Market Correction Ending Yet? | Invest With Pete Weekly Update
Feb 22, 2022 3:53 am
Hi there,
Here's Invest With Pete weekly update for Feb 22, 2022...
Stock Market
Monday is a public holiday for US so today is the first trading day.
Market correction is still underway. As mentioned in last week's update, I am still staying invested and raising more cash on the side in preparation to buy at lower prices.
To give a perspective, for this year to date
NASDAQ is down 13.4%
SP500 is down 8.7%
DJI is down 6.2%
As you can see the tech industry is leading the correction after it has climbed to new highs in 2021. While this is not unexpected, it is also not easy to stomach. Therefore, it is always important to remember that the market is a temperament creature. We should strive to control it, instead of it controlling us.
As for this week, we are seeing some exciting earnings.
Alibaba ; Square (Block); Coinbase; Etsy; Mercardolibre
It is important to remember that earnings should be used to access the business quality and not use to judge the near term price movement.
It is quite tough to do in practise but all investors should try to separate market movement and business quality. One is short lived and one is long term. Hope that you understand which is which!
My plan is to continue to research for great business to invest in and take advantage of lower prices whenever it comes!
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Property Market
Just when we thought that the government is done with cooling measures, they hit the market with higher property tax.
This round of increased property tax is mainly targetted at larger condos and landed properties. It is also targeting investment properties too.
Watch the video below to understand the impact of this new property tax. I summarise the gist of the 2 hour speech into 5mins.
TLDR: My view is that it will have very little impact on prices as most private properties and HDB are not affected or affected minimally.
🎥 Impact of New Property Tax | Singapore Budget 2022
Property Market in January 2022
New launch sales continue to trend higher at 3.5% m-o-m, despite only two new launches in January. This shows that more units in previous launches are selling well as their prices prove to be better value compared to upcoming launches.
Best selling projects in January is Normanton Park (which is one of my top choice back in 2021 and I think likely going to 2022 too)
Interestingly, luxury projects like Canninghill Piers, Belgravia Ace and Leedon Green are selling well too. This shows that strong demand for luxury real estate and this generally bodes well for the property market, because luxury projects tend to lead the market regardless up or downtrend.
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 profit 🤗
✅✅ If you haven't taken action, it is still not too late! Apply now
Crypto Market
I also did two videos to share my latest crypto yielding strategies. I won't spoil the fun here. If you are big in earning yield, then watch the videos below :)
🎥 I Spent $50,000 on This Card | Crypto.com Visa Card Review
🎥 How to get 12.73% Interest on Your Crypto Investment? | Pete's Best Crypto Strategy for 2022
Enjoy, Pete Tan