Sunday, August 28, 2016

Should Investors start to sell these stocks now?

When news first broke in the world of the Zika virus, I read of what happened in Brazil and was afraid that Zika could come to our shores. And after a long time, news broke out last week that Zika virus found its way to Hong Kong, and I thought with Zika in such a close proximity, Singapore would likely to have similar cases (the Zika case in Hong Kong later proved to be negative).

What investors need to know about the stocks markets next?

Singapore stocks, in my opinion have been trading without much of a lead, as investors would like to know and understand what the macro trends shaping the stocks markets will be. And now, we have some sort of an inkling.

First, the much anticipated decision of the US interest rate hike. It is getting much clearer after Janet Yellen’s speech that the interest rate hike is still on the table and many analysts and stocks markets watcher believe the US will increase the interest rate at most twice by the year end. Should the interest rate rises incrementally, the effect on stocks markets will be felt incrementally; but overall, the effect on stocks will be felt. I should not elaborate here on this blog as to what these effects are since in the internet, there are so many literatures on this front.

Saturday, August 27, 2016

Will you Buy these five billion-caps Singapore stocks now at 50% discount?

There are undervalued stocks; defined as those having their price-to-book ratio below one and there are highly undervalued stocks; defined as having a lower price-to-book ratio. For the latter, I would like to ascribe a price-to-book ratio of 0.5 so that theoretically, should an investor buy these stocks; they are paying just a half of the book value. In a way, this idea is attractive since it is just like a 50% discount off these highly undervalued stocks.

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