Good discussion, thanks!. If you take a look at the performance charts of S-REITS vs S-Banks, am I the only one that is seeing that over time Banks are on an upward trend (sure there is up and down noise but the upward trend is unmistakable) whereas the S-REITS chart shows a flattish line. REITS pays 90% earnings as dividends and always issue new units for asset acquisition like the current exercise by CICT. If you do not participate in the preferential offer, your holdings get diluted. So this is something I do not like about REITS. On the other hand banks retain 50% of earnings to add to its capital to make more business and hence over time the banks become more valuable - hence this partly explains the upward trend in the performance of the banks. I have both reits and banks, they are a good hedge.
Agree with your bank analysis. There are so many youtubers out there suggesting to sell all the SIN banks simply because the potential NIM compression without putting in the efforts to do deeper analysis like you guys.
very interesting. I did exactly what the video says not to do. I sold all my UOB at 31.00 a few months back (i know it is higher now but still not regret) and bought all REITs at roughly bottom low. Now most REITs are at least 15 % up so I am intrigued why selling banks and buy REITs is a bad idea. Yes. now it may be too late and the discussion points in the video are all valid. if I am holding bank stocks right now i might stay put since REITs has gone up so much so entering REITs might be too late. Anyway, just feel that the video discussion is too outdated for thoso who wants to ditch bank for REITs since the sudden REITS surge has happened. But then I guess the system reward those who took courage to buy REITs low in May/June.
Agreeiing with tfp, with our local banks doing well in their non-interest income and yet to reach crazy valuation, the decision is easier for investor as compared to the US market now.
What are your favourite REITs going forward that gives great buying opportunities? I hold Keppel DC, CICT, Mapletree logistics and Mapletree Pan Asia - they’re all up nicely but not sure if could keep averaging in
Gentlemen, it's like Boyle's Law - One is inverse of the other. Banks up, REITs down, then obverse when interest rates reverse. I sold banks too soon, as the banks broke all-time highs. I made profit, but not as much as possible... But, I'm still happy I've made profit. Meantime, I've been buying REITs. Now, that's looking up. Letting values increase meantime till at least March-September 2025. Take things simple, that's my philosophy. Your comments, gentlemen?
Boyle's Law - P is inversely proportional to V IF T (thermodynamic scale) stays constant. Interest rate affects but there are other factors to consider if one is investing for the long-term. Of course, if one is a trader, then looking at price action/movement is probably more important.
Good discussion! It's really coincidental. I published an article with similar title yesterday. One thing that came to mind while writing the article is that REIT sector is a lot more diverse - debt structures, property types, and geographic exposure. So it is important to look at individual REIT before parting our money on it. The good REITs probably can do well if the change in interest rate is gradual as the managers have time to react to the change. Our Singapore banks are really quite unique. To me, they are more affected by economical cycle than interest rate movement.
This is a really good discussion TFP!
Thank you, Chi Keng!
Good discussion, thanks!. If you take a look at the performance charts of S-REITS vs S-Banks, am I the only one that is seeing that over time Banks are on an upward trend (sure there is up and down noise but the upward trend is unmistakable) whereas the S-REITS chart shows a flattish line. REITS pays 90% earnings as dividends and always issue new units for asset acquisition like the current exercise by CICT. If you do not participate in the preferential offer, your holdings get diluted. So this is something I do not like about REITS. On the other hand banks retain 50% of earnings to add to its capital to make more business and hence over time the banks become more valuable - hence this partly explains the upward trend in the performance of the banks. I have both reits and banks, they are a good hedge.
Thanks for sharing! Yes, both are good to own at the right valuations/yields. The quality of the REIT is important too
Agree with your bank analysis. There are so many youtubers out there suggesting to sell all the SIN banks simply because the potential NIM compression without putting in the efforts to do deeper analysis like you guys.
very interesting. I did exactly what the video says not to do.
I sold all my UOB at 31.00 a few months back (i know it is higher now but still not regret) and bought all REITs at roughly bottom low. Now most REITs are at least 15 % up so I am intrigued why selling banks and buy REITs is a bad idea. Yes. now it may be too late and the discussion points in the video are all valid. if I am holding bank stocks right now i might stay put since REITs has gone up so much so entering REITs might be too late. Anyway, just feel that the video discussion is too outdated for thoso who wants to ditch bank for REITs since the sudden REITS surge has happened. But then I guess the system reward those who took courage to buy REITs low in May/June.
感谢你们三位经常做高品质的视频。
Thank you Connie!
agree with the rationale of not jumping to sell the banks
Agreeiing with tfp, with our local banks doing well in their non-interest income and yet to reach crazy valuation, the decision is easier for investor as compared to the US market now.
thank you for another insightful discussion! you guys are the best! :)
Thank you!
Thks thks for a refreshed view. 👍👍👍
Just clear ocbc today. 😊 Wait for next opportunity.
Stay invested
Im still staying away from office spaces reits. Just sticking to datacenters and logistics reits
What are your favourite REITs going forward that gives great buying opportunities? I hold Keppel DC, CICT, Mapletree logistics and Mapletree Pan Asia - they’re all up nicely but not sure if could keep averaging in
Gentlemen, it's like Boyle's Law - One is inverse of the other. Banks up, REITs down, then obverse when interest rates reverse. I sold banks too soon, as the banks broke all-time highs. I made profit, but not as much as possible... But, I'm still happy I've made profit. Meantime, I've been buying REITs. Now, that's looking up. Letting values increase meantime till at least March-September 2025.
Take things simple, that's my philosophy. Your comments, gentlemen?
Boyle's Law - P is inversely proportional to V IF T (thermodynamic scale) stays constant. Interest rate affects but there are other factors to consider if one is investing for the long-term. Of course, if one is a trader, then looking at price action/movement is probably more important.
Can you do an analysis on Estee Lauder?
Dont blindly buy because adam buys
Good point on the bank yield vs bond rate. 👍🏼
👍🏼
Good video, at least we know what to do with our money. Thank you!
Thanks for watching, Phyllis!
You guys are awesome.
Thank you
Our pleasure!
Good discussion! It's really coincidental. I published an article with similar title yesterday. One thing that came to mind while writing the article is that REIT sector is a lot more diverse - debt structures, property types, and geographic exposure. So it is important to look at individual REIT before parting our money on it. The good REITs probably can do well if the change in interest rate is gradual as the managers have time to react to the change. Our Singapore banks are really quite unique. To me, they are more affected by economical cycle than interest rate movement.
Yes, the quality of the REIT is important, whereas the three Singapore banks are of comparable quality.
you guys are cool! thanks for sharing!
Thanks for watching!
Thank you
You're welcome!
50+% payout ratio, more than 5% yield no share dilution, why sell?
I am staying away from reits
Brought some of the REITS too early, average them down last 2 months. Hope for the best 🤞
Some nice yields there if you got in at the right price
What happens if rate cut is 25 bps if stocks rise or people expect 50 bps if 25 bps made stock market correction reply me
We can't predict what the rate cut will be or the immediate market reaction
@TheFifthPersonChannel Even if they cut rate by 50 points the Fed Fund Rate will reduce from 5.5% to 5%. It is reduced but not earth shaking.