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Explaining Quantitative Easing & Its Effect On Commercial Banks

Explaining Quantitative Easing & Its Effect On Commercial Banks

Do You Know What The Effects Of Quantitative Easing Has On Commercial Banks?

Quantitative Easing: what's it all about? - Investor's Champion

This post was originally posted here. The writer, Kyith Ng is a veteran community member and blogger on InvestingNote, with a username known as @kyith and has 1095 followers.

Quantitative easing means to liquify the financial markets and the main economy, a lot of money was pumped into the financial system.

The straightforward deduction is that if you create money from out of nowhere, either your currency is going to shit or that inflation will run rampant.

We are not seeing both in the United States right now but a lot of the people are speculating it will be a matter of time.

I wonder whether that will really happen. I say this because I can’t say I am that competent to make that deduction. Usually, we have to know to a good extent what I am talking about to make that conclusion.

I do think that from what I hear, we have created an interconnected system that will create more than 2 standard deviations, 3 standard deviation volatility.

One of my favorite people on the financial blogosphere Cullen Roche of Pragmatic Capitalism explained that when the Federal Reserve infuses money, it is an exchange of very short-term liquid money with long-duration money/bonds.

In a way I understand it but if I cannot illustrate it out well, then maybe I do not understand it as well.

In any case, BCA has a good explanation about what happens when the Central Bank buys back commercial securities from the banks.

It sought to help to explain the relationship of Central banks with the monetary system.

I used to not get the relationship of Central Banks that well but the way to think about them is like the Bank of the financial institutions. They somewhat act as the lender of last resort.

If banks produce the lifeblood of the financial system, then they have to be functioning.

But what if the banks are not functioning?

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INTERVIEW WITH OUR TOP 10 FINALISTS OF SG’S ACTIVE TOURNAMENT

INTERVIEW WITH OUR TOP 10 FINALISTS OF SG’S ACTIVE TOURNAMENT

Interview with Top 10 of the Tournament Leaderboard: Yi Xiang

This post was originally posted here. This is Yi Xiang who is currently in the top 10 on the leaderboard, out of over 2,000 participants.

We did a quick lookup on his tournament portfolio here and he currently has a return of 18.6%!

We asked the questions that followed and this is what he had to say.

How many years have you been trading and which markets do you usually trade?
Yi Xiang: It has been 2 years since I started trading and I usually trade the U.S. markets.

What’s your profession?
Yi Xiang: I am currently an University Student.

How did you start trading and what got you started?
Yi Xiang: I first started my trading journey in SGX stocks.
I would say what got me started initially was my interest in Finance. I was serving my National Service back then and in my free time, I liked to read books on investing and trading. After gaining some knowledge, I decided to put what I learnt to real-life applications and that was how I got started.

So what’s your usual trading plan like?
Yi Xiang: I will study the charts of the stock(s) that I am looking to trade and determine the entry price, stop loss level, and take profit target. I usually will not meddle with my plan unless there are significant events/news that would impact the stock.
I will also read the news released the previous night and in the morning to keep myself updated on market happenings.

Then how do you usually determine entry for a particular trade?
Yi Xiang: For trading, I rely mostly on Technical Analysis and market sentiment. I will look at candlestick patterns, support & resistance, trendlines to determine the three price levels mentioned in the previous question. I will enter at or near support & resistance levels, re-test of trendlines, or after a certain candlestick pattern is formed.

How do you usually determine an exit for a particular trade?
Yi Xiang: I also base my exit based on Technical Analysis. As mentioned previously, I will exit at support/resistance levels, or when the price touches the trendline.
I might also exit if there has been a change in market sentiment due to reasons such as sudden news release.

Finally, what would you say to new participants & traders of this year’s tournament who want to trade well?
Yi Xiang: To trade well, you need to have a proven strategy. As this tournament is using virtual capital, it is a really good chance for aspiring traders to test out their strategies without the risk of losing your own hard-earning capital.

So I hope that through this tournament, participants would be able to find strategies that suit them. Also, I hope everyone will learn more about DLCs through this tournament and hopefully be able to incorporate DLCs in their real trading.

Finally, I would like to wish everyone good luck in the tournament and enjoy the trading process!

Also, join us LIVE for a market outlook and insights with our trading champions next Wednesday here!

Become a part of our community and also see what other investors are saying about the current market right now: (click on the view now button)

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InvestingNote is the first and largest social network for investors in Singapore. Find out more about us here.

Download our free app here:

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Also, join our telegram channel here: t.me/investingnoteofficial

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Mapletree Commercial Trust’s Q2 and 1H FY2020/21 Results – Key Highlights and My Thoughts

Mapletree Commercial Trust’s Q2 and 1H FY2020/21 Results – Key Highlights and My Thoughts

Highlights of MapleTree Commercial Trust Results

3 Things You Need to Know About Mapletree Commercial Trust Before You Buy

This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has 1412 followers.

Mapletree Commercial Trust, out of the other REITs, released its latest results in the evening (its results are for the second quarter and first half of the financial year 2020/21 – it has a year-end every 31 March.) Hence, yesterday was certainly busy for me, where 3 REITs in my long-term investment portfolio (you can check out a list of all the companies I have invested in here) released their latest financial results for the quarter ended 30 September 2020 – CapitaLand Mall Trust (for the third quarter, which you can check out here), and Suntec REIT (also for the third quarter, which you can read here) before market hours.

In my post today, I will be sharing key aspects you need to know about the REIT’s latest update – particularly its financial performance, debt, and portfolio occupancy profile, along with its distribution per unit. On top of that, you will also find my personal thoughts about the blue-chip REIT’s latest set of results peppered throughout the post.

Let’s get started…

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New Subscription Launch: The TAP Method: An Analyst’s Essentials

New Subscription Launch: The TAP Method: An Analyst’s Essentials

It’s currently earnings season for many US companies which this subscription providers have been monitoring. (scroll down to understand more)

The TAP Method: An Analyst’s Essentials is a new subscription service, released by Trading Analyst Playbook (TAP) in the midst of a currently volatile market, catering to those of us who recognise the enormous potential of the US market and want to take full advantage of it even in roller-coaster periods.

 

Here are some recent case studies:

Here are 2 Trade Alerts that were sent to Tappers in the past few months. As predicted, the returns were remarkable! Have a look for yourself:

Case Study 1: Tesla Inc ($TSLA)

Trade Alert sent to Tappers on 12 August 2020. With their Trend-Following Approach, this trade has yielded 62% (Best Price) within 16 Trading Days.

Case Study 2: Beyond Meat ($BYND)

Trade Alert sent to Tappers on 30 August 2020. This trade yielded 30% (Best Price) within 30 Trading Days. TAP also shared possible fundamental factors that might drive it higher.

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CapitaLand Mall Trust’s Q3 and 9M FY2020 Results – A Summary and My Thoughts

CapitaLand Mall Trust’s Q3 and 9M FY2020 Results – A Summary and My Thoughts

REIT CapitaLand Mall Trust (SGX:C38U) released its 3Q results, as well as for the first 9-months of the financial year 2020 (ended 30 September) early this morning.

CapitaLand sells Bedok Mall to CapitaLand Mall Trust

The post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has 1412 followers.

This is also the last time the REIT will be reporting its results under CapitaLand Mall Trust – it will be renamed as CapitaLand Integrated Commercial Trust with effect from 03 November 2020 (you can read the news report about this in full here.)

Apart from its financial results, debt and occupancy profile, and distribution payout to unitholders, I’m also interested to find out whether or not there are any improvements compared to the second quarter (ended 30 June 2020) where its results were badly affected due to the two-month circuit breaker period.

Let’s begin…

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3 Dividend Stocks With Quarterly Payouts

3 Dividend Stocks With Quarterly Payouts

What are some dividend stocks ideas?

Top 10 Highest Monthly Dividend Stocks to Invest In

This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with a username known as @Smallcapasia and has 909 followers.

We have researched hard and have found 3 dividend stocks that pay dividends every quarter that you should know. If anything, the pandemic has taught us lots of things not only in terms of health but also in terms of finances. A conventional 6 months of expenses in emergency savings are not working out anymore.

Many unfortunate people are facing retrenchment or pay cut since March, and that has been more than 6 months ago.

Monitoring our cash flow is extremely important for retail investors like us. Receiving consistent and high-frequency dividends are one way to tide us through this tough time.

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7 Things About Support and Resistance That Nobody Tells You

7 Things About Support and Resistance That Nobody Tells You

How well do you know how to utilise support and resistance for trading?

A Guide to Support and Resistance Trading

This post was originally posted here. The writer, Rayner is a veteran community member and blogger on InvestingNote, with a username known as @Rayner and has 605 followers.

Here’s a quick quiz for you about Support and Resistance…

The more times support and resistance is tested (within a short period of time), the stronger it becomes. (True / False)

You should set your stop loss below support and above resistance so you don’t get stopped out easily. (True / False)

You want to buy near support because it offers a favorable risk to reward on your trade. (True / False)

Do you want to know the answers to these questions?

Then read on…

If you read most trading textbooks, they’ll tell you that the more times support and resistance are tested, the stronger they become.

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Upcoming Webinar: Market Outlook 4Q2020 & Trading Insights from Tournament Champions

Upcoming Webinar: Market Outlook 4Q2020 & Trading Insights from Tournament Champions

 Join us for this LIVE and exclusive webinar where we have special guests talking about the Market Outlook for the last quarter of 2020!

SGATT 2020 Prize Ceremony
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Special guests include: SGX Market Strategist Geoff Howie, Desmond Leong, CEO of Everest Fortune Group and Alvin Li, Vice President at Societe Generale.
 
Tournament Winners from the annual SG Active Trading Tournament will also be giving their Trading Insights. Hear from them on what tips & strategies they used to trade to beat 2,000 other participants!
 
Register Now!
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Become a part of our community and also see what other investors are saying about the current market right now: (click on the view now button)
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InvestingNote is the first and largest social network for investors in Singapore. Find out more about us here.

Download our free app here:

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Also, join our telegram channel here: t.me/investingnoteofficial

We’re here to keep you in touch with the latest investing & stock-related news, happenings, and updates!

GOOD WEEK for iFast – Paying Tribute To Lim Chung Chun

GOOD WEEK for iFast – Paying Tribute To Lim Chung Chun

This will be another GOOD WEEK for iFast.

iFast leads Chinese partners with bid for Singapore digital wholesale bank licence, Banking News & Top Stories - The Straits Times

This post was originally posted here. The writer, Swee Swee Lai is a veteran community member and blogger on InvestingNote, with a username known as @Sweeswee and has 315 followers.

I would like to pay tribute to Lim Chung Chun (Lim CC), CEO of iFAST Corporation.

Lim CC: “You need to PUT YOUR MONEY where your CONVICTION is, and iFast is a stock that I know better than anybody else in the world and is within my control to ENSURE its SUCCESS”.

1. He is an engineer by training but built a career in investment research in the 1990s which culminated in a Head of Research position in a foreign financial institution. He could have just stay content with this high paying, cushy job. But he decided to step out of his comfort zone and become an entrepreneur, in the aftermath of the Asian Financial Crisis. Perhaps those PMETs who have been retrenched now can be inspired by him to become an entrepreneur.

2. iFast has been in business for more than 20 years, during which it has overcome several crises and emerged stronger each time: dotcom bust (2000), SARS (2003), Global Financial Crisis (2008), and Covid-19 (2020). This shows that the iFast business model and its management team have proven track record in navigating crises and business cycles. Several of its key management staff have been with the company since the beginning. I heard the office culture is good and Lim is a good boss.

3. True to the entrepreneurial spirit, he put in the bulk of his personal wealth into the business, even during difficult times. He demonstrated strong conviction and commitment. From that, he also attracted genuine investors who believed and supported him especially during tough times. True to his investment philosophy, he builds the business for the long term.

4. iFast started only as an online distributor of funds, unit trusts in Singapore. But it gradually expanded its products and services, as well as geographically into 5 other countries. That’s why if iFast wins the digital banking license, it opens up a lot more opportunities for it to expand into related products and services. It is the network effect of the new economy. He also wants iFast to run a truly “GLOBAL BUSINESS MODEL”.

This is a great interview conducted in Jun 2020:
https://zuuonline.sg/business/c-suite/leading-the-evolution-of-a-finte…

We ought to support, respect, and celebrate the success of our homegrown entrepreneurs like Lim CC. The other person is Tan Ming Liang of Razer Inc. He quit his lawyer profession to start Razer Inc, which has a market cap of about S$3.27 billion now.

Lim CC is on the way to building a multi-billion market cap company.
People like them are well educated but not scholarly type. No need to work for others. No need to be helicoptered into a top post in a big organization.
They take the risk and create scalable, forward-looking businesses which in turn generate many jobs for others. They deserve to be extremely successful. Next could be Grab and Carousell.

So, MAS:

There is every reason for you to award iFast a wholesale digital banking license.
It will do SINGAPORE proud!

Once again, this article is a guest post and was originally posted on Swee Swees profile on InvestingNote.

Become a part of our community and also see what other investors are saying about the current market right now: (click on the view now button)

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InvestingNote is the first and largest social network for investors in Singapore. Find out more about us here.

Download our free app here:

apple android

Also, join our telegram channel here: t.me/investingnoteofficial

We’re here to keep you in touch with the latest investing & stock-related news, happenings, and updates!

Liquidity and Network Flywheel Causes Multiplier Effect On Business and Shares Valuation

Liquidity and Network Flywheel Causes Multiplier Effect On Business and Shares Valuation

The liquidity and Network Flywheel effect is key to unlock business growth and expansion.The Data Flywheel: How Enlightened Self-Interest Drives Data Network Effects

This post was originally posted here. The writer, Brian Halim is a veteran community member and blogger on InvestingNote, with a username known as @3Fs and has 2259 followers.

One of the most important elements of a tech platform business model is the ability to create multiple expansion network effects, using the Network Flywheel concept.

A network effect is often described in economics and businesses as one of the key pillars of success as it depicts a contagion behavior of one additional usage of products or services that will have on the next users. This creates a long-lasting effect and an increasing value of a customer’s lifetime value, which is one of the key unit economic metrics for a business.

The Internet is clearly the easiest example of the network effect, where everything in our daily activities flows through the web channel.

Let’s take a look in more detail by using a private ride-hailing network, Grab as an example.

Grab started out as a ride-hailing platform where it aims to create a large pool network of supply and demand in each market so they can have what is called the network liquidity flywheel as depicted in the graph I created above.

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