BenjiFuji
2022-09-25

$Straits Times Index(STI.SI)$BearishThe trend of the STI index is implying a downward top line with a stronger support line around 3072. The MACD has turned also indicating bearishness.

On the fundamental side, Singapore's core inflation has jumped to an all time high of 5.1%. This is a 14 year high. What this means is thatfor all people who DID NOT get a 5.1% increment is effectively burning money now.

Even if you were to invest in high interest ratefixed deposits or T-bills of 3%, your money isgoing to lose value over time.

The flip side is that I am bullish for banks like $DBS LTD(D05.SI)$. Interest rates going up isgoing to make banking earnings look wonderful although the question is whether the stock is too overvalued at the moment.

Loading on dry powder and selectively DCAingon quality stocks seems to be the best option now.

What do you think? What's your strategy?

Aside, please be careful if you bring children out for dining. [Surprised] [Sly] 

@TigerStars@CaptainTiger@MillionaireTiger



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Comments

  • 紫南
    2022-09-26
    紫南
    Does Singapore increase its interest rate already? Why DBS get the benefit? Will you borrow more money with higher rate? These questions need to consider. [Thinking] I just feel like Bank sector will be the last to fall. [Onlooker] [Onlooker]
    • BenjiFuji: 
      Good questions [Great]. Yes the rates are going up and banks will benefit from increasing NIM. The rich can still borrow and generate income from a greater margin. [Grin]
  • JC888
    2022-09-26
    JC888
    Isn't it true that SGX performance is influenced by US mkt? And US mkt is retesting its June low now right, no? After the latest 0.75% interest hike on 21 Sep was announced no?
    • BenjiFuji: 
      Yes and no. Historically SGX follows US. However theres been capital flight into SG regionally which makes things more unpredictable.
    • ARIESan: 
      Duno
  • Mojo Jojo
    2022-09-26
    Mojo Jojo
    thanks for sharing!
  • Elky
    2022-09-27
    Elky
    Dca sounds like a plan since no one can predict where the market heads to next
    • BenjiFuji: 
      DCA the right stock or index ya. All the best
  • LWayne
    2022-09-26
    LWayne
    main contributors to STI are the 3 banks. bullish in banks but bearish in STI... 🤔
    • BenjiFuji: 
      Yup, banks contribute 40%. The other 60% will go… [Spurting] Plus need to see extent of growth and decline.
  • prestomanik
    2022-09-27
    prestomanik
    bad time to go in
    • BenjiFuji: 
      Bad time can be good time. Good time can be bad time. [Sly]
    • Bodoh: 
      Many still love DBS… wait for the loans to default
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