Wall Street braces the US Dollar for further gains, while stocks dip.
Dividend stocks are gaining sensation in both S'pore and China markets.
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1. Market recap
Look what you make me DOGE: On November 12, President-elect Trump announced in a statement that Elon Musk and Vivek Ramaswamy would jointly lead a planned initiative called the "Department of Government Efficiency" (DOGE) after he takes office.
Trump said that DOGE could become the "Manhattan Project" of this era, providing "advice and guidance" from outside the government, and would collaborate with the White House Office of Budget and Management to "promote large-scale structural reforms and create an unprecedented entrepreneurial approach to government governance." Trump said their work would be completed no later than July 4, 2026 - the 250th anniversary of the signing of the Declaration of Independence.
Trump said that Musk and Ramaswamy would assist the government in dismantling bureaucracies, cutting excessive regulations, reducing wasteful spending, and paving the way for reorganizing federal agencies.
2. On Top of USD
On Tuesday, major indices closed lower, with the $.SPX(.SPX)$ ending its previous four consecutive trading days of gains. Bitcoin once broke through the $90,000 mark, and the $USD Index(USDindex.FOREX)$ rose to its highest level in four months. The Nasdaq index edged down slightly by 0.09%, with technology leaders generally falling, while Nvidia closed up 2%. The dollar’s upward momentum is building a week after Trump won the U.S. presidential election, prompting Wall Street strategists to brace for further gains.
In a video released by Goldman Sachs YouTube channel on the 12th, $NVIDIA Corp(NVDA)$ CEO Jensen Huang discussed how accelerated computing can drive the development of AI by improving data processing speed, and how Nvidia can provide value in the data center market. In the interview, he talked about Nvidia's role in promoting medium and long-term opportunities in the data center market, emphasized the potential of AI in improving efficiency and reducing costs, and reaffirmed Nvidia's moat (algorithms, computing architecture, and installed base) in AI landscape. He also discussed the partnership with $Taiwan Semiconductor Manufacturing(TSM)$ , emphasizing that Nvidia is prepared at all stages of the supply chain to deal with potential geopolitical risks.
In China's A-share market, major indices began to recover and rise, and high-dividend assets were favored. The market focus returned to sectors such as high-dividend assets and Chinese state-owned enterprises. After a period of silence, high-dividend assets, aka YYDS in China, rebounded this morning, and Chinese state-owned enterprises also performed actively. Specifically, the three major telecom operators, China Unicom rose by over 7%, China Telecom rose by 5%, and China Mobile rose by nearly 4%.
3. Dividend Play: Major Banks
Investing in high-dividend stocks is an effective strategy to cope with market pullbacks and volatility. High-dividend stocks typically come from companies with stable performance and abundant cash flow.
When the market experiences pullbacks and volatility, they can maintain a relatively stable operating condition with their own advantages, thereby providing investors with continuous and stable dividend income.
When investing in high-dividend stocks, one can adopt the operational technique of stepwise position building. Stepwise position building means not investing all funds at once, but gradually buying in stages. The advantage of this is that it can reduce the impact of market volatility on investments, while also providing investors with more flexibility and adjustment space.
Investors can formulate a reasonable position-building plan based on your own financial situation and risk tolerance.
$DBS Group Holdings(D05.SI)$ , $ocbc bank(O39.SI)$ and $UOB(U11.SI)$ are important constituents of the $STI.SI(STI.SI)$ , with a ballast stone status. These three banks hold a pivotal position in the Singaporean financial sector.
DBS Bank is renowned for its extensive business network and innovative financial services; OCBC Bank has earned a good reputation with its stable business strategy and high-quality customer service;
UOB Bank excels in risk management and diversified financial products. They not only provide strong financial support and services for Singapore's economic development, but also demonstrate the strength and competitiveness of the Singaporean financial industry in the international financial market.
SGX Dividend Play - Financials (as of 13th Nov. 2024)
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