Wolf Money(My 2c worth on the market)short summary

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(It is always the darkest at dawn before sunrise)


I have been observing the market more closely than ever because stocks had never been so cheap since 2020. Some stocks had even gone below covid era valuation. 

I have been more active in the market in recent days buying some dividend plays. They are what I consider building block of any portfolio. The current risk free in Singapore is around 3.5%. Given the higher risk free, it will only made sense to buy into companies which pay at least 6% or just slightly below that level but not much lower at current juncture. Buying into net cash companies give a higher visibility in term of dividend payout. Another matrix I lookout for is the payout ratio and sustainability of earning. If a company is paying 100% out of earning, it runs the risk of a dividend cut due to poor earning. If our local risk free rate jumped to 4 percent, a company with a minimum of 6.5% dividend yield will be considered desirable. Good dividend paying companies can generate good passive income in recessionary environment.

I have widen the pool of stocks which I may consider buying including non Singapore listed company due to their attractive valuation. The US market is in the 11th month of bear market. The Hong Kong market started their bear run earlier than the US market in or around June 2021.(around 16th month and counting) A bear market typically last 12-18 months. I am slowly getting back into the market starting with the safer stocks. No growth, no tech yet. More informations will be discussed at month end LWF portfolio update. Stay safe. God bless!


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Disclaimers 

All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for information only. Buyer beware,do you own due diligence.

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