Some of you may miss the last Ein55 Graduate Gathering (14/7/2019), here are the key summary for your reference (educational purpose, please make your own decision):
1) Short-term Bond Strategy
Besides preserving cash in bank, another option for investor is holding short term bond while waiting for global financial crisis. Analyze company with bond <1-2 years maturity, ensure it is a giant, waiting for discount in unit bond price (<$100). G8 Education (GEM.AX) was quoted as an example (bond matured in May 2019), having both coupon interest (5.5%) and capital gains in bond price (8% when unit bond price was $92). Applying stock analysis in bond selection, focusing on business fundamental.
Here is bond screener (we will study more case studies of short term bonds in coming Ein55 coaching): https://www.ifastgm.com.sg/igm/bonds/bond-selector
2) There are 4 qualities of crisis stocks (long term low optimism), better ones are aligned with high level of crisis (eg. Level 3 country or Level 4 global) with better business fundamental. First Reit was quoted as case study, Level 1 (individual stock) is strong but related party (major customer & sponsor), Lippo Karawaci is weaker in business (negative operating cashflow for many years), therefore First Reit is an average quality of crisis stock.
The precondition for crisis stock investing is protection by its business (value), only then it worth to buy low, then either sell high or hold long term, depending on stock characteristic and investor personality.
3) Singapore REITs stocks / sector are suitable for short term momentum trading, partly due to defensive investors with support of possible increase in gearing to 55% (currently at 45%) for stronger REITs. Many REITs (eg. Mapletree & Ascendas related stocks) have strong price momentum but trading strategy has to be applied (combined with optimism for entry/exit).
4) With the latest giant detector, there are 1480 global “standard” giant stocks with 6 main strategies for trading & investing. There are 110 global dividend giant stocks but only 9 are from Singapore. One Singapore dividend giant stock (Challenger Technologies) was nearly delisted, investor has chance to accumulate this valuable stock for passive income investing during the next global financial crisis.
5) Global Stock Market Outlook
Enjoy summer before winter is coming. Current higher optimism stock market is more suitable for shorter term trading. Longer term investor may wait for potential opportunity (1-2 years after inverted bond yield) to buy low. Understand own personality (eg. trading or investing, growth or dividend investing, reward vs risk, etc), then align the right strategy (buy low sell high / buy low hold long term / buy high sell higher, etc).
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For general public who is interested to learn 5 strategies of LOFTP (Levels, Optimism, Fundamental, Technical, Personal Analysis) stock investing , you may sign up for the next free 4hr course by Dr Tee.
