atans1

Not damaged CD like Cat Lim: Still holding Reits and dividend stocks

In Financial competency, Reits on 23/06/2014 at 4:53 am

Yes but saying I’m still invested in reits and dividend paying stocks, I know I’m sounding like Msian Cina New Citizen Pussy Lim playing her broken record or CD  of “The PAP are doomed” (first version 199o something) and repeated at regular intervals. BTW she’s the best ad for the Malay ultras and their slogan “Apa lagi Cina mahu?”. The PAP govt gave her citizenship and a cushy job teaching teachers (She bitched or catted at fellow lecturers: once asked students if fellow lecturer, a scholar, was gay. This was in the 80s and could have ruined his career: it didn’t as students reported her actions, and she was warned to stop) and she see how she repaid the PAP: sliming PAP.

Sorry, back to reits and dividend paying shares.

Defensive leh. No-one knows why things are the way they are

The world of finance is ensnared in a triple mystery: falling bond yields, falling inflation and rising debt. The ignorance is dangerous.

(The first two implies deflation, the last implies inflation as defaltion increases the debt durden: ask the Japs)

Investors and lenders are equally at a loss. They might want to prepare for deflation. But it is always possible that they should be preparing for a new mystery: the long-delayed return of inflation.

http://blogs.reuters.com/breakingviews/2014/06/17/triple-financial-mystery-remains-unsolved/

Or as the chief investment strategist at BofA-Merrill Lynch puts it. “The ‘fire’ of zero interest rates and central bank liquidity continues to be doused by the ‘ice’ of deleveraging, regulation and deflationary technology innovation.”

Or is possible that financial markets are simply adjusting to reflect this new economic reality, rather than being complacent?

Edward Hadas, economics editor at the commentary website Breakingviews, believes that the world economy is in unchartered territory – so no one really knows what might happen.

“We are dealing with something we have never seen before: very low volatility in such uncertain economic times,” he says.

Low volatility is supposed to imply calm and confidence. But he sees no evidence that investors are not aware of the global economic risks. In the media and among the commentariat in the City, there are plenty of warnings that challenges remain.

Mr Hadas wonders if the low volatility is due to more mundane factors: the banks that provide most of the funding for traders are under capital pressure.

“The result is less activity, less volatility and a greater correspondence of markets with reality,” he said.

But he warns: “Sadly, the calm is probably temporary. Traders will re-group and become more active once they adjust to the new funding environment. And whenever economic reality does change sharply, investors can be counted on to overreact.”

http://www.bbc.com/news/business-27920419

A clue I do not have.

So I’m playing safe. I avoid bonds and buy shares and reits that I think can continue paying decent payouts, and I bank the payouts, not reinvest them. And I keep my spare cash in CPF. At this point in time, CPF pays the best risk adjusted S$ returns. Not saying much, though.

BTW experts were saying last Dec and in Jan that bonds and reits were history. They outperformed.

 

  1. Frankly I do not know when is “PAP doom”, but I am glad to report that China doom will start from August 2014,after the world cup,I will be around to answer for this,right or wrong!

  2. heard that this m’sian-born lim woman and a certain just retired long-time ex-the star (m’sia) “columnist” are very good friends ….

  3. Please write clearly. Who is this pussy lim?
    There are readers like me who doesn’t know whom are you talking about.
    If it is possible, please post links if it is available.

  4. To Annoy….

    Process of elimination lah….could it be:

    1. Lim Swee Say
    2. Lim Boon Heng
    3. Catherine Lim
    4. Lim Hng Kiang
    5. Connie Lim

    Who has been in the news of late?

  5. Ha! Ha!… out of choice of 5, 2 were female, and “connie” was there to throw people off… this is the style of GMAT questions. Dang… was hoping to catch annon… got you instead.

  6. I am asking a question, I am not here to troll.
    Now I know you are talking about Catherine lim.
    So why don’t you just said it in the first place instead of pussy?
    And seems like you assumed I am here to create trouble?
    No, I seriously do not catch the meaning in the first place.

  7. Realistic post, I think what people need to be doing is not kpkb to “give me back my $150K”, but also built up a good portfolio of finances (if you can), because realistically, $150K might not be much going on when you retire at 60 and plan to live till 85. This is why some of the old folks who are not financially savvy do need some help. But those still working now, I think they should know this.

    Lets cut Catherine Lim some slack by the way. Shes there to help. Anyone reading her posts will know that shes trying to offer her suggestions on how to make the government better, not simply tear everything down because shes not happy. Unlike those Hong Lim protestors, feedback like hers is good for the country.

    • My problem with the Cat is that she’s no different from the usual anti-PAP cyber ranter. She has been preaching since GCT took overthat the PAP has lost the people’s trust. That’s BS. It never had the trust of 25-30% of S’poreans. What it has lost is the “middle ground”, people like me. And this loss is not absolute or forever. I dislike the sweeping statements she makes, ’cause it will delude the PAP haters to think they can win by continuing denouncing the PAP mindlessly. For those that want plurality like me that isn’t going to help as the PAP adjusts its policies like on welfare, immigration and public tpt and housing.

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