Great article, would you like to share it?@Samlunch:$DBS Group Holdings(D05.SI)$ $CapLand IntCom T(C38U.SI)$ Interest rate cuts will affect us 3 ways: ☝🏻 As borrowing costs come down, debt will become easier to manage. We Singaporeans love buying property, and lower rates mean a higher loan amount within the TDSR and MSR caps. So property prices go up! And loan volume goes up! Reits benefit as their portfolio will be revalued upwards. Banks benefit from the loan volume. 🥈Debt payments reduce and reits will be able to pay out more of their income as dividends. A higher DPU benefits current holders and share price will appreciate. 3️⃣ Lower rates mean it is easier to conduct business. The economy will grow as companies can expand, hire more, pay more. With improved employment and wages, consumption can increase and GDP growth will come. Thats an overall boon for SG stock market!
$DBS Group Holdings(D05.SI)$ $CapLand IntCom T(C38U.SI)$ Interest rate cuts will affect us 3 ways: ☝🏻 As borrowing costs come down, debt will become easier to manage. We Singaporeans love buying property, and lower rates mean a higher loan amount within the TDSR and MSR caps. So property prices go up! And loan volume goes up! Reits benefit as their portfolio will be revalued upwards. Banks benefit from the loan volume. 🥈Debt payments reduce and reits will be able to pay out more of their income as dividends. A higher DPU benefits current holders and share price will appreciate. 3️⃣ Lower rates mean it is easier to conduct business. The economy will grow as companies can expand, hire more, pay more. With improved employment and wages, consumption can increase and GDP growth will come. Thats an overall boon for SG stock market!Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.