Thursday, December 14, 2023

Resurgence of S-Reits!


Greeted by green bamboo shoots upon login to my POEMS trading account today!

The S-Reits in my SGX Income portfolio surged strongly after the latest Federal Open Market Committee Meeting.

My paper net worth grew by more than $10k in 1 day of resurgence.

The Federal Reserve has decided to maintain interest rates and is willing to cut interest rates in 2024 even if the US economy does not go into recession.

This strong signal indicates the pivoting from current peak of high interest rates and resulted in a market expectation of interest rate cuts of at least 1.5% in 2024.

Whatever goes up will come down.

Whatever comes down will go up.

Reits' prices have been battered and suppressed since the onset of interest rate hikes 2 years ago.

Their time for comeback has arrived.

I believe it is important to allocate our financial assets well such that we own a balanced portfolio of assets which thrive under all conditions. 

Moving forward, I expect a retracement of bank share prices which may remain weak and volatile in the coming months because a drop in interest rates will erode into their net interest incomes. I will monitor and on standby to add local bank shares while watching the S-Reits continue to soar.

Thank you for reading. Stay focused and remain steadfast as always!

With love & peace,

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