A casual stroll in Toa Payoh HDB Hub and I can confirm that property is the next craze now. I heard people chatting about property. I saw people looking at developer’s latest project brochure.
A HDB flat was nearly transacted at a million dollar. It was a maisonette in Bishan. Things may be getting to unsustainable level.
Tuesday, September 11, 2012
Wednesday, September 5, 2012
Apple store update
I walked past the Apple store today and noticed during lunchtime it was almost empty of customers. Salespersons are busy chatting on the phone or with colleagues. As this was the school holiday period, I expected a small crowd of students inside the store. It was a different story 2 years ago, when the store was filled with students at about this time.
On the stock screen, I noted that Apple PE is 15 and the share price is at a 52 week high of US$674. About 5 years ago, this was a stock I wanted to buy at US$80. I did not buy because the PE ratio was high at 30. I did not expect it to climb all the way to $600. At this price its market cap is US$632 Billion. Unless, it has a few new great product, Apple may reached its peak now and will dive soon.
On the stock screen, I noted that Apple PE is 15 and the share price is at a 52 week high of US$674. About 5 years ago, this was a stock I wanted to buy at US$80. I did not buy because the PE ratio was high at 30. I did not expect it to climb all the way to $600. At this price its market cap is US$632 Billion. Unless, it has a few new great product, Apple may reached its peak now and will dive soon.
Could the 4 bubbles burst?
I noted that there is a bubble everywhere the retail investors turn to on 26th October 2011. The 4 bubbles are the property market, stock market, bond market and commodity market.
1) Bond market- USA interest rate is at a 30-year low and bond prices are high. A month ago, fund managers in Singapore are promoting bond funds to retail investors because of the high yield versus bank low interest rates.
2) Property market- Parc Centros at Punggol was sold between $800 - $1,000 PSF based on this report in straits times - http://www.valuebuddies.com/thread-2359-post-32237.html#pid32237 . This is considered high price for a condominium in Punggol, an area far from town.
3) Stock market- STI index is at a high 3,000 points with low volume trading compared to the booming years 2006-2007.
4) Commodity market – Australia Resources Minister Martin Ferguson last month declared that the resources boom is over. Major resource company like BHP Billiton shelved its multi-billion-dollar expansion of the copper and uranium mine.
Can the 4 bubbles be bursting soon? Time will tell us soon. If so, prepare for the ultimate roller coaster ride by fastening your seat belt.
1) Bond market- USA interest rate is at a 30-year low and bond prices are high. A month ago, fund managers in Singapore are promoting bond funds to retail investors because of the high yield versus bank low interest rates.
2) Property market- Parc Centros at Punggol was sold between $800 - $1,000 PSF based on this report in straits times - http://www.valuebuddies.com/thread-2359-post-32237.html#pid32237 . This is considered high price for a condominium in Punggol, an area far from town.
3) Stock market- STI index is at a high 3,000 points with low volume trading compared to the booming years 2006-2007.
4) Commodity market – Australia Resources Minister Martin Ferguson last month declared that the resources boom is over. Major resource company like BHP Billiton shelved its multi-billion-dollar expansion of the copper and uranium mine.
Can the 4 bubbles be bursting soon? Time will tell us soon. If so, prepare for the ultimate roller coaster ride by fastening your seat belt.
Tuesday, September 4, 2012
Is Reits good?
A few years ago, reits were the “in” thing to invest for yield. Some of the reits were giving 10% in annual dividend payout. They also promised to pay 90% of the profit generated yearly. Everything is fine when interest rate is at a 30 year low, i.e. 1%.
What will happen if interest rate spike suddenly? As their loan repayment go up, the profit will be much less. The reduced profit will reduce their dividend payout and share price will fall. I wonder if reits holders are aware of the risk they took.
What will happen if interest rate spike suddenly? As their loan repayment go up, the profit will be much less. The reduced profit will reduce their dividend payout and share price will fall. I wonder if reits holders are aware of the risk they took.
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