SG Wealth Builder

As the year-end festive season approaches, investors of Singapore Airlines (SIA) have little to cheer about as SIA share price plunged to epic low of $9.17 on 30 October 2018. The last times that SIA share price was traded at such abysmal level were during the 2001’s terrorist attacks in United States and 2003’s SARS outbreak. Both events were black swan events that affected the industry immensely and changed the aviation landscape forever. But hey we are not having any crisis now, aren’t we?

As one of the major components among the prestigious Straits Times Index (STI), SIA is one of the biggest blue chips in the stock market. But investing in this leading light of SGX is not so straightforward as challenging operating environment and industry shifts make this stock highly unpredictable.

Given that SIA is the pride of our nation, can investors really sleep well with its stock? Are there any dark forces behind the recent meltdown of SIA share price? In this article, I will share my insights on the prospects for SIA share price and also explain why the ROE has always been terribly low.

Big boys fled SIA shares?

A review of market data on …

On 4 December 2018, Dow Jones crashed 800 points due to concerns over the intriguing trade wars between United States and China. The devastating decline in Dow Jones wiped off billion of dollars from the stock market as investors ran for their lives. Evidently, the spectre of a recession looms large, casting a dark shadow on Wall Street as investors are not convinced of the trade tariffs ceasefire.

The latest stock market rout came as Dow Jones emerged from a black October in 2018 which saw Dow Jones plummeted from 26,800 to 24,400. The massive decline of Dow Jones must have freaked out investors new to the game. But then again, it is important to note that Dow Jones had one of the longest bull runs in stock market history, surging from 7,000 points in 2009 to a high of 26,600 in January 2018.

Obviously, what goes up must come down. Investors must brace themselves for such corrections and avoid making rash moves that could result in losses. Indeed, it turns out that 2018 is a year of revelation as Dow Jones had experienced serious bouts of corrections.

On 5 February 2018, US Dow Jones plunged nearly 1,200 points, the …

Is this the best window of opportunity to enter First REIT? The unit price of the health-care service provider had taken a severe knock after crashing 16% from 15 to 20 November 2018. Such devastating decline is unheard of among S-REITs and perhaps, illustrated a strange dark chapter for First REIT.

For sure, First REIT is widely regarded as one of the most established S-REITs and possesses a proven track record of solid distributions. First REIT was listed on the SGX mainboard on 11 December 2006. Since IPO, the unit price of First REIT had experienced an explosive bull run, surging from an IPO price of $0.53 to a peak of $1.47 in 2015.

Even with the recent correction, long-term investors should be laughing all the way to the bank because of the mighty unit price appreciation and the long history of distributions paid out.

Notwithstanding the above, many investors should be having difficulty sleeping well at night as unfolding events threaten to derail the growth prospects for First REIT. Out of nowhere, First REIT unit price suffered an unexpected train wreck. Should investors start running for their lives? Or should investors stay put and hope for a windfall from …