Life is full of uncertainties. Because the only constant is change, life can then be more interesting. Everyday, we must mentally prepare ourself to fight a good fight and live a good life - with love and support of those who are around us and who care for us. If I can make one more friend a day for life, then I will regard my life as successful and meaningful.
I am learning every day. For that reason, I find life is very interesting. From young, I humble myself. I stay with God and everything works well for me through His Grace. Even if I have a little more now, I always remind myself never to be proud - for "pride goes before a fall".
Today i learnt about QE1 & 2: concerns on recovery & rising oil prices have made situation complicated. QE2 with its US$600b bond purchase (that depress yield on bond & tresuries) to simulate investment & consumption is only modestly successful. US dollar remains weak.
Come June, there will be no QE3 & investors will go defensive. But bond yield will not spike. FED can either initiate a bond selling plan or it can hold them to maturity. But FED is likely to keep the loose monetary policy. The FED still sitting on US21b worth of securities from crisis. Defensive plays are utilities, telecom and even consumer staples. Inflation temporary and will ease, with similar declines in commodity prices & equities, and strengthening of US dollar.
Why S-REITs ? * Debt financing at low interest rate result in dpu growth of 1.0 to 5.5% * Inflation impact dpu by less than 1% average * Low fund costs spur tield-accretive acquisitions spurring dpu growth * Strengthening S$ makes reits a value proposition for US & Overseas investors * Strong S-Reits fundamentals - good occupancies & rentals * Insulated from policy changes & maturing mkt - combined S$33b mkt cap, making up 5.2% total mkt * Diversified with 26% assets overseas * Higher yiels spread at 324bps, 26bps higher than historical & 244 bps above mkt peak * CLSA picks are Suntec, MLT & K-Reit
UOB KayHian expects warehouse & biz park rentals to rise 5-10% in 2011 due to strong demand from electronic manufacturing driven by the boom in global demand for gadgets such as smartphones, tablets & flat screen TVs.
Life is full of uncertainties. Because the only constant is change, life can then be more interesting. Everyday, we must mentally prepare ourself to fight a good fight and live a good life - with love and support of those who are around us and who care for us. If I can make one more friend a day for life, then I will regard my life as successful and meaningful.
ReplyDeleteI am learning every day. For that reason, I find life is very interesting. From young, I humble myself. I stay with God and everything works well for me through His Grace. Even if I have a little more now, I always remind myself never to be proud - for "pride goes before a fall".
ReplyDeleteToday i learnt about QE1 & 2: concerns on recovery & rising oil prices have made situation complicated. QE2 with its US$600b bond purchase (that depress yield on bond & tresuries) to simulate investment & consumption is only modestly successful. US dollar remains weak.
ReplyDeleteCome June, there will be no QE3 & investors will go defensive. But bond yield will not spike. FED can either initiate a bond selling plan or it can hold them to maturity. But FED is likely to keep the loose monetary policy. The FED still sitting on US21b worth of securities from crisis. Defensive plays are utilities, telecom and even consumer staples. Inflation temporary and will ease, with similar declines in commodity prices & equities, and strengthening of US dollar.
ReplyDeleteWhy S-REITs ?
ReplyDelete* Debt financing at low interest rate result in dpu growth of 1.0 to 5.5%
* Inflation impact dpu by less than 1% average
* Low fund costs spur tield-accretive acquisitions spurring dpu growth
* Strengthening S$ makes reits a value proposition for US & Overseas investors
* Strong S-Reits fundamentals - good occupancies & rentals
* Insulated from policy changes & maturing mkt - combined S$33b mkt cap, making up 5.2% total mkt
* Diversified with 26% assets overseas
* Higher yiels spread at 324bps, 26bps higher than historical & 244 bps above mkt peak
* CLSA picks are Suntec, MLT & K-Reit
UOB KayHian expects warehouse & biz park rentals to rise 5-10% in 2011 due to strong demand from electronic manufacturing driven by the boom in global demand for gadgets such as smartphones, tablets & flat screen TVs.
ReplyDeleteAT Kearney, The Chincago Council's measure of a global city: business activity, information exchange, culutral experience & political engagement
ReplyDelete