We thought it is cheap now and we added some again into our portfolio. Even if you factor a 25 basis point interest rate decrease. With also projecting loan growth of 5 to 10%. The likely result is lower grow in revenue and margin. But now below PE of 10 times. ROE will easily surpass 20 to 30% total gain. I think it is a good buy from now.
Overall confidence in 2018 turned negative for me. I am not looking for a crash but an overall slowdown looks unavoidable. As the current stagnant prolonged will face impact of short to mid slow down.
As for equities, from this point on we will shift to highly defensive with yield. We will still buying as reinvestment.
Overall stock and property will be see saw in trading during this stagnation period. It is not stagflation as we believe overall market will stay quiet and trading within range.
Overall slowdown is because of impacts from worldwide economy. However also some new policies by the local government will continue to affect short to mid term performance of both markets.
Especially the property market. We believe a switch into rental oriental market is already happening. Some leading industrial property portal like Estate123.com launched Landlord123 seen as activites bias towards capturing the market of rental in this period.
We will continue to stay invested but will focus into undervalued and yield oriented always.
Imagine a designer can transfer large data files in second. Is the office still in need? Or I should say of anything that can transmit over 5G easily will be impacted. Because 4G already reshaped the market in such a huge degree. 5G is 10 times faster.