The Perfect Storm of the Stock Market II

[Throttle2]

20 minutes ago, Voodooman said:

If inflation really picks up and interest rate follows, i have to follow sifu to Bedok Reservoir. 😂

I trust you are much better prepared than that lah.  
 

😂

[Enye]

33 minutes ago, Voodooman said:

If inflation really picks up and interest rate follows, i have to follow sifu to Bedok Reservoir. 😂

nevertheless i will have to jump first

since you got your areit 1 day after me probably with a 2-3 bids safety buffer

😬😅

[Sdf4786k]

1 hour ago, Voodooman said:

If inflation really picks up and interest rate follows, i have to follow sifu to Bedok Reservoir. 😂

In layman terms, when interest rate hike, whats the impact ?

Everything more expensive and those high loans need to cough more money ?

[Throttle2]

Well it all depends on how things are managed and juggled  Too many variables so too many outcomes for different people.

The more geared they are, the harder is becomes.  Same for businesses
with decent income, good spending / saving habits, life goes on, otherwise it breaks down.

take a very simplified example where household of two adults and 2 schooling kids below 16.

parents who are employees have decent $20k take home income. Mortgage $5000 car $2000, other expenses including food and utilities another $8000. Totaling $15k. Savings of $5kpm. If businesses stay afloat, jobs are kept, income is maintained, its ok.  One job in the household is lost and income is halved, savings will need to be used.   Question is for how long?   We live in an ecosystem where everything has a knock on effect on everything, not different from a natural foodchain.  The multiplying effect works both ways in expansion and shrinkage.

The golden rule remains that you harvest reap and gather in spring to ensure you survive the winter. Never the other way around.

thats why i always have been advocating that we should be the ant and not the grasshopper.

however, i see many people do the opposite, probably becos we have had a good last ten years. Anyhow, i have no empathy nor sympathy for these. 
 

To the very rich, its just a number, to the not so rich, its some discomfort and change, to the poor, its survival.

Always have bullets, or a sitting duck, you become

 

[Wt_know]

in the last 5 years, youtube has created a new wave of "investors" ... no 10x no talk ...  

risk vs reward ... go big or go home bedok reservoir ... 

Edited May 13, 2021 by Wt_know

[Showster]

2 hours ago, Sdf4786k said:

In layman terms, when interest rate hike, whats the impact ?

Everything more expensive and those high loans need to cough more money ?

Actually everything must become much more expensive (inflationary pressure) then the interest rate can rise.

You can also read it as a boom time for people to exit specific markets.

That’s why some people expecting Cooling measures to slow down the rise, but this has to be carefully planned and calibrated. If prices go sky high, nobody really benefits. Muthu rules.

 

[Showster]

10 minutes ago, Throttle2 said:

Well it all depends on how things are managed and juggled  Too many variables so too many outcomes for different people.

The more geared they are, the harder is becomes.  Same for businesses
with decent income, good spending / saving habits, life goes on, otherwise it breaks down.

take a very simplified example where household of two adults and 2 schooling kids below 16.

parents who are employees have decent $20k take home income. Mortgage $5000 car $2000, other expenses including food and utilities another $8000. Totaling $15k. Savings of $5kpm. If businesses stay afloat, jobs are kept, income is maintained, its ok.  One job in the household is lost and income is halved, savings will need to be used.   Question is for how long?   We live in an ecosystem where everything has a knock on effect on everything, not different from a natural foodchain.  The multiplying effect works both ways in expansion and shrinkage.

The golden rule remains that you harvest reap and gather in spring to ensure you survive the winter. Never the other way around.

thats why i always have been advocating that we should be the ant and not the grasshopper.

however, i see many people do the opposite, probably becos we have had a good last ten years. Anyhow, i have no empathy nor sympathy for these. 
 

To the very rich, its just a number, to the not so rich, its some discomfort and change, to the poor, its survival.

Always have bullets, or a sitting duck, you become

 

You are the ultimate grasshopper while we all are the worker ants leh bro!

Main job notwithstanding, there is also much periodic work managing tenants, agents etc as a landlord. It’s not a walk in the park. In totality, we work throughout the year!

We the worker ants take umbrage!

 

Edited May 13, 2021 by Showster

[Wt_know]

9 minutes ago, Showster said:

You are the ultimate grasshopper while we all are the worker ants leh bro!

We the worker ants take umbrage!

a blue whale ikan kuning?

Edited May 13, 2021 by Wt_know

[Throttle2]

3 hours ago, Enye said:

nevertheless i will have to jump first

since you got your areit 1 day after me probably with a 2-3 bids safety buffer

😬😅

You jump simi😂

everything you buy at lowball price , everyone jump already you still fishing by the reservoir lah

[Wt_know]

2 minutes ago, Throttle2 said:

You jump simi😂

everything you buy at lowball price , everyone jump already you still fishing by the reservoir lah

sifu had collected enough fishing rods and baits to fish in bedok for a longggg time ... hehe

Edited May 13, 2021 by Wt_know

[Voodooman]

4 hours ago, Enye said:

nevertheless i will have to jump first

since you got your areit 1 day after me probably with a 2-3 bids safety buffer

😬😅

You jump I jump. 

[Voodooman]

3 hours ago, Sdf4786k said:

In layman terms, when interest rate hike, whats the impact ?

Everything more expensive and those high loans need to cough more money ?

Within the context of my earlier post, A REIT price will likely drop with rising interest rate (if increase is substantial), to maintain the gap between risk free rate and the yield.

For economic 101, T2 has explained. 

[Jamesc]

On 5/11/2021 at 9:06 AM, Albeniz said:

Wah.  Today my kimly coffeeshop huat ah.  Got dividend somemore.

Just wait till 1 Kg of sugar goes up by 10 cents.

Then every cup of coffee goes up by 10 cents.

As if every cup of coffee uses 1 Kg of sugar.

Then your dividends will really take off.

Good move.

[Newbie26]

@Throttle2 

many thanks Bro

for highlighting the difference between the ant & the grasshopper

 

[Throttle2]

3 hours ago, Wt_know said:

in the last 5 years, youtube has created a new wave of "investors" ... no 10x no talk ...  

risk vs reward ... go big or go home bedok reservoir ... 

Yah, just buy Tesla lah, Chicken? 🤣

 

[Vegas]

3 hours ago, Throttle2 said:

 

take a very simplified example where household of two adults and 2 schooling kids below 16.

parents who are employees have decent $20k take home income. Mortgage $5000 car $2000, other expenses including food and utilities another $8000. Totaling $15k. Savings of $5kpm. If businesses stay afloat, jobs are kept, income is maintained, its ok.  One job in the household is lost and income is halved, savings will need to be used.   Question is for how long?   We live in an ecosystem where everything has a knock on effect on everything, not different from a natural foodchain.  The multiplying effect works both ways in expansion and shrinkage.

 

 

wah the above, i think 80% of SG folks dun have....

i cfm dun have

[Throttle2]

5 minutes ago, Vegas said:

wah the above, i think 80% of SG folks dun have....

i cfm dun have

I mean, thats just an example.  The number could be anything.
if dont have $20k maybe say $15k, mortgage $3k, car $1k, others $6k , remainder $5k still the same savings but with less luxury. 
in fact will probably survive better becos savings proportion is higher.  

i said this before and i’ll say it again. $5kpm is the poor of today

Edited May 13, 2021 by Throttle2

[Showster]

9 hours ago, Throttle2 said:

I mean, thats just an example.  The number could be anything.
if dont have $20k maybe say $15k, mortgage $3k, car $1k, others $6k , remainder $5k still the same savings but with less luxury. 
in fact will probably survive better becos savings proportion is higher.  

i said this before and i’ll say it again. $5kpm is the poor of today

If total mortgage is 5k and the total rent collected is 10k, can do or not?