Mapletree Industrial Trust performs below expectation, this is despite the CEO gives a credible AGM which shareholders reacted positively. The only thing is that I do not think they have the DCs Hyperscale blood in them. Don't get me wrong, is still a very large and stable reit but long term assuming no macro tide, the reit seems on a long term slope. It still provide a strong stability to the portfolio but allocation wise we may need to tweet a little to prevent long term drag. Who knows she may perform surprise turnaround.
And then Fed decided to continue to delay the cut further. This make Trump angry. Personally, I am quite neutral. Fed mandate is 2% so we aren't there yet. There is stull some way to go. US economy is still strong and S&P500 still on the upper brink. Unemployment is not bad either. So he aren't wrong not to cut. BUT at this high rate, property loan is quite expensive. This will put a large dent on home owners and a cost on national debts and many SME businesses.
I am not a fan that we should lower rate so as to pay investors lesser for treasury. This going to destroy the market mechanism. Strength of the USD should not be manipulated in a way to purposely lower investor returns who may vote with their pocket. It should be based on factors that are built-in to the system today which is inflation, employment and strength of the USD. Maybe more, I aren't Expert.
The decision has ramification on Singapore Reits. Another blow on recovery. And gain my decision to focus on Reits with moat that able to raise prices to combat cost of business.
Meta, Msft and Aapl report great results. Amazon too except there are other concerns. In net, US segment bring the portfolio value up another level. I like my peanut butter strategy on Big Techs because I do away with a lot of deep inside knowledge or industry to make investment decision. As long I hold long enough, they will ride through the waves. Well, this also mean market will find a reason for broad based sell down like yesterday for reason like employment number is not high enough. What a lousy reason but market has to find a reason to manage the recent run up.
Job Data
The Job Data is down significantly again give a wrong picture on how rates are to be managed. US data collection method needs to improve or maybe more integrity needed before the market totally ignore it in the future. Is better to have roughly good data than wild data which then got revised significantly months later. I would say they need a total revamp. Due to the revision, the US Market has been driven down now. I wonder what will Powell says now being data centric driven. Trump won't happy at all even though this help his cause for lower rate.
As of today XIRR 9.5%. The portfolio has more defensive position, lower bank allocation, higher big tech positions, more other category expansion, and some cash. Feeling ready for any crash or correction if it comes.
Interesting Time ! National Day Coming.
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Disclaimer: The articles presented in this blog reflect personal opinions and are intended for informational and sharing purposes only. Not responsible of errors. Readers are advised to seek professional guidance when making financial decisions and should take full responsibility for their choices.
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