atans1

Bad timing! ST article on Reits/ Will mkts continue rising?

In Financial competency, Humour, Property, Reits on 28/05/2013 at 5:29 am

On 22 May ST screamed “Reits look like good bets to yield-hungry investors”

The opening para read “SINGAPORE real estate investment trusts (Reits) are among the hottest assets in town to own”.

http://www.cpf.gov.sg/imsavvy/infohub_article.asp?readid=332593593-17481-7717667817

On 23 May, Japan’s stock market fell by about 7%. “It was no different in Singapore, where the benchmark Straits Times Index sank 61.2 points or 1.8 per cent to 3,393.17, its worst one-day plunge in percentage terms since its 2.2 per cent reverse on May 7 last year” (“Markets tumble amid US, China fears”: ST headline. Didn’t have the balls to tell us, reits here were off about 5%*. They have since recovered slightly.

Fee-fi-fo-fum; I smell the blood of reporters and analysts. Be they alive or be they dead, I’ll grind their bones to make my bread.

For what’s it’s worth, I repeat my take first expressed here https://atans1.wordpress.com/2013/05/21/s-reits-why-stay-away/. But I’m not selling, yet, juz collecting the distributions, and watching to sell.

Update after first publishing: Juz read in FT that while the Topix index is down 10%, reits there down 1%. Seems investors want to own real assets, given that Japan wants to raise inflation.

Update, Update: However, there are three good reasons why stock markets, a few blips aside, will continue to grow for some time: central banks are scared; there is lots of money waiting to be invested; and returns on all other assets are low … Strapped to these three rockets, the market can still soar. Of course, Spain could yet go bust or China grind to a halt. There could be a natural disaster, an act of terrorism or war. History tells us a bust is waiting down the track, but while the world economy recovers and governments and central banks maintain their pledge to keep printing money, we should expect prices to rise.
Phillip Inman from Guardian

 

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  1. Only 3 scenarios will affect market sentiments:

    A) Natural disasters of great magnitude.. the last one was during Noah’s time

    B) Financial events of great consequence.. the last one was in 2007 during Greenspan’s time

    C) Political events such as 11 September 2001 ( 911)

    Yet,each time the markets did not die. There will always be a willing buyer, willing seller.. as long as these 2 people exists, its a market. What gains does a seller have and what gains does a buyer get is a matter of perspective.

    The Great Depression of 1930 did not affect every country
    SARS did not affect every country

    There is endless supply of money now… there is endless credit too. The music will not be stopped as the DJ knows that stopping means all the happy dancers will turn into very unhappy rioters… even if he plays slower music tracks.

    Despite $100K COE, despite F&N sale, despite SIA low yields, despite NIKKEI drops 500 points… despite less patriotic parliamentarians.. despite Hong Lim gatherings.. despite CPF not enough for retirement… the money floats everywhere except my pocket.

    So, we wait for either man made disasters ( 2 types ) or natural.

    Secretly, we hope it happens, for its the only event that will create opportunities for capitalist people like us. ( just hope we are safe above the turbulence… with our single malt and our laptops or smart phones ).

  2. SPH is spinning off their retail assets into a REIT.
    SPH says that REITs are a good bet
    Article needs a disclaimer that it is an advertisement =)

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