I made a call to sell off the tech sector, including Apple, Alibaba last week. The valuations were extremely high and I rode on a 40% upside over 1 year.
I also noticed that European Equity ETF is beginning to sell off.
I doubt if this is the start of a huge bear market like those seen in 1998 (EM Markets), 2001 (9-11), 2003 (SARS, Enron), 2008 (GFC). I doubt that even a medium rated correction like those seen in 2011 (European Crisis), 2015 (EM sell down) will occur. Perhaps a 10 - 20% correction but no more.
Perhaps the medium or big one will come in 2018. I don't know.
The property market seems to have stirred to live in Singapore. I believe it is a flash in a pan.
1. supply is still abundant while population growth is slowing down.
2. Singapore's GDP growth is still less than 3%. Jobs growth is strongly correlated with demand for housing.
3. rents are still falling. If prices rise, it mean that yields are compressing. Not good in an environment of rising interest rates.
It is however, a good time for investors of en bloc properties, which are usually over 30 - 40 years. Developers from abroad are hungry for land bank. Chinese developers do not care if profit margins are less than 10%. They just wish to "roll their money" in Singapore.
I am about to acquire a freehold house in Birmingham for GBP130k, 8% nett yield and 15% return on equity. It is a great piece of investment as far as yields are concerned.
I also noticed that European Equity ETF is beginning to sell off.
I doubt if this is the start of a huge bear market like those seen in 1998 (EM Markets), 2001 (9-11), 2003 (SARS, Enron), 2008 (GFC). I doubt that even a medium rated correction like those seen in 2011 (European Crisis), 2015 (EM sell down) will occur. Perhaps a 10 - 20% correction but no more.
Perhaps the medium or big one will come in 2018. I don't know.
The property market seems to have stirred to live in Singapore. I believe it is a flash in a pan.
1. supply is still abundant while population growth is slowing down.
2. Singapore's GDP growth is still less than 3%. Jobs growth is strongly correlated with demand for housing.
3. rents are still falling. If prices rise, it mean that yields are compressing. Not good in an environment of rising interest rates.
It is however, a good time for investors of en bloc properties, which are usually over 30 - 40 years. Developers from abroad are hungry for land bank. Chinese developers do not care if profit margins are less than 10%. They just wish to "roll their money" in Singapore.
I am about to acquire a freehold house in Birmingham for GBP130k, 8% nett yield and 15% return on equity. It is a great piece of investment as far as yields are concerned.
