The recent slump of stocks have me rolling on the floor laughing. The fifth person have an article written on this. It was also quite fun seeing friends' post, that they have gone sick from the falling stock prices. Today, stocks have almost recovered from their earlier week fall. So what really happened? Absolutely nothing!
Here, in Apexproperty, we believe in assets where you have full control and at least, you have control over its price to sell, its cash dividend you want, only then... its an investment, only then its a business. When you buy into a stock, say Starhub, yes, its a fantastic cashflow company with its own economic moats and all but when it comes to controlling the business when it goes down, say you have a brilliant idea to improve revenue, can you? Also, when the management wants to do something, i.e., issue rights, can you?
If you look at great blue chip companies such as telcos, and you say, hey, the NAV, the Valuation and the cashflow is such and such, therefore the investors are willing to trade security with lower yield and lower growth, which is fine. If you look at property as a business, you will find similar valuations and similar yield points. So, I would rate such 'small business' of a buy to let property to a huge business such as telcos with the exception, I have full control. I have no fear of stocks rise and stocks fall. (experienced investors, sorry, I don't mean you, you would continue to accumulate and while I can't)
Without subjecting myself to the market whims and fancy, I definitely sleep better and was having so much fun reading "predictions" from economists.
Hey, fear sells... and stock market is a casino. Cheers!