crash?

Screen-Shot-2017-02-06-at-12.42.47-am.png

Last week, the Business Times published a great article - Markets are underestimating the risks of accelerating inflation written by Neil Behrmann - which I thought was worth a second look. In the nutshell, the author believes that there will be rapid inflation coming our way, especially with Trump's policies, and that this could be a sign of an impending market crash. I quote some parts of … [Read more...]

How Real is the Trump-driven Stock Market Bull’s Run lately?

I had been away from the stock market for several months now and then I realized that there had been a bull run lately. Dow crossing 20k and STI crossing 3k. Wow... Great according to what Trump tweeted and many reckon he is going to transform the US economy for the better. You really think so? I remember in several months ago when Trump was the candidate, he mentioned we are in a day … [Read more...]

Change is the only constant

I haven’t been reading much into individual companies. I just felt that with markets hitting new hits, the is now very little room for errors. Why go against the tide? It is ‘fun’ tabulating up the unrealised profits week after week. However, as any investor would know, unrealised gains are as they are – unrealised. Capital gains are fickle, passive income gains not as much – but if you stick … [Read more...]

Market cycle approach to working and ETF investing

I haven’t posted anything new in 2 weeks. Work picked up and the past 2 weekends were packed with family and friends meetups for lunches and dinners. Typical life of a working couple without kids. We spend most of the week at work during the day and with each other at night before scheduling all the catching up sessions over the weekend. This is on top of trying to find time during the week to … [Read more...]

Highlights of Singapore’s 10 Largest OSV Players

Pix-15_jpg

Singapore’s 32 Offshore Supply Vessels (OSV) stocks have rebounded 17.2% in the year-to-date in tandem with the recent oil price rally. OSVs are one of the key beneficiaries of a crude oil price recovery. The 10 biggest OSV stocks listed on SGX have averaged a YTD total return of 28.9%, against total returns of 0.9% for the SGX MOE Index, a benchmark for the MOE Sector. Despite the rally, … [Read more...]

Why Currency Values Drop After Political Change

Whenever there is political change, there is currency value change. Whether such political change is for the better or worse is often a matter of opinion, but almost every time currency values seem to drop after such a change. Most recently the US dollar has experienced its worst start to a year in decades, mainly due to President Trump taking residence in the White House. There are many reasons … [Read more...]

Real Estate Sector Outperformed in the Year to Date

Singapore-1

SGX’s Real Estate Developers and Operators have returned 12% YTD, outperforming the STI’s +8%. Despite the rally, the price-to-book ratio of the Sector is still trading near one standard deviation below its historical mean. Potential drivers for the Singapore property market exist on both the supply and demand front. The biggest Real Estate Developer stocks with substantial Singapore exposure … [Read more...]

WHAT INVESTORS NEED TO KNOW ABOUT SINGAPORE STOCKS NEXT?

Profile-picture.jpg

In my personal opinion, we have somewhat a Singapore stocks markets which has slowed from a good headstart in January 2017. This is mainly due to both macro and domestic factors. On the macro front, I believe investors are glued to the daily news surrounding President Trump and his actions and as more of such news emerges, investors are awaiting possible follow-ups and reactions. Most noteworthy … [Read more...]

Ernest’s market outlook (10 Feb 17)

Dear all, Happy Chinese New Year 元宵节! The animal spirits seem to have descended on our Singapore market! Our STI is one of the best performing indices with a blistering 7.6% year to date return. Our FSTS ST Small Cap Index has returned 4.6% for the same period. Have you benefitted from this rally? What’s next for our markets? S&P500 Just to recap what I have mentioned on 27 Jan … [Read more...]

Should You Invest in the Trump Presidency?

19327498146_414d3a8f8c_c.jpg

The stock market is down for the first year of a Republican President - excluding the first year he got re-election. We looked back to data from ex-President George W. Bush in 2001 to ex-US President Dwight D. Eisenhower in 1953. We show below the price of the S&P500 for the first year of a Republican President Orange reflects the price at the start of the month Blue reflects the … [Read more...]

SGX S-REIT 20 Index Registered Total Returns of 6.2% in YTD

Singapore-2

Benchmark SGX S-REIT 20 Index returned 6.2% in the YTD. Retail and Industrial REITs were the outperforming sub-segments Key metrics from Oct-Dec quarter earnings suggest weaknesses in office property, while the Industrials and Retail segments remain relatively resilient. Within the Index, Retail REITs were the best-performing sub-segment with a market capitalisation-weighted total return of … [Read more...]

The 2017 Fengshui Guide to the Stock Market

As we ease into the year of the Rooster, experts all over the year put in a piece of their opinion how the market will fare. As a part of our annual tradition, we shall turn to the world of metaphysics and Fengshui to give us an insight how 2017 will be. However, before that, let us take a look to see how Fengshui has been accurate in predicting 2016: The year of the unpredictable fire monkey … [Read more...]

Recent Moves of Singapore’s Biggest Shipyards Stocks

Pix-04

Singapore’s largest capitalised stocks that operate shipyards are Keppel Corp, Sembcorp Marine and Yangzijiang Shipbuilding. The three stocks have averaged a 5.9% YTD gain (as of 3 Feb 2017) in line with STI’s +5.8%. Despite oil price recovery, outlook for shipyards remains challenging with excess yard capacity. Resilience through cost and balance sheet management is key. Of the three … [Read more...]

Bearish start after Chinese New Year Break

2017Feb-Straits%20Times-1240x768.png

Bearish start after Chinese New Year Break First week after Chinese New Year turned out to be a week of bearishness. Straits Times Index halted it’s ascend and decided to take the bearish que. Controversies of US President Trump’s policy on immigration rocked the market during the week which triggers fears of kick starting economic instability in US. During the week, there were attempts to … [Read more...]

Jan 2017

Hello! My last post has been a while (in November). I did not manage to write a post in Dec due to the deadline of my assignments which was due over the new year. I’m glad it is over for now and I scored pretty well for one of the modules with full marks on the paper (been a while since I received full marks). While I am waiting for the results of the other module, I can concentrate on what … [Read more...]

Trump or Dump?

Ever since Donald Trump won the presidential election in November 2016, stocks have been on a roll, going higher and higher. Just about a week ago, the Dow has rallied past 20,000. Most investors believe that Trump is a boost to the economy as he pledged to spend $1 trillion on America’s aging infrastructure, cutting corporate taxes, and deregulate industries. However, it seems like the Trump … [Read more...]

Sector Returns and Institutional Fund Flow Shifts

cash-1462856_960_720

Industrials, Real Estate Developers, and Energy total returns paced overall Singapore stock market in January. In the month of January, the market capitalization weighted average total returns for the overall Singapore stock market was at +4.5%, which compares with the Straits Times Index (STI) +5.8%. By sector*, the market was paced by Industrials (+7.5%), Real Estate Developers (+7.5%) and … [Read more...]