Hi ,

Here's Invest With Pete weekly update for Feb 07, 2022...

Stock Market

The stock market has rolled into full earnings season.

There are some winners some losers

Winners: Alphabet, Amazon, Pinterest, Unity

Losers: Facebook, Spotify, Skechers

The market is filled with uncertainties regarding the Fed rate hikes and stopping of QE.

Jeremy Grantham went on TV again to talk about his super bubble theory.

First and foremost, I have tonnes of respect for Jeremy. He is perhaps the most consistent guy I know. And he is the guy who predicted the Dot.com bubble and the 2008 bubble! Twice in row!

However, calling bubble doesn't guarantee returns. As you can see his portfolio returns below over the last 10 years has been way lower than the S&P500 and the Emerging market index.

So what is Pete's view?

My take is that the market is still relatively strong, given that job opportunities are abound and it seems that we have reached peak inflation.

Furthermore, stock market has traditionally done well in the following year after rate hikes so as investors, we should welcome rate hikes.

As for investing style, I think Jeremy's style of binary investing. Either you are in or out, is very hard to do in practise!

If you sell out now, fearing a recession. You will feel like a fool when the market roar higher.

If you buy in now, thinking the market has bottom. You will feel like a fool when the market crash another 15%.

I think most investors will do better by staying invested throughout and dollar cost average into the market.

Yes, while the market has stagnant returns for extended period of times such as 2000 and 2008, I think it is a folly to think that you can predict the occurrence of such event accurately. (even for Jeremy Grantham)

My method is stay invested, on the side raise more cash and buy in more during lower prices. Keep it simple!

As for individual companies, I did some analysis on Facebook and highlighted my concerns about it below.

🎥 Facebook Drop 20% on Earnings! | Buy or Sell?

Click here to watch the video

As for market trend, I also shared my view on when I think the market bottom is here or not.

🎥 When Will The Market Bottom? | Chart by Chart

Click here to watch the video

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Property Market

Property market continues to climb higher as we speak. Both in terms of rent and prices.

With the increase in ABSD, we are also noticing more interest in commercial properties as these do not attract ABSD. However, there are usually higher in quantum hence only the big players are coming in but they are big in transaction volume.

Also there are also increasing interest on shophouses as these are more flexible in change of use and can be switched between commercial or residential. I do notice some owners switching the usage to fully commercial. Yes you guess it! To avoid ABSD.

Also the official figures for 2021 just came in! 

Sales Prices

HDB 🔼 12.5%

Private condo 🔼 10.6%

Landed 🔼 13.3%

Rental Prices

HDB 🔼 10.4%

Private property 🔼 9.9%

Pete’s Prediction: 🔮🔮

HDB price growth to slow down and stabilise with the deluge of new BTO and MOPs in the next 3 years. 

Private property price growth to continue or even accelerate with the demand increasing and dwindling supply. 

New condo developers continue to raise prices despite cooling measures and new launches are selling well still. This clearly shows the demand for private housing.

Congrats to all IWP members who attended our 1-on-1 consultations and took action! Now, just sit back and wait for the time to sell 🤗

✅✅If you haven't taken action, it is still not too late! Apply at bit.ly/propertywithpete now.

Due to the time and effort required, I am planning to charge a consultation fee soon. So do get on the 1-on-1 soon 🤗🤗

Enjoy, Pete Tan