Why the article today ? Well, CMT has a large spike of 11 cent today hitting $2.57. FCT has a good day too. This quickly bring CMT yield to-date to roughly 4.5%. If one could remember when I blogged about Yield Anchoring this could be what I am expecting of ever lower yield. Will the price go higher to the unknown since is at all time high or it will crash soon?
Took a look on the DPU and compute the yield from it. To hit $2.80 (arbitrary), CMT yield would drops to near 4%. Is this enough for "kiasi" me ? I will be happy compared to SSB or Bank Interests surely.
What is the chance that it will crash from $2.57 ? Well, DPU has to fall. Which mean Malls Business have to fall largely. Make sense to you now ? Will you buy more instead ?