Global inflations have started to decline from peak of decades high, especially for US (from 9.1% to 7.1% currently. aiming below 5% in near future). Historically, proven lower inflation would help to limit the interest rate hike which would be a relief (especially for technology stocks) for global investors. A smart investor may not wait until news to confirm such trend, able to take action earlier (with assistance of reversal signals to bull, not all stocks are suitable to consider now) than majority who may be still worrying about recession.
US stock market is not as weak as shown by S&P 500 stock index. In fact, most of the sectors are recovering well, except for technology and consumer discretionary. However, since most of the large cap stocks (top 10 of S&P 500) are technology stocks, therefore the index has been weak, mainly due to bearish Nasdaq stock market. However, there are few thousands of other stocks in US which are non-technology which may be considered earlier by investors or traders. Eventually, even technology stocks in US would follow HK/China stocks to recover strongly, especially when there is more consistent drop in inflations over the next few months.
Inflation rate is a lagging indicator based on CPI (Consumer Price Index) over the past 1 year. In fact, monthly and quarterly CPI has been declining significantly but yearly CPI difference (which is the standard inflation) only starts to show reversal in the past few months. When inflation starts to “confirm” dropping below an acceptable level by the Fed, it may be too late for most investors to enjoy the free lunch. Despite the hidden fact of declining inflations, the Fed could not be soft in its tone as lower CPI would help to create bigger safety margin to avoid future reversal of inflations to a new high, especially the US job market is extremely strong (3.5% unemployment rate, the lowest level over the past 50 years). When global stock investors start to make money again in investment, they may continue to spend more money (higher inflation), therefore it is wise to scare them to be more prudent in spending next time.
With recent relaxation of COVID policy in China (full reopening of border), Hong Kong / China stock markets have been soaring (Hong Kong Hang Seng Index has jumped over 30% in the past few months while some individual giant Hong Kong stocks have started to recover over 50% in share price as if there is no tomorrow). As mentioned over the past 1 year, even a smart investor may not know the true market bottom, simple averaging down strategy below low optimism may be applied on HSI index while collecting 3% yearly dividend (comparable with Singapore Savings Bonds which has no capital gains, a popular choice for many retail investors, not knowing it is a loss in long term by investing below high inflation of 5% in Singapore).
One day, a true global financial crisis would still come (even if 2022 technology bubble and Hong Kong/China stock crisis due to zero COVID policy are only market corrections). However, an investor could not worry everyday that “sky would fall down”, as if worrying of suffocation, therefore refuse to eat (因噎废食) which is not reasonable. A better option is to be flexible, integrating short term trend-following trading with long term growth / dividend investing, taking calculated risks while others are still fearful.
It is timely now to review own stock portfolio, making decisions (Buy / Hold / Sell / Wait / Shorting) ahead of majority.
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There are over 2000 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.
Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.
Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:
Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Frasers Logistics & Commercial Trust (SGX: BUOU), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).
Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Integrated Commercial Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.
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View quick preview video below, Dr Tee will introduce 10 key stock investment strategies (股票投资十招) to be learned in 4hr free stock webinar:
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