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Gold price to hit US$3,000 in 2023?

In my last article on gold on 4 December 2021, I made the argument that gold price was set for a big fall in 2022 due to the possibility of US interest rate hike. I also highlighted that a drop in gold price would represent good buying opportunities for bullion investors. Indeed, gold price had a major decline in 2022, falling from US$2,040 per troy ounce on 8 March 2022 to a low of US$1,628 per troy ounce on 3 November 2022.

Admittedly, I had not practised what I had preached as I had not bought bullion when gold price collapsed in 2022 (my funds were tied up in the purchase of a new home). Nonetheless, I was shocked that Monetary Authority of Singapore (MAS) had done so in late 2022.

According to the MAS website on International Reserves and Foreign Currency Liquidity, the volume of gold held in our national reserves in December 2022 was 4.94 million troy ounces. As at January 2023, the volume of gold held surged to 6.38 million troy ounces. Thus, the increase in gold held in Singapore reserves represented about 30%. This means that within the span of just a month, MAS had increased gold bullion by a significant quantum.

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OCBC share price (SGX: O39) in trouble

Lifetime Membership In banks, things move at the speed of light. Within the span of just one week, three large US banks had failed – Silicon Valley Bank, Silvergate and Signature Bank. The collapses ignited global fear of contagion in the financial sector, leading to another massive financial crisis not seen since 2008. The fear is not unfound as Credit Suisse got rescued by Swiss National Bank with a US$54 billion loan while a consortium of US banks loaned First Republic a whopping US$30 billion to prevent a contagion from spreading in US. Against this backdrop, what is the implication for OCBC share price?

The narrative for OCBC share price had certainly turned scary in 2023. When I invested in OCBC in August 2021, my thesis was that bank stocks should perform well in high inflationary environment as high interest rates generally lead to higher net interest incomes for the banks. Back then, I had anticipated that US Federal Reserves would hike interest rates in 2022 and that Singapore bank stocks would be the biggest beneficiary from the rate hikes. However, it seems that the series of interest rate hikes by US Federal Reserve could be tipping global economy into a financial crisis instead.

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Singtel share price (SGX: Z74) in crisis

Lifetime Membership What an ambush out of nowhere! It seems that I had grossly underestimated the impact of Optus cybersecurity attack on Singtel share price (SGX: Z74).

Six months had passed since the Australian unit of Singtel suffered the fateful cybersecurity attack but Singtel share price (SGX: Z74) continued to be in sluggish form. In fact, at current trading levels, Singtel share price has reverted to the previous low in the aftermath of the cybersecurity attack. When can the counter shake off the blues?

Singtel share price

In my last article, I wrote that Singtel share price (SGX: Z74) might have turned the corner due to several strong financial performances in the past few quarters. However, in the stock market, sentiments often prevail. In this regard, clouds of uncertainty may engulf Singtel share price (SGX: Z74) in the coming months until the cybersecurity issue is fully addressed.

To recap, in 22 September 2022, Singtel revealed that its Optus customers’ data were leaked following a cybersecurity attack. Then in October 2022, the telco announced that about 1.2 million of the Australian customers were affected. Apparently, some of the customers’ passport numbers were exposed by the perpetrators. The incident led to fear that a massive class suit action could be coming Singtel’s way.

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AEM share price blew up in pieces

Lifetime Membership What an explosive free fall! AEM share price (SGX: AWX) plunged by nearly 15% within two days following the release of the full-year financial result for FY2022 on 24 February 2023. The trigger for the sell-offs was not attributed to the financial result, which was stellar by the way. Instead, investors were spooked by the revenue forecast for FY2023.

After achieving a record revenue of $870.5 million for FY2022, the management guided revenue of just $500 million for FY2023 “that may be revised as second half visibility becomes clearer”. The market wasted no time punishing AEM share price (SGX: AWX), sending the counter straight to the bottom.

AEM share price

Short-selling volume surged to a high of 2.8 million on 27 February and 1.67 million on 28 February. The daily short-selling volume on AEM was roughly about 200,000. So the recent spike in short-selling volume represented about 10-fold increase, leading to the short-term volatility in AEM share price (SGX: AWX).

In this blog, I have always maintained that on its day, AEM share price (SGX: AWX) can be unbeatable. Conversely, when the tide goes against AEM share price, the counter can spiral out of control. In view of this, this counter is really not for the faint-hearted.

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DBS Group Holdings share to hit $50 in 2023?

Lifetime Membership Is it a healthy correction or the start of a slippery slope? After announcing a record net profit of $8.19 billion for FY2022, DBS Group Holdings share price stunned the market by falling from $36 on 10 February 2023 to $34.70 on 15 February 2023. The decline represented a 3.6% in DBS Group Holdings share price within a week.

The volatility of DBS Group Holdings share price should not be attributed to the financial result of FY2022. Rather, the market should be rattled by CEO Piyush Gupta’s revelation of DBS loan exposure of $1.3 billion to beleaguered Adani Group, which has been targeted by short seller Hindenburg Research. The Adani Group is alleged by Hindenburg Research for stock manipulation.

DBS Group Holdings share price

To be fair to Piyush Gupta, the amount of loan issued to Adani Group represented only 0.3% of the total loan portfolio of DBS Group. Thus, the collateral damage should not be significant even if the full amount of $1.3 billion is write-off. But of concerning to most investors is how many Adani will DBS Group face in 2023 against the backdrop of a possible global recession?

DBS Group emerged victorious from the devastating pandemic as DBS Group Holdings share price smashed a record high of $37.25 on 11 February 2022.

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Lenovo share price (HKEX: 992) to rocket in 2023?

Lifetime Membership 7th March 2022 will be remembered as a memorable day for investors of Lenovo as the stock was included in the prestigious Hong Kong’s benchmark stock gauge – the Hang Seng Index. Consequently, Lenovo share price (HKEX: 992) rose steadily to a 52-week high of HK$9.00. The entry into Hang Seng Index capped a stunning turn of event as Lenovo scrapped its US$1.8 billion mega IPO in Shanghai Stock Market only in October 2021.

The bizarre withdrawal from Shanghai Stock Market had caused a temporary crisis of confidence for Lenovo share price as the counter dived 17%. But not for long as Lenovo share price (HKEX: 992) recovered swiftly from the crash following the inclusion into Hang Seng Index. In this regard, the volatility of Lenovo share price (HKEX: 992) is certainly not for the faint-hearted.

Lenovo share price

And that’s not all. Two weeks after Lenovo share price got included into Hang Seng Index, US Federal Reserves launched a series of interest rate hikes that rattled global stock market. During that period, Russia’s invasion of Ukraine added further turmoil to global financial market. These two events created uncertainties, causing sell-offs on growth stocks. Lenovo share price (HKEX: 992) was not spared from the carnage and the counter has been on a bearish run for pretty much of 2022.

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Cathay Pacific share price in death spiral

Lifetime Membership Not even the lure of 500,000 free air tickets to Hong Kong could revive the ailing Cathay Pacific share price. The counter continued to be in sluggish form after the announcement by Hong Kong government. Year-to-date, Cathay Pacific share price fell by 6.89%.

The unprecedented disruption caused by COVID-19 to air travel will be remembered by many for generations. For Cathay Pacific, the past three years had been nothing short of a prolonged terrifying nightmare due to the travel restrictions and strict quarantine requirements for Hong Kong-based aircrew. No doubt about it, these measures inflicted substantial impact on Cathay Pacific’s business. Whilst most countries had reopened in 2022, Hong Kong closely followed China’s zero COVID policy, at a hefty price to the economy of Hong Kong.

Cathay Pacific share price

Then, on 14 December 2022, the Asian financial hub stunned the world with the announcement of the lifting of all COVID-19 restrictions on travellers. Surely, the worst must be over for Hong Kong. Could this herald the bottom of Cathay Pacific share price?

According to IATA, the airline industry had been the most profitable for decades in the period from 2010 to 2019. Cumulatively, the combined profits of the airlines amounted to a staggering US$220 billion.

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Sembcorp Marine share price to rock in 2023?

Lifetime Membership Is this really light at end of the tunnel for Sembcorp Marine share price? On 27 January 2023, SGX gave the green light for the acquisition of Keppel O&M by Sembcorp Marine through the issuance of 36.8 billion new Sembcorp Marines shares. The SGX nod was a major breakthrough for the merger between the oil-rig giants, heralding the end of a long running saga.

To be sure, the proposed merger is not a done deal yet as it is subjected to shareholders’ voting in an extraordinary meeting to be held on 16 February 2023. Sembcorp Marine must obtain more than 50% votes from its shareholders (excluding Temasek Holdings) in order for the acquisition to go through. Against this backdrop, investors should expect plenty of volatility for Sembcorp Marine share price in the coming weeks.

Sembcorp Marine share price

In the EGM circular, the Sembcorp Marine warned shareholders that there is “no assurance that as a standalone entity, the SCM Group will continue to receive the necessary support from its banks, financiers and significant shareholder, Temasek Holdings (Private) Limited”.

In my opinion, the caution is not warranted as its almost a certainty that shareholders would vote in favor for the merger. And it’s not so much of the expectations of a business turnaround.

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AEM share price (SGX: AWX) faces calamity

Lifetime Membership What a disaster! A brutal winter beckons ahead for AEM share price following the release of the recent disastrous Intel’s 4th quarter financial result. The day after the release of Intel’s financial result, AEM share price tumbled 3%.  It remains to be seen if this is the start of another slippery slope for AEM share price in the coming weeks as the full-year financial result for AEM will be released in February.

In October 2022, AEM share price had suffered a devastating meltdown of 25% within two weeks following reports that Intel is going to lay off workers amid steep decline for its core businesses – PC and Data Center. In this blog, I have always maintained that on its day, AEM share price can be unbeatable. Conversely, when the tide goes against AEM share price, the counter can spiral out of control. In view of this, this counter is really not for the faint-hearted.

AEM share price

The full-year financial result for AEM should be stellar based on the 9MFY2022 financial performance. This should provide a much-needed booster shot for AEM share price. However, investors must be wary of a bull trap as the market is bracing for a looming downturn.

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Comfort Delgro share price crashed to new low

Lifetime Membership It is a case of all hell broke loose. Comfort Delgro share price faces potential crisis as it plunged to a record low of $1.14 on 16 January 2023. What could have led to the gut-wrenching train wreck for Comfort Delgro share price? After all, we are only less than one month into 2023. The devastating meltdown of Comfort Delgro share price have prompted an SG Wealth Builder member to request for a write-up on this counter. Should investors sell everything and run for their lives?

Comfort Delgro is a transport company with a total fleet size of about 34,000 buses, taxis and rental vehicles. SBS Transit, a listed company, is a subsidiary. Vicom, another SGX-listed company, is another subsidiary. For the past decade, Comfort Delgro has spread its wings overseas, with operations in Australia, the United Kingdom, New Zealand, China, Ireland and Malaysia.

Comfort Delgro share price

Although Comfort Delgro is widely perceived as a taxi company, the Group traditionally derived its main bulk of the revenue from the public transport services (bus and rail). In this context, several major changes in the rail-hailing and public transport from 2018 to 2019 had impacted Comfort’s businesses. Among them is the New Rail Financing Framework.

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Wilmar share price swim or sink in 2023?

Lifetime Membership How will Wilmar share price unravel in 2023? In my previous article, I wrote that Wilmar share price fell from the sky and lost its way in 2022 following a series of unfortunate events. The roller coaster form of Wilmar share price had left many investors befuddled. After all, the Group had been consistently churning out good financial results in recent years. In this article, I will share my insights on the outlook of Wilmar share price in 2023.

First thing first. I must clarify that Wilmar is one of my favourite SGX stocks, so my views may be biased. In 2020, I had invested in Wilmar and exited at a profit of $2,700 in early 2021. My lowest entry of Wilmar share price was $4.84 and I exited at $5.20. While I did not exit at the highest point of $5.60, I have no regrets selling my Wilmar stocks. In life, you can never sell at the highest point. Despite so, I would caution that due to the volatility of Wilmar share price, this stock is really not for the faint-hearted.

Wilmar share price

There are a few driving factors behind the volatility of Wilmar share price, and they are largely attributed to the core business in Indonesia – palm oil plantations.

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iFAST share price to hit $20?

Lifetime Membership Will iFAST share price enjoy another fairy-tale run in 2023? iFAST share price became stuff of legend in SGX Mainboard when the counter rocketed from $1.00 in 2020 to an incredible high of $10 in 2021. The meteoric rise of iFAST share price certainly created plenty of wealth for many iFAST investors.

For background, iFAST is an online platform company offering investment products to retail investors. At the same time, financial institutions and banks can distribute their investment products through iFAST’s platform. The supersonic boom of iFAST share price in recent years was due to iFAST winning the award of Hong Kong ePension scheme in early 2021.

iFAST share price

Incidentally, iFAST share price was given a mighty booster shot by the pandemic due to the trading boom from 2020 to 2021. As many investors were working from home and unable to travel due to borders’ restrictions, there were plenty of opportunities for retail investors to capitalize on the market corrections during that period. As a result, iFAST’s Asset under Administration (AUA) rose from $14.45 billion in FY2020 to $19 billion in FY2021.

However, Man proposes, God disposes. The wheels came off the wagon for iFAST share price in 2022 as the series of interest rate hikes by US Federal Reserve and the Russia-Ukraine war combined to knock the wind out of global stock markets.

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Keppel share price worth $15?

Lifetime Membership A new year, a new beginning! How will Keppel share price unravel in 2023? Time flies. It has been more than one and a half year since Keppel Corp entered into a non-binding MoU with Sembcorp Marine to combine Keppel Offshore & Marine (KOM) and Sembcorp Marine. Under the deal, KOM will be merged with Sembcorp Marine. In addition, Keppel will receive shares in the listed entity and a cash consideration of up to $500 million. Given the protracted negotiations, investors must be feeling impatient. Will the deal go through or not?

During this period, the oil and gas sector has seen a remarkable recovery as crude oil price smashed past US$120 per barrel in March 2022 with the onset of the Russia-Ukraine war. While oil prices had cooled down since then, the demand for oil-rigs had been healthy in 2022. Against this backdrop, investors must be wondering if Keppel Corp should continue with the merger. Notwithstanding this, Keppel Corp investors had voted in favour of the 2 resolutions during the extraordinary meeting held on 8 December 2022 (99.96%).

Keppel share price

Even though Keppel investors had voted overwhelmingly for the merger, it is not a done deal yet. In life, never say never.

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Building wealth in 2023

This should be my last article for 2022. As we look back and reflect, 2022 would be remembered as the year in which US Federal Reserve unleashed its aggressive interest rate hikes to fight inflation. As a result, Singapore banks also increased borrowing rates. And then in a week time, GST will be hiked to 8% and then to 9% in 2024. Against this backdrop, it is not matter of choice for Singaporeans to consider growing their wealth to beat the cost of living. All Singaporeans must start the journey as early as possible.

Wealth

Stop tracking expenses!

Early on in my wealth journey, I confess that I did track my monthly expenses and personal income religiously without fail. But I had stopped doing so after three years because I noticed there were no significant improvements in my personal cash-flow. Instead of enhancing my wealth, the quality of life inadvertently dropped as I suffered from guilt pangs whenever there were unexpected expenses incurred from friends’ outings or wedding dinner red packets.

After a while, I began to realize that my life should not be controlled by a spreadsheet. I need to be larger than life and start living a life. After all, we only live once.

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Singtel share price (SGX: Z74) in return of the prodigy?

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As we approach the end of the year, it is time to review the performance of Singtel share price. Year-to-date, Singtel share price rose by 10.30%. Whilst the increase was decent, the stock should have performed even better, if not for the prevailing bearish market sentiments. In fact, the stock was actually on a bullish form in the earlier part of the year, surging from $2.30 in January 2022 to a high of $2.80 in May 2022. Then the series of US Fed interest rates came along to douse the bullish form of Singtel share price.

Indeed, the series of interest rate hikes had rattled global stock markets. Singtel share price was not spared from the turbulence. From May to October 2022, Singtel share price had been in bearish form in the aftermath of the interest rate hikes. Despite so, my observation is that $2.60 is the support level for Singtel share price. Each time this level is reached, Singtel share price will somehow rebound.

Singtel share price

It seems that Singtel share price enjoyed the support from institutional investors. In 2022, the counter was often ranked in the monthly Top Ten Institutional Net Buy Lists except for the months of June, May, March and January (December result is not compiled yet).

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Wilmar share price fell from sky

Lifetime Membership As we approach the end of 2022, it is time to review the performance of Wilmar share price. From a decade high of $5.60 in February 2021, Wilmar share price fell from the sky and lost its way. Looking back, the explosive form of Wilmar share price was largely due to the listing of its subsidiary, Yihai Kerry Arawana (YKA). Nonetheless, that form did not last somehow as the counter collapsed to $4.15 toward the end of 2021. What has gone wrong for this leading light of Straits Times Index (STI)?

To add to the intrigue, the implosion of Ukraine-Russia war in early 2022 led to a commodity boom. The unfolding event saw Wilmar share price recovering its form as the stock rose to a high of $4.90 in March 2022. Then again, Man proposes, God disposes. The month of March 2022 coincided with US Federal Reserve launching a series of interest rate hikes. Consequently, all hell broke loose for Wilmar share price. The roller coaster form of Wilmar share price must be gut-wrenching for investors.

Wilmar share price

In 2020, I invested in Wilmar and exited at a profit of $2,700 in early 2021. My lowest entry of Wilmar share price was $4.84 and I exited at $5.20.

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Is crypto rat poison?

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From Terra to Hodlnaut, Celsius and Three Arrows Capital, 2022 will be remembered as the year of the implosion of crypto. The latest to join the list is FTX, which counted Temasek Holdings as one of its biggest backers. Indeed, the bloodbath of crypto had caused plenty of heartaches for retail investors. As we approach the end of the year, it is timely to do some reflections.

In this article, I will share my insights on three important money advice. The story is written from the perspective of Christianity but I have adapted the story to reframe it from the angle of wealth building. Note that I am not a Christian and this is definitely not an article meant to spread Christianity. Instead, I believe that readers can benefit very much from this sharing in the course of their financial journey.

crypto

In life, we will always receive money advice from well-meaning friends and relatives. Yet, very often, it is only those simple money advice that really withstand the test of time. As a matter of fact, the three money advice contained in this article served me rather well in my financial journey. Thus, I am sharing this article with readers.

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Sembcorp Industries share price defied gravity!

Lifetime Membership As we approach the end of the year, it is time to review the performance of Sembcorp Industries share price. In July 2022, I made a forecast that Sembcorp Industries share price would fly after the Group issued a profit guidance that the “financial results for 1H2022 is expected to be materially higher than 1H2021”. Indeed, Sembcorp Industries share price had a fine run, surging from $3.00 on 22 July to hit a high of $3.50 on 6 September.

Year-to-date, Sembcorp Industries share price increased by an incredible 61.2%, making the counter one of the best performers (if not the best) in Straits Times Index (STI). It seems that not even the market turbulence brought forth by the US interest rate hikes could disrupt the bullish form of Sembcorp Industries share price in 2022. Question now is whether Sembcorp Industries share price can carry on its fine form in 2023?

Sembcorp Industries share price

Admittedly, I am a big fan of Sembcorp Industries as it was my best investment. I had clocked in a profit of $17,500 after cashing out in December 2020. Back then, I had predicted that Sembcorp Industries share price would continue to perform well in 2021, which it did.

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OCBC share price to shine in 2023?

Lifetime Membership As we approach the end of the year, it is time to review the performance of OCBC share price. I had bought 6000 OCBC shares in August 2021 but exited when OCBC share price was trading at $12.40. The key reason for my exit was the unpredictability of OCBC share price.

When I invested in OCBC in August 2021, my thesis was that bank stocks should perform well in high inflationary environment as high interest rates generally lead to higher net interest incomes for the banks. Back then, I had anticipated that US Federal Reserves would hike interest rates in 2022 and that Singapore bank stocks would be the biggest beneficiary from the rate hikes. However, OCBC share price had not taken off as I have envisioned it to be. And I was humbled.

OCBC share price

Year-to-date, OCBC share price has risen by only about 8.3%. While this is a really decent performance, it should be highlighted that US Federal Reserve has hiked four consecutive 75 basis point of interest rates. Against this context, OCBC share price should have increased by a higher margin but have flattered to deceive so far. What could be the key factors?

The problem with OCBC share price is that it is vulnerable to short selling activities.

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SIA share price (SGX: C6L) on bullet train!

Lifetime Membership Hurry! The train is leaving! SIA share price (SGX:C6L) looks set for a supersonic run after the Group posted a record $1.23 billion half-year operating profit. The blow-out result came on the back of a surge in travel demand as Singapore fully opened its borders to vaccinated travellers since April 2022. To put the icing on the cake, the Group declared its first dividend in three years.

For sure, Christmas certainly comes early for SIA investors. The turnaround for the national carrier had taken longer than expected due to the protracted pandemic. Those who had given up on SIA share price (SGX: C6L) could be forgiven as there had been so many twists and turns. Nonetheless, the latest financial result would put to rest any lingering doubts that this is another false dawn for SIA share price (SGX:C6L).

SIA share price

The explosive pent-up demand for air travel led to revenue for 1HFY2022/23 surging almost 200% to hit $8.4 billion while net profit reached $927 million. During the first half, revenue from passenger segment rose nearly 700% year-on-year to nearly $6 billion. Traffic was a staggering 11-fold higher, underscoring the phenomenon of revenge leisure travel.

SIA share price in wheel of fortunes

SIA share price in baptism of fire!

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Mapletree Logistics Trust (M44U) so bad its good

Lifetime Membership In August 2022, I wrote that Mapletree Logistics Trust (SGX: M44U) returned from coma as the counter surged to a high of $1.81. Yet that bullish run did not last as the unit price bombed out to a low of $1.42 on 21 October. Whilst Mapletree Logistics Trust (SGX: M44U) had managed to climb back to $1.60 in November, the trashy form of the unit price certainly left a bitter taste in investors’ mouth.

Year-to-date, Mapletree Logistics Trust (SGX: M44U) declined by about 13%. The sluggish unit price of Mapletree Logistics Trust (SGX: M44U) was attributed to the lack of buying by institutional investors. For nearly 11 months, Mapletree Logistics Trust did not feature in the SGX Top Ten Institutional Net Buy Stocks.

M44U

To be fair to the S-REIT, 2022 has been a difficult year for most stocks as global stock markets suffered endless shelling from the US Federal Reserve’s aggressive interest rate hikes. Many S-REITs and technology stocks had been razed to the ground as investors fled for their lives due to concerns that the soaring interest rates would hurt bottom-line for companies operating in these sectors.

For S-REITS, falling unit price poses a tricky challenge because most of them tend to conduct equity funding to raise capital for acquisitions.

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AEM share price on US$3 billion goldmine!

What a swashbuckling return! From a low of $3.08 on 21 October, AEM share price stormed back in style to hit a high of $3.47 in recent days. The recovery of AEM share price came on the back of a stellar 3rd quarter financial result. In this blog, I have always maintained that on its day, AEM share price can be unbeatable. Conversely, when the tide goes against AEM share price, the counter can spiral out of control. In view of this, this counter is not for the faint-hearted.

The recent rout of AEM share price was attributed to the troubles faced by its key customer – Intel. Consequently, various analysts came out slashing their targets for AEM share price. Intel is struggling to turn around its business as it incurred loss of US$500 million in 2nd quarter.

While 3rd quarter saw Intel recording US$1 billion profit, the result still paled in comparison to the US$6.8 billion profit recorded in Q3FY2021. As the US chipmaker tried to revive its business, it announced cost reductions of US$3 billion in FY2023. Being a key supplier of back-end test equipment for Intel, AEM may be affected if Intel chooses to defer its test equipment orders from AEM.

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DBS Group Holdings share price in jet lag!

Lifetime Membership From a low of $32.40, DBS Group Holdings share price shook off the blues of Black October to smash to a six-month high of $34.20. The return of DBS Group Holdings share price came on the back of a stellar 3rd quarter financial result that saw the bank recording a record $2.24 billion net profit. But before investors had the chance to pop the champagne, US Federal Reserve decided to gate-crash and spoil the party.

DBS’ latest financial result was released a day after the Fed unleashed the fourth interest rate hike of 75 basis points in this year. At the same time, the Fed also hinted of further interest rate hike ahead, albeit at smaller increase, in its bid to fight inflation. The latest move by the Fed sent global stock markets into another tailspin. In the process, DBS Group Holdings share price was rattled as well.

DBS Group Holdings share

By right, banks should be the biggest beneficiaries from the interest rate hikes because of the increase in their net interest incomes. Yet the concern right now is whether the aggressive interest rate hikes could tip global economy into a long recession. In the face of a potential Singapore’s economic downturn, local banks will be the first in the line of fire.

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Supplementary Retirement Scheme (SRS) withdrawal

Lifetime Membership Following my previous article, “My first CPF top up”, a member of SG Wealth Builder wrote in to enquire on how retirees could withdraw their Supplementary Retirement Scheme (SRS) monies without incurring income tax. In this article, I will share some of my insights on SRS withdrawal.

In accordance with the Retirement and Re-employment Act, the statutory retirement age in Singapore is raised to 63 in 2022. In the context of SRS, this change is significant as it could affect the penalty and tax liability upon SRS withdrawal.

SRS withdrawal

Unlike CPF withdrawal, you can make SRS withdrawal anytime. However, if the SRS withdrawal is made before the statutory retirement age prevailing at the time of the first contribution, 100% of the sum withdrawn will be subject to tax. A 5% penalty for premature withdrawal will also be imposed.

According to IRAS, “Withdrawals are penalty-free only if they take place on or after the statutory retirement age (63 effective from 1 Jul 2022) that was prevailing at the time of your first SRS contribution (i.e. prescribed retirement age). If you have already opened an SRS account and made your first contribution, any subsequent change in the statutory retirement age (e.g.

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My first CPF top up

Lifetime Membership Last weekend, I made my first CPF top up to my spouse’s CPF Special Account. The cash top up of $8,000 was meant to be a birthday gift to supplement her retirement savings but I have decided to do it on an annual basis going forward. Previously, I have written in this blog that I would never do a CPF top up for myself nor my loved ones. This is because CPF top up is irreversible. In this article, I will share the reasons for the change of heart.

By making CPF top up to our Special or Retirement Accounts, we can grow our retirement savings through attractive CPF attractive rates. In doing so, we will enjoy higher monthly pay-outs when we retire. Currently, savings in the Special Account (SA) and Retirement Account (RA) earn interest of 4% per annum. The first $60,000 of your combined balances (capped at $20,000 for Ordinary Account) earns an extra 1% interest per annum. If we start young, the compounding effect of the interest rate could snowball our retirement savings to a significant amount through the decades.

CPF top up

Apart from growing our retirement savings, CPF top up also allows us to enjoy tax relief.

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AEM share price sank into quicksand

Lifetime Membership From $4.14 on 7 October to the $3.10 mark at the point of writing, AEM share price (SGX: AWX) suffered a devastating meltdown of 25% within two weeks. The spellbinding collapse of AEM share price must have knocked the wind out of shell-shocked investors, sending shockwave to the local market.

To be frank, I am still processing what had happened to AEM share price. For the past two weeks, I have been asking myself if my investment thesis for AEM is still valid. As such, I am writing this article to pen down some of my thoughts. Hopefully, sanity will be restored for AEM share price in the coming weeks.

AEM share price

Troubles certainly came in troops for AEM share price. On 12 October, news reports surfaced that Intel is going to lay off workers amid steep decline for its core business – PC processors. The move by Intel to cut costs may be attributed to the upcoming third quarter financial result, which is likely to be dismal. If investors recall, Intel suffered a brutal US$500 million loss in the second quarter. The troubles faced by Intel rattled AEM share price as the latter derived the majority of its revenue from the US chip maker.

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SATS share price blew up in pieces

Lifetime Membership The featured company for this article is SATS Ltd. The last time that I covered the food solutions and gateway service provider was more than two years ago. Back then, the company was struggling to contain the fallout from the pandemic. Time files. In the blink of an eye, pandemic is quickly fading into distant memory as Singapore fully opens its borders. Recently, one of the members of SG Wealth Builder requested for my insights following the bizarre meltdown of SATS share price.

The recent collapse of SATS share price must have caught the attention of many investors as it came on the back of a strong recovery in travel demand. Like many aviation stocks such as SIA and SIAEC, SATS share price has recovered to about 80% of the pre-pandemic levels prior to the recent plunge. In fact, SATS share price had been in robust form as travel recovery led to an improvement in its business performance. And then out of nowhere, SATS share price suffered a devastating train-wreck.

SATS share price

On 28 September 2022, the market reacted violently to the announcement of the $1.755 billion acquisition of Worldwide Flight Services (WFS) Global Holdings. Consequently, all hell broke loose for SATS share price as short-selling volume swelled to a high of 25 million in the final week of September.

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DBS Group Holdings share price in Black October?

Lifetime Membership In stock market, October has a psychological effect on investors as some of the worst market crashes happened in this month – the stock market crashes of 1929 and 1987. If investors look back, Wall Street ripped the world apart with Dow Jones plunging by 832 points on 11 October 2018. Back then, Straits Times Index (STI) took the cue and fell by 84 points. Then in October 2020, Dow Jones collapsed by a whopping 2000 points. In this context, how will DBS Group Holdings share price unravel in October 2022?

Back in August 2022, I wrote that DBS Group Holdings share price could be in for a rough ride following the release of a set of new property cooling measures. True enough, the authorities did unleash a set of new cooling measures on 29 September 2022 to rein in the relentless rising property prices in Singapore.

DBS Group Holdings share price

In that article, I predicted that the loan-to-value (LTV) limit for bank loans would be lowered from 75% to 70%. Further, I was expecting the Additional Buyer Stamp Duty (ABSD) to be raised yet again. It turned out that the LTV limit for HDB loans and the Total Debt Servicing Ratio (TDSR) were tightened instead.

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ESR-LOGOS REIT (SGX: J91U) in whole new world!

Lifetime Membership This is my first article on ESR-LOGOS REIT (SGX: J91U) after the merger between ESR REIT and ALOG. Shares of the combined entities started trading from 5 May 2022 but the unit price had been dropping like flies. Year-to-date, the counter collapsed by a whopping 26%. With no end in sight, the falling unit price of ESR-LOGOS REIT is indeed disturbing for unitholders.

Unitholders from both ESR REIT and ALOG camps had been very supportive of the merger, with 98.4% of the former and 94.8% of the latter voting in favour of the merger. On this basis, the bearish form of ESR-LOGOS REIT is unlikely due to sell-offs by disgruntled unitholders. Rather, the decline in unit price of ESR-LOGOS REIT should be attributed to the challenging market conditions and the issuance of new units to fund the acquisition of ALOG units.

ESR-LOGOS REITThe total consideration for the merger was approximately $1.4 billion based on the scheme consideration of $0.95 for each ALOG unit. 1.6765 new ESR-REIT units were issued for each ALOG units, issued at $0.51.

It is not difficult to understand why unitholders had voted overwhelmingly for the merger. Post-merger, ESR-LOGOS REIT will ascend to one of the top ten largest S-REIT by market capitalization.

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7 reasons to join SG Wealth Builder Lifetime Membership

Lifetime Membership It seems like yesterday when I founded SG Wealth Builder. I can still remember the explosive passion and excitement when launching this wealth blog. Twelve years had passed and the energy remains amazingly strong. During this period, there had been a lot of twists and turns. Nevertheless, the brand of this blog grew from strength to strength. Over time, I have also developed a voice that connects with my readers. It is this distinctive voice that attracted readers to keep coming back to this blog and many had become long-time followers. Now, I would like to take this opportunity to explain why I had converted this blog into a membership site.

Value is what attracted readers and followers to SG Wealth Builder. Many people who visited my blog had provided numerous feedback that they had learned useful things that they were able to apply in their wealth building journey. Such compliments often invoked deep sense of self-satisfaction and achievement inside me.

SG Wealth Builder Lifetime

To be able to make a difference in others certainly create a profound feeling. Thus, the motivation to bring this relationship to another level. In this article, I am going to share 7 reasons to sign up SG Wealth Builder Membership.

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