2022 – what a year, between rising interest rates, inflation and wars.
US stock markets responded by entering a vicious bear market. Unlike 2020, there is no fast recovery in sight with central banks around the world tightening monetary policy.
Singapore banks like DBS $DBS Group Holdings Ltd.(DBSDF)$ , UOB $United Overseas Bank Ltd.(UOVEY)$ & OCBC $OVERSEA-CHINESE BANKING CORP(O39.SI)$ have not been spared. They have given up most of their gains from the start of the year.
Unsurprisingly, I’ve gotten a lot of emails about them.
One of the big questions is whether their dividends payouts are safe?
2020 – The Year of COVID
It was not too long ago that we were facing a different kind of economic slowdown.
One caused by COVID-19.
Those were dark times as no one knew what was happening. Governments around the world bungled their initial response, leading to horrifying images of death around the world.
Singapore was not spared and I still remember the sight of empty shelves in supermarkets.
I remember it well as I was initially living in Hong Kong as the outbreak first started.
I flew back at the end of January thinking that I would be back by June at the latest.
Sadly this was not to be as Singapore entered a lockdown and borders were shut. It was as though the world had come to a virtual standstill.
The Implication of COVID-19 on Banks
Economic booms and recessions are normal.
The slowdown caused by COVID-19 was anything but.
The near standstill of many parts of our economy had never been seen before & the economic shock was unprecedented.
In response, the Singapore government drew down its reserves and unacted multiple stimulus measures and schemes as JSS (Job Support Scheme) to stabilize the economy.
source: the smart investor.
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