One thing i have learnt about income and networth.. While it is easy to say how much xxx income is being derived from xxx assets , it is not easy to see the leverage that the person has taken to derive that income .
Part of analysing this equation can be applied to companies and especially REITS.. and the risk/reward may not be so rosy after factoring the leverage effect that has been taken.
What is the problem with leverage ?
Well, nothing .... if you based on nearly 10 years of QE easing ... In fact , it has been a ultimate tool to growth wealth over profitable and even marginally profitable assets . Hence back to me talking to myself that the past cannot predict the future.
But with the Fed hike starting and with further hike looming in the horizon... we may see a new change...
I dont think we will see growth like we used to in the next 10 years. Bets on STI index strategies , rental etc will no longer always be winners. It is going to be all hard work now to identify gems in the rubble. If you cant put the time in for the hardwork, then u will be better off with
CPF investing.
Quote:
Originally Posted by lazyplane
Am heading 50 soon. All i can say I wish the past can always predict the future... I think the 40s have to work harder than i did as SG market levers are more max out compared to then. We could do property (clear investing strategy) but now, i am not so sure. rental yields are poor, and prices are not too realistic. Rental yields r better overseas but the risk is also higher. (ie fx risk, regulation risk etc)
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