High quality income producing shares.

23 March 2019

Dear Fellow Investor,

Why are Singapore REITs and some KLSE high dividend quality stocks performing ?  Why are value stocks with low growth stocks holding steady? Why are growth stocks under performing ?

Why is the utility stock index in the the US making new highs while the Dow Jones is struggling and the Swiss stock market continues to outperform most  markets in the world? 

 

Dow Jones World Utility Index.

The utility world index reflects the dynamics of investors shifting from high priced growth stocks into stocks with stable predictable income.  Its not the demand for water, power or electricity but the demand for income that is moving these stocks.

The same is true for Reits. The SGX S-Reits index of 20 Singapore reits is the best performing index in Singapore over the last year. Income from a well run reit is predictable and recurring. Property is a real asset while growth is a hope and in some cases a dream.

Switzerland is also a top performing market in 2018-2019 as the Swiss index is dominated by safe high quality dividend stocks.

Investors have been taking profits on their growth shares and the question is where do they place their cash ?

Dynamics of this capital shift:

Bonds/ money market funds are not the answer because rates they offer do not beat inflation.

The only thing left are high quality income producing shares.

 

After feedback from our members, we decided to have our first investors club meeting on Saturday April 13 at my office in Phillip Capital Mgt at 11 AM.

April 6 was not suitable as it is an important Chinese holiday the Ching Ming festival.

Do come if you are free and bring your questions. There is plenty of parking.

Let me know if you wish to attend. No charge.

Invest well and grow your wealth,
Bill

 

Critters of the week are a cat hiding from 2 Dobermans.