When the US Fed Reserve Chairman announced QE3, i'm still wondering what will happen in the financial world and how it will impact the markets.
Snyder, M (2012) says, "This time, the quantitative easing is going to be open-ended. The Fed is going to buy 40 billion dollars worth of mortgage-backed securities per month until they have decided that the economy is in good enough shape to stop."
Inflation rates will go up as the US floods the world with more money. Singapore, like other countries, have to protect itself by strengthening its currency. And it has to be well managed because if our currency becomes too strong, it will affect our export rates as our prices will become expensive for other countries to import our goods. Therefore, QE3 will still cause our inflation rates to rise, but probably at a slower rate.
In order to curb inflation, we can hold assets like properties, commodities and stocks which is not affected by export numbers.
Focusing on 3 REITS which i particularly like because of their presence in Singapore
Starhill Global - owner of Wisma Atria and Ngee Ann City retail and offices in Central
CapitalMall Trust - owner/leader of the malls located in different parts of Singapore located n Bugis, Sembawang, Orchard, Clark Quay, Jurong.
More info of its portfolio: http://www.capitamall.com/our_portfolio/portfolio_overview.html
CDL Hospitality Trust - owns Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King’s Hotel, Studio M Hotel, Novotel Singapore Clarke Quay.
Starhill Gobal yields about 7% for $0.75 per share
CapitalMall Trust - yields 5.7% for $1.985 per share
CDL HT - yields 5.4% for $1.965 per share
Reference List
Michael Snyder 2012, QE3: Helicopter Ben Bernanke Makes It Rain Money, viewed 18 September 2012
< http://world.hawaiinewsdaily.com/2012/09/qe3-helicopter-ben-bernanke-makes-it-rain-money/>
No comments:
Post a Comment