T.U.B Investing

I woke up this morning to realized that the US market has fallen for 3 consecutive days. I seriously felt fine since I anticipate the drop in a post stated in November. But this time round, it hit me quite hard because I was going to do my review for year 2018 soon. Since my portfolio has consist of some US counters, my paper losses will be more huge. With that out of the way, I guess I felt really great moving into 2019. Whenever I look ahead, I felt kinda of excited and believe opportunities will arise especially for fundamental investors like me. For those that are still in the dark, I felt it is time to summarize what had happened in 2018: 1. Since Fed hired Jerome Powell as the Chair, he has been on track to increasing interest rates. 2. As interest rate increases, fixed deposit interest rate becomes higher. Investors started to move their funds into safer haven with some many crisis calls. Less traders were in the market. Banks also increased their fixed deposit inte...

I just like to remind everyone that money supply is constant unless the governments start printing again. However, even thought it is constant, it is flowing. When Fed stop printing, but Euro and Japan continued to print money. It continued to push the economy to the current heights as the money flow into each individual companies' earning. This will also explain that despite the share prices at a high, the PE ratio of many companies (even STI) has yet to hit a significant high figure yet. But do note, as interest rate increases, money supply flowing within the economy will reduce. This is because people will save more, buy more treasuries bonds, etc. Do remember Singapore Government also came out with the Singapore Saving Bonds! Do also remember the Fed may continue to increase the interest rate 3 times in 2018 . In addition, after Fed increases interest rate, China also increases interest rate. Remember China has a very leveraged country in 2017, as the governmen...