Top 10 Singapore REITs for Passive Income and Capital Growth

Posted on November 4, 2019 Written by

There are total of 40 Singapore REITs, a popular investment option for retirement through passive income. By law, 90% of disposable income from Singapore REITs must be redistributed back to shareholders through dividends.  However, not all the Singapore REITs are profitable, an investor could lose money if choosing the wrong one, eg. pursuing the highest yield REIT.  REIT is an integrated investment between stock market and property market, knowledge of both markets are required to be successful.

In general, a good REIT should have strong fundamentals and DPU (Distribution per Unit) should grow over the time.  At the same time, we could also profit from good REITs through capital appreciation of share price and net asset value of properties.  A good REIT investor not only knows how to choose the REIT, but also masters the investment clock to buy / sell / hold the REIT.  Let’s learn together with the case study below on Capitaland Mall Trust.

Singapore REITs

Capitalmall Trust (SGX: C38U) is one of the Top 10 Singapore REITs, based on Optimism Strategy with consideration of FA (Fundamental Analysis), TA (Technical Analysis) and PA (Personal Analysis).  The DPU, dividends and operating cashflow are increasing over the years, current dividend yield is about 5%.  At the same time, an investor could have profited over 3 times in capital gains of share price ($0.75 to $2.50) from IPO till now (see chart below).

Singapore REITS Optimism Strategy - Capitalmall Trust

Ein55 Optimism of Capitamall Trust is 48% now, implying the upside is about the same as downside for its share price in long term perspective.  When Optimism is below 25% for Capitamall Trust (Level 1), Singapore REITs Index (Level 2), Straits Times Index (Level 3) and MSCI World Index (Level 4), it will be an ideal time to become REITs investor.  The dividend yield could be significantly increased if an investor could wait patiently for this REIT giant to fall down in share price during the next regional or global financial crisis.  After buying low, when the REITs have recovered again, an investor will have an option to sell high to take profit for capital gains or hold long term for passive income.

We should learn to find the Top 10 Singapore REITs with excellent business for our investment portfolio, buying at discounted price at low optimism, ahead of other potential big buyers who are also looking for these valuable assets.  Certain REITs stocks could be in crisis when the interest rates are higher and the property cooling measures last for another few more years.  Therefore, we should only consider giant REITs stocks with strong fundamentals, not just any stock with price discount, buy low and sell high or hold patiently for both capital appreciation and passive income.

The safest time to buy a stock is when everyone is afraid the sky will fall down while the business is still operating normally with consistent performance. This could be a rare opportunity to buy during a crisis, we should learn how to take this advantage to truly buy low sell high.

When Optimism Strategies are combined with Fundamental Analysis (value investing & growth investing), Technical Analysis (support / resistance / trends), and Personal Analysis (mind control of greed and fear), it is very powerful when one is able to take the right action (Buy, Hold, Sell, Wait or Short) at the right time aligning with own personality.

Fresh from Oven: Download the latest 3 FREE high-quality stock investment eBook by Dr Tee & Collin Seow on (1) “Winning Trading Strategies“, covering 2 proven methods in swing trading and position trading  & (2) “Global Market Outlook“, covering comprehensive investment topics: Stock, Property, Commodity, Forex, Bond and Political Economy & (3) “Dream Team Portfolio” with Top 10 global stocks for capital gains and passive incomes. Past readers have benefited 3 stock investment ebooks, learning Simple and Powerful strategies which deliver incredible results in stocks.

Are you worried or excited about the current global stock market, especially with the controversial US President, Donald Trump with US-China trade war?  Every crisis is an opportunity for investing. You will learn useful methods step by step from 3 valuable FREE stock investment eBooks by Dr Tee & Collin Seow which work in stock market. Take action now to surprise yourself!

3 Investment ebooks by Dr Tee & Collin Seow
Download 3 investment eBooks by Dr Tee & Collin Seow

Table of Contents (FREE Stock Investment eBook #1: Winning Trading Strategies)

  1. Swing Trading Strategy （短期波段交易策略）
  2. Position Trading Strategy （长线头寸交易策略）
  3. Bullish & Bearish Setups （牛市与熊市布局）
  4. Critical Candlestick Patterns （K线主要阴阳烛）
  5. SET Price Strategies (Stop Loss / Entry / Target) （SET 股价策略 – 止损/进场/平仓）
  6. Summary of Winning Trading Strategies （致胜投资策略总结）

Table of Contents (FREE Stock Investment eBook #2: Global Stock Market Outlook)

  1. Mass Market Sentiment Survey （大众市场情绪调查）
  2. Review of Global Stock Markets （环球股市回顾）
  3. US Market Outlook （美国市场展望）
  4. Regional Market Outlook (Europe, China, Hong Kong) （区域市场展望）
  5. Singapore Market Outlook (Stock & Property) （新加坡市场展望）
  6. Conclusions and Recommendations （总结及建议）

Table of Contents (FREE Stock Investment eBook #3: Top 10 Global Stocks – Dream Team Portfolio)

  1. Personalized Stock Investment Portfolio （个人化股票投资组合）
  2. Ein55 Global Top 10 Stocks （10大全球高潜能股票）
  3. Summary of Actions （投资方向总结）
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The unique Optimism Strategy developed by Dr Tee provides a special advantage to know which investment (stock, forex, property, commodity, bond, etc.) to buy safely, when to buy, when to sell, including the option of long term holding.  So far over 30,000 attendees have benefited from Dr Tee high-quality free stock investment course to the public. Take action now to invest in your financial knowledge, starting your journey

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  • Market Outlook (stocks, properties, bonds, forex, commodities, macroeconomy, etc)
    市场展望 (股票、房地产、债券、外汇、商品、宏观经济等)
  • Optimism/ Fundamental / Technical / Personal Analyses
    （乐观指数 / 基本分析 / 技术分析 / 个人分析）
  • Investment risks & opportunities （投资风险及机遇）
  • Dr Tee graduates events and activities updates （Dr Tee学员活动最新消息）
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Filed Under: Market Cycle Investing, Property Market, Stock Market Tagged: ,

5 Global “Ah Seng” Giant Stocks

Posted on November 4, 2019 Written by

There is a question asked about 5 “Ah Seng” global dividend giant stocks shared by me during the charity course. Interested Ein55 graduates, you may login to Ein55 Graduate Network, I have given details of these 5 Ah Seng giant stocks there, could be positioned either as mid-fielder or defender in investment portfolio. For these 5 Ah Seng giant stocks, 2 are Singapore Ah Seng stocks, 2 are Malaysia Ah Seng stocks, 1 is Hong Kong Ah Seng stock. Perhaps you could guess a few of them.

For Singapore Property Sector (mostly undervalue stocks, some were covered in Discounted NAV stock charity course before), besides Ah Seng (Chip Eng Seng, SGX: C29), there are also other traditional stocks with common Chinese names:

Ah Lian + Ah Beng = Lian Beng (SGX: L03)

Ah Huat = Low Keng Huat (SGX: F1E)

Ah Lian = Sim Lian (delisted a few years ago)

Ah Lian + Ah Seng = Hock Lian Seng (SGX: J2T)

The names of Singapore property stocks show that founders of companies are quite traditional (could be more reliable and trustworthy), operating the business in an honest way.

Name of stock is not critical. More importantly, it must be a giant stock with strong business fundamental. Regardless Ah Beng or Ah Seng, the one could make money in business consistently is a good giant stock to consider for investment.

Learn from Dr Tee free 4hr stock investment course on global giant stocks to invest (What to Buy, When to Buy / Sell). Register Here: www.ein55.com

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)
Filed Under: Stock Market Tagged:

$176,000 Donations over 9 Charity Courses in 5 Years for Tzu Chi (慈济) with Summary of High Dividend Stocks

Posted on November 3, 2019 Written by

Dr Tee, Ein55 Mentors & Graduates have together organised 9 charity investment courses (REITs in Nov 2015, May 2017 and May 2019, High Dividend Stocks in Mar 2016, Oct 2017 and Nov 2019, Capital Growth Stocks in Apr 2018 and Discounted NAV Stocks in Sep 2016 and Nov 2018) in the past 5 years, donating net income of around $176,000 to Tzu Chi 慈济 (Singapore).

We hope to inspire more Ein55 Graduates to reach out the society, helping others who are in need. More importantly, they have also learned the secrets of making money through investment. When more Ein55 Graduates are successful financially, they could also contribute back to the society to help more people in future.

Here are key learning points from the recent Charity Course on High Dividend Stocks:
1) Invest for dividend income is one of the important criteria that stock investor must not ignore because historical data shown that
1.1) S&P 500 (1932 to 2014) – dividend contribute 45% of portfolio return
1.2) STI 30 (2003 to 2013) – dividend contribute 49% of portfolio return

2) Financial Analysts Journal indicates that a portfolio of 10 stocks will diversify >75% of total investment risk but out of it 19.2% is systematic risk which is un-diversifiable such as change in global economy situation, interest rate change, natural disaster etc, with 30 stocks will diversify >95% of unsystematic risk (operational related risks), further add on number of stocks would not reduce significant risk in the portfolio but increase difficulty to monitor. For individual investor, suggested number of stock in a portfolio is 10 to 30 stocks.

3) 3 main criteria for a High Dividend Yield (DY) Stock:
3.1) DY > 6% for Singapore stock or 7% for oversea stock base on entry price,
DY>/= Risk Free rate + LT inflation rate + local/oversea currency pair CAGR
SG : CPF SA 4% + 10yr inflation 2% = 6%
HK : 10yr TB 2.0% + 10yr inflation 3.0% + 10yr CAGR SGD/HKD 2% = 7%
US : 10yr TB 2.5% + 10yr inflation 2.5% + 10yr CAGR SGD/USD 2% = 7%

3.2) Continue 5-year non-stop payout dividend and no reduction in DPS (Dividend Per Share), best is growing year after year. For overseas stock, looking for dividend stocks with 10 years non-stop payout.

3.3) Strong fundamental stocks (eg. ROE > 5% and other criteria) to avoid value trap of high dividend yield with weaker fundamental or lower share price.

4) Telcos, Utilities, Banks, Consumer Staples and Consumer Monopoly are considered defensive sectors that can make money in any economic environment, therefore ideal for dividend stock investing. People usually will not shut off their power, close bank accounts, give up their mobile line or Internet, stop buying food & drink or stop buying toothpaste when times get tough. Furthermore, some of these companies have grown to big scale that dominate the market, they are either natural monopoly or near monopoly, duopolistic or oligopoly in the industry.

We should drive the money (helping others when you are successful), not driven by the money (making money only for own gain).

Investors should learn the unique LOFTP Strategies (Level 1-4, Optimism, Fundamental, Technical, Personal Analysis) developed by Dr Tee to choose strong global stocks, buying them at low price, then holding for consistent dividend payout or selling for high capital gains. High-quality free stock investment courses are provided by Dr Tee to the public.

Register Here to learn High Dividend Stocks & other 10 Strategies for Free: www.ein55.com

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)

Filed Under: Fundamental Analysis, Stock Market Tagged:

Selection Criteria of 5 Different Investment Markets (Stocks, Properties, Bonds, Commodities, Forex / Cash)

Posted on October 24, 2019 Written by

Stocks (eg. Dow Jones Index / individual stocks), Commodities (eg. Gold / Crude Oil), Bonds (eg. US treasury / corporate bonds), Properties (house / land), Forex / Cash, are 5 different investment markets, behaving in unique way with different market cycles, capital gains and probability of success. Investors need to choose or consider the right investment market as an overall investment portfolio, aligning with own unique personality. Let’s learn the main selection criteria:

1) In all investment markets over the past 100 years, Stock Market is proven to have the most upside potential over a long term (at the expense of more uncertainties in shorter term for traders) but requiring knowledge of choosing giant stocks (strong fundamental stocks), ideally buying at low optimism of stock market cycle (eg. during global financial crisis) and hold for long term or selling high at next high optimism of stock market cycle. Many investors fail due to selection of junk stocks with weak fundamental, holding for long term, resulting in tremendous losses (when company goes bankrupt eventually, share price would drop to $0). Strong fundamental giant stocks could grow in both business and share prices over 10 times or even 100 times over decades of long term investing.

2) Property Market by default is a giant (especially for country such as Singapore or Hong Kong with limited land and growing population and rising economy over the decades), main investment tool is leveraging (loan, which is similar to CFD in stock market) for higher return, best to integrate with low optimism of property market cycle (usually 3-6 months after the low optimism of stock market cycle), hedging against inflation (about 2-3% yearly) and collect rental income with capital gains. Property stocks or REITs are hybrid of property and stock markets, having the value of property and cyclic nature of stock prices.

3) Bond Market is lower return and “safer” but some could end up as junk bonds (eg. Hyflux and some oil & gas companies in crisis), business with high debt and negative operating cashflow or losses with high bond yield is a potential value trap as it may not be sustainable in long term. In the current market, short term corporate bonds are relatively safer (<12 months maturity) if the companies have strong fundamental, could be better than cash as parking fund to wait for next investment opportunity while enjoying higher return than bank interest for cash deposit in banks or government bond (eg. Singapore Saving Bond).

4) Commodity Market usually has longer market cycle (eg. about 20 years for crude oil, 30 years for gold), may not be suitable for long term investing as it could not generate passive income as stock (dividend) or property (rental) or bond (coupon) or even cash (interest). Commodities are mainly for trading to buy low sell high, knowledge of optimism in market cycle (short term or long term) will be important.

5) Cash is King when used at the right time. When other investment market optimism is high, investors may take profits, % cash or safe fund (eg. government bond) will be relatively higher as opportunity fund. Holding cash in different currencies require understanding of Forex. Saving cash in SGD has strength for holding (moderate appreciation against most global currencies) but more importantly, cash has to be converted into other investment opportunities above at certain point for higher return.

Learn from Dr Tee in Free 4hr investment courses to learn the investment clocks of Stocks, Properties, Commodities, Bonds and Forex / Cash: What to Buy, When to Buy / Sell. Register Here:

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)
Filed Under: Bond Market, Commodity Market, Forex, Property Market, Stock Market

Retirement Fund Planning (Cash Saving vs Stocks Investment)

Posted on September 26, 2019 Written by

An investor may consider to change the usual way of cash saving for retirement fund (100% cash based). There is an alternative retirement fund plan which is stock investment based (could be 80% in 10-20 giant stocks + 20% cash as emergency fund). One has an option to do saving or fixed deposit through stock market, not simply saving in bank with lower return. 

Cash from active income (decades of working) could be converted into a portfolio of giant stocks with growing business (best during financial crisis with significant discount in share price with the same value), generating free cashflow, giving dividend (which also supports the rising price in future if one could wait patiently). A retiree could depend on a portfolio of stocks in retirement fund to pay for expenses with dividend, if needed, partial profit taking from capital gains without reducing the initial capitals.  A yearly review is required to replace weaker stock (if fundamental or economic moat is weaker) with stronger stock. Usually for retirement fund, defensive growth and dividend stocks in growing sectors with stable country economy are preferred.

Let’s compare 2 types of retirement funds:
1) Conventional Retirement Fund (100% Cash from saving)
– Growing fund by cash deposit with bank interest rate or very safe investment (eg. Singapore Saving Bonds) with 2-3% return, barely offset the long term inflation of 2-3%.
– Depleting fast, requiring huge amount of initial capital due to low return with no income after retirement.- Require huge initial capital (eg. over $1M) to maintain a reasonable quality of life after retirement with low interest which is comparable with inflation rate.

2) Retirement Fund (80% in Giant Stocks, 20% cash as urgent fund)
– After retirement, portfolio of giant stocks (10-20 for diversification to minimize unsystematic risks) could continue to generate an average return, typically capital gains + dividend yield > 10%-20% yearly, actual return depends on individual strategy and market condition. During the downturn of market (assuming not selling stocks) during crisis (could be 1-2 years), 20% cash or dividend from stocks could help as buffer if there is capital loss during this period.
– Initial capital of retirement fund may not be depleted if capital gain + dividend > expenses. If not, plan for an initial capital (which could be lower amount), including selling of partial stocks yearly (as if fixed deposit in stock market, selling stocks for cash), gradually towards max lifespan, eg, very conservative planning of 100 or 110 years old (a good problem to have if so long life).

– Planning for retirement fund depends on many factors, including lifestyle after retirement (monthly expense with consideration of inflation), safety of investment, etc.  Assuming a conservative return of capital gain + dividend yield, total of 10%/year, assuming someone who retires at 60 years old, required fund = $5000 / month (average expense with consideration of future inflation) x 12 months = $60000/year, then one would need at least $600,000 capital to generate 10% income yearly to pay for this expense (assume initial capital of retirement fund can be kept till end of life, then pass to next generation).
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In short, start retirement fund planning now, it is never too late (yourself in future will thank yourself now for taking action). Even one has already retired, still can modify the plan (eg instead of live with past cash saving, also considering saving through a portfolio of defensive growing dividend stocks), aligning with own personality and individual needs.  This way, one could lessen the burden on country or next generation.  One could enjoy happy and fruitful retirement life when financial need is taken care at early stage.  

Even after one has stopped working after retirement, the money (capital) accumulated over the past decades of hardwork could continue to work for us but need to learn the right ways of investing. Readers may learn from free 4hr stock investment course by Dr Tee to plan for own retirement fund with defensive growing dividend stocks globally in diversified growing sectors.
Register Here: www.ein55.com

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)
Filed Under: Personal Analysis, Stock Market

Dual Roles of REIT Investing as Defender and Striker

Posted on September 14, 2019 Written by
reit investing

REIT investing is a popular investment choice to collect passive income through dividends. By law, 90% of net income from a REIT has to be redistributed back to shareholders in the form of dividend.  A REIT could give dividend 4 times (4 quarters) a year, if an investor could gather a few strong REITs, it is possible to generate a stream of consistent quarterly or even monthly income. One could become financial free with REIT investing as the income (passive income of dividends and capital gain of stock prices) depends on the capital for investment which is scalable and dividend yield which could be maximized (depending on dividend / share price).  Singapore REITs could give out more dividends due to tax exemption, therefore the average dividend yield is usually higher than overseas REITs.

Due to stock market uncertainty over the past few years, Singapore investors prefer to invest in defensive sector such as REITs or blue chip stocks (eg. 30 STI component stocks). As a result, REITs prices have gone up to higher optimism of 53%, resulting in lower dividend yield, narrower spread with nearly risk-free return such as Singapore Saving Bond.  Most people consider REITs for longer term investing, aiming for 5-10% dividend yield yearly. However, over the past 1 year, some REITs are behaving as striker with over 20% return in only 6 months of trading.

As investor or trader has 2 options when considering REIT investing:
1) Investing REIT for Long Term (Defender)
Successful REIT investing requires selection of REITs with strong fundamentals, eg. consistent uptrend quarterly dividend payment, supported by steady free cashflow generated from REITs portfolio.  However, during global financial crisis, unlike property market which is more defensive in nature (dipping by only 25%), REIT has speculative element of stock market, therefore REIT price could even drop by 70%.  It is crucial for long term REIT investing to align entry with a low optimism price during global financial crisis. However, during a very bearish stock market, most retail investors may not take actions due to great market fear (also fearful when others are fearful), therefore missing the opportunity of lifetime to buy low and hold for long term.

2) Trading REIT for Short Term (Striker)
Successful REIT trading requires selection of REITs with reasonable fundamental, supported by uptrend share prices in a bullish stock market (for long strategy). Short term trading mainly aims for capital gains in a few weeks or a few months, following either Buy Low Sell High, or Buy High Sell Higher strategies. When price trend is reversed, a REIT trader has to follow the exit strategy to sell the stock or even cut loss.  It is risky for a REIT trader to enter for short term gain but reluctant to exit as a trader when price trend is reversed, changing to a role of investor halfway, may end up Buy High Sell Low, losing in REIT trading.  Although overseas REITs may not be suitable as defender for dividend income, some strong giant REITs are excellent choices as strikers for capital gains with rising prices.

Successful REIT investing requires understanding difference between investing and trading, aligning with own unique personality (Personal Analysis).  REIT investing also need the knowledge of Fundamental Analysis of business, Technical Analysis of prices, Level Analysis and Optimism Analysis of global stock market.

Readers may learn from Dr Tee FREE 4hr stock investment course on how to invest and trade REITs, applying LOFTP (Level, Optimism, Fundamental, Technical, Personal Analysis) Strategies to select global REITs and blue chip giant stocks, knowing What to Buy, When to Buy and When to Sell.

Register Here: www.ein55.com

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)
Filed Under: Stock Market, Trading, Uncategorized, Value Investing Tagged: ,

Disruptive Technology for Long Term Lifetime Investing

Posted on June 20, 2019 Written by

It is possible for disruptive technology (eg. virtual bank, cryptocurrencies, etc) to change the banking & finance but it won’t be overnight, many major conventional banks are still top choices for longer term or even lifetime investing (need to compare price vs value before entry). SPH has shown weakness since 10 years ago (declining number of newspaper readers and earning), there is enough time to exit from stock investing if one day conventional banks are affected. These blue chips are likely to prepare in advance as well, see how Comfortdelgro adapts to dynamic pricing to fight against Grab Taxi.

Technology stocks are generally not suitable for longer term passive investing (unless monitor both share prices and businesses regularly) as new disruptive technology could change the entire sector, a business could be out-dated if not keep up with R&D. See the changes of mobile phone leaders over the past few decades from Motorola to Nokia to Samsung / Apple / Huawei … how long the BAT-FAANG (Baidu, Alibaba, Tencent, Facebook, Amazon, Apple, Netflix, Google) could continue to dominate the market?

Every generation (about 25 years) has its own unique sector for longer term investing due to business moat during this period. In general, property / bank / utility stocks have longer lasting business and economic moat but careful choice of stocks are critical and understanding the sector cycle to compare share price vs business value, applying strategies of Buy Low Sell High, or Buy & Hold (until value is diminishing one day).

In short, monitor the quarterly or yearly business performance, especially for longer term or lifetime investing, don’t just buy stock and hold for lifetime. How to extend decade of past performance to project into lifetime investing, assuming no challenger for next few decades? Eg, we could see the trend of declining soft drink (carbonated) over the decades, Coke has to make changes or diversify into other products, may not be the same good stock for long term investing as decades ago when Buffett was younger. Similarly, number of smokers (% population) are declining, therefore tobacco / cigarette stock may not be suitable for longer term holding.

Sign up free 4hr stock investment course by Dr Tee to learn various giant stocks of current generation for longer term investing or shorter term trading. Register Here.

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)
Filed Under: Stock Market, Value Investing Tagged: ,

Life Investment Lesson from Kampung Lorong Buangkok

Posted on April 1, 2019 Written by
Life Lesson Beyond Investment from Kampung Lorong Buangkok

Life is not just making money, busy with work or investment, there is a higher level meaning for life.

Today, I have decided to take a break before the busy 6-day Ein55 investment class in April, trekking for 4km along the coast-to-coast trail from Punggol, passing by Kampung Lorong Buangkok, the last kampung or village in Singapore. I visited here with family about 10 years ago when children were still small, deciding to visit there again. I notice some changes around the Kampung (new constructions) but the 26 houses in the Kampung are frozen by time, little changes in my memory, as if going back to kampung time when I was small.

I saw a group of young children with teachers (see photo), listened to sharing by Head of Kampung (co-owner of land), Madam Sng. For younger generation born in city forest, many may not understand what is kampung, the slow pace of living at low cost of living which is rarely found.

I have a chance to chit chat with Madam Sng for about 1 hour to understand the changes in Kampung so far. There are 26 household and 1 mosque in the kampung, some have been staying 3-4 generations there, only paying rental of about $5 to $10 per month (not a typo, if you compare with a few thousands per month of rental for 1 house outside the kampung in Singapore).

I knew about the story of Madam Sng family many years ago, her father bought the land in 1956, after passed away about 20 years ago, leaving the kampung to 4 children (the youngest child, Madam Sng still stays there to manage the kampung). No matter how much is the offer by property developers (last reported “valuation” in 2007 was $33 millions, now could be higher), Sng family refuses to sell, main reason is they want to preserve the spirit of kampung, a valuable heritage for family or even entire nation, something could not be exchanged with money.

The Sng family has kind hearts, helping many other poor families for the past 60 years. Some people may think they are fool for not selling the golden asset of land as sometimes we even see cases of some families in Singapore, children going to court to fight for houses left by parents. Heaven loves “fool” with kind heart (remember the story of Forrest Gump?), rewarding higher return through tremendous hidden capital gains of land prices in Singapore. Assuming a moderate return of 10% CAGR (compounding return) for land price in Singapore, over the past 60 years, it has gone up by 300 times in prices naturally. Even the passive incomes from rental is minimal (artificially suppressed 1000 times lower by the Sng family to help the 26 families in Kampung), Sng family is protected by the natural growth rate of land, which is a default giant for investment.

Some may be envy of the tremendous “investment return” of Sng family, do not know that money is considered secondary for them, generations of families links in the kampung with memory of their parents are more important. I am hoping the Kampung Lorong Buangkok could be there as long as possible (not giving way to future development in Singapore), this is an important life lesson for everyone that money is not everything but when one does the right thing, money would come naturally.

The story of Kampung Lorong Buangkok may not be repeated in future as it is almost impossible for an ordinary investors to buy a land at sky high price in Singapore, holding for generations to preserve the value. However, it is still possible to have similar success through stock investment, one could buy stocks with strong fundamental business or undervalue land, best at low market price if mastering the clock to buy during global financial crisis, then possible to hold for generations, long term return could be comparable with Kampung Lorong Buangkok.

You may learn how to do long term investing through stocks with low capital from Dr Tee free 4 hours investment course. A few examples of long term investing stocks with over 10 times potential in future share prices will be shared.

Remember, money is not almighty but one may not live without it outside Kampung Lorong Buangkok. We do not need to work so hard in active jobs to earn from fixed salary which may be uncertain, better to couple with smart investment through stocks to generate passive incomes and capital gains. We just need more than enough money for life, when financial-freedom is achieved, we can find back the genuine love for life, not for money.

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)



Filed Under: Personal Analysis, Property Market, Stock Market

First Reit Crisis with Lippo Group Analysis

Posted on March 27, 2019 Written by
First Reit Crisis

Ein55 coaching students just review First Reit (SGX: AW9U), a giant dividend stock in Singapore, which mainly collecting rental income through Reits to Siloam Hospitals (owned by same sponsor of First Reit, Lippo Karawaci Group) in Indonesia with triple-net lease without forex risk (pegged at fixed rate to SGD).

However, investing analysis in stock is never on just 1 business, one has to also consider related parties, eg. sponsor of First Reit, Lippo Karawaci (contributed to over 80% of rental income for First Reit), which has a poor credit rating of CCC+, mainly due to long term negative operating cashflow for many years, which expanding in a mega property project aggressively.

Despite strong fundamentals of First Reit, the fear on Lippo Group has corrected First Reit share price from about $1.50/share to $1/share over the past 1 year, dividend yield has climbed up to an impressive 8.7%, comparable to year 2008 during the last global financial crisis.

Ideally, one should buy dividend giant stocks during a crisis to get lower price with stable growing dividend to maximize the dividend yield for long term investing. However, there are different qualities of crisis stocks. Price correction during Level 4 crisis (global financial crisis) is the highest quality if the business remains intact. For the current situation, First Reit is only under Level 2 crisis (despite strong fundamental of First Reit at Level 1, price falls due to fear of deteriorating fundamental of sponsor, Lippo Group), therefore an average quality of low optimism stock.

OUE of Lippo Group is now the second sponsor of First Reit, creating new variable to future of First Reit on dividend growth as the new Reit component may come from Singapore property of OUE (worst if priced at higher level) which may not have the unfair advantages Siloams Hospitals with triple-net lease, fixed forex rate (highly subsidized by sponsor) with high growth of health care industry in Indonesia. However, the change will not be overnight as average lease expiry is about 8-9 years.

For investor who could take calculated risks (in the same boat as Lippo Group and Riady family, waiting for the revival of mega city project), First Reit may be considered for dividend investing but technical analysis should be considered (eg. investing above $1/share which is a critical support, avoiding possible risk of buy low get lower in prices with more future uncertainties) with risk management through diversification over 10 giant stocks. Alternatively, one has the choice of not to invest in average quality low-optimism dividend stock, there are still other better opportunities which are relatively safer.

First Reit & Lippo Group


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Filed Under: Fundamental Analysis, Stock Market Tagged: ,

Bond Market Danger Signal for Global Financial Crisis

Posted on March 26, 2019 Written by
Global Financial Crisis

Gap between global short term bond yield (eg. 3 months or 2 years) and long term bond yield (eg. 10 years) is approaching zero or negative.

See chart of (10 yr vs 2 yr) and (10 yr vs 3 months) bond yields gap, historically after 1-2 years when this signal is triggered, global financial crisis would follow after a very bullish stock market. Will the same pattern be repeated this time as last few market cycles, eg dotcom bubble after year 2000, subprime crisis after year 2007?

Bond price and bond yield move in opposite direction because Bond Yield = Bond Interest / Bond Price. Bond yield is the % return from the bond market.

There are 2 general trends which cause the abnormality in global bond market now with short term bond yield closes to or more than long term bond yield:

1) More people buying long term bond (eg. long term investors who worry about stock market may crash), therefore long term bond price goes up, long term bond yield starts to drop (eg 10 years US bond yield drops from over 3% last year to about 2.45% in Mar 2019).

2) More people selling short term bond (short term fund is transferred from low-return short term bond to other more attractive opportunities, eg short term trading in bullish short term stock market or even deposit cash in bank with rising interest rate which competes with bond market), therefore short term bond short term bond yield has been going up (bond price drops) consistently, especially since year 2015 till now when US starts to increase the interest rate regularly.

Initially, long term bond yield was uptrend together with stock market but with falling of global stock market from level 3-4 high optimism (>75%) last year, long term bond yield has starts to drop from the last peak of over 3%, gap between long term bond yield (eg 10 years) and short term bond yield (eg. 3 months or 2 years) is getting narrower or even reversed (short term bond yield has higher return than long term bond yield) which is abnormal.

This is a danger signal but may not be immediate crash for global stock market. Historically, bullish stock market could still run for 1-2 more years after this abnormal bond market signal is observed. Investors need to pay attention to trend of short term bond yield (eg. 3 months), when it starts to fall down together with long term bond yield from a peak, this will show great fear in global stock market. Currently, short term bond yield still go up (bond price drops) under the momentum, this trend may be stopped or even reversed when US has stopped increasing the interest rate or start to cut down interest rate (signal of weaker economy), then bear market would come again.

Are you worried of the global bond market which may affect the global stock market with the next global financial crisis? As a stock investor/trader, one may position using 2 different unique strategies:

1) Investor – hold (for stocks bought at low last time) and prepare to sell stocks at high by riding the short term bullish stock market.

2) Trader – Buy High Sell Higher if the strong momentum in short term stock market could continue over the next 1-2 years.

Learn from Dr Tee free 4hr stock investment course to learn to grab the golden opportunities to profit from both immediate short term bullish stock market (as a trader) and also next future from global financial crisis (as an investor). 10 secrets of trading and investing will be shared.

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)




Filed Under: Bond Market, Stock Market Tagged:
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