A BRIEF INITIATION OF RECENT TARDE WAR:

2018 China-United States trade war refers to tariffs and counter-tariffs between the U.S. and China. On 6 July 2018 U.S. President Donald Trump imposed tariffs putting a 25 percent border tax on $34 billion worth of the total China exports to the United States. Which then affected China to respond with similarly sized tariffs on U.S. products.

However, the list was cut down to 818 product categories worth US$32 billion in exports. The second tranche of 284 goods, valued at US$16 billion, bringing the total closer to US$50 billion, will be targeted after an additional process of review. Beijing would hit back with tariffs on nearly US$30 billion in US goods. To get more knowledge about Stocks Market News Today.

Former Malaysian Prime Minister, Najib Razak, was arrested on Tuesday. He was taken to the Malaysian Anti-Corruption Commission (MACC) headquarters in Putrajaya. MACC’s investigation is focused on how RM42 million (US$10.6 million) went from SRC International into his bank account. SRC International was created in 2011 by Najib’s government to pursue overseas investments in energy resources.

1MDB, founded by Najib in 2009, is currently being investigated in at least six countries which for claimed money fraud and laundering. Civil actions filed by the US Department of Justice mention that nearly US$4.5 billion from 1MDB had been cleaned. Furthermore, on Monday, the 1MDB special task force, that was set up for this case, announced that more than 400 bank accounts involving RM1.1 billion of funds from individuals, political parties and other non-government organizations were frozen. Get free Stocks Picks here.

A new S$80 million passenger terminal will open at Seletar Airport in December this year. This will provide additional free space for Singapore’s private and business jet traffic, at Changi Airport. The new facility is six times bigger than the current terminal and is designed to handle up to 700,000 passengers a year. The departure area will have four check-in counters, six entrance ways, two security screening stations and one gate hold room with a 200-passenger capacity.

Monetary Authority of Singapore chief, Ravi Menon, said that GDP in Singapore is expected to grow by 2.5 to 3.5% in 2018, unchanged from an earlier official forecast released in May. A two-sided trade war between the United States and China indirectly contributes about 1.1% of Singapore’s GDP. Flows between the US and European Union add another 0.5%, while trade between the US, Canada, and Mexico contribute 0.6%.

Finally,  Singapore dollar lending stood at S$668 billion in May, 0.1% up from April. The pace of growth was slower than April’s 0.8% increase, due largely to a slower growth in business loans. Business lending crawled up 0.1% in May compared to 1.2% in April. Consumer lending in May increased 0.1% to S$265 billion, while in April, the increase was 0.3%. On a yearly basis, bank lending in May rose 5.5%.

LONG TERM INVESTING CONCEPT BY WARREN BUFFETT;

I start with Buffett’s well-known saying: “Successful investing takes time, discipline and patience. No matter how great the talent or effort, some things just take time." 

                                                  

Warren Buffett is probably one of the best investors in the world.  One of the key reason for Buffett's incredible return in the stock market is his Patience. He is well-known for holding his stocks for the long-term. In fact, his favorite holding period in stocks is “forever”.  Stock Tips

From 1965 to 2017, annual returns of around 19% for his company’s shareholders was generated by Buffett. If you had invested just $1,000 in his firm, you would be sitting on a cool $8.9 million by 2017.

Yes, Buffett has sold shares often, but it is the thinking behind his quote that matters. If you have a long time horizon when investing, you will focus on the things that matter (hint: stock prices are not one of them) and will not bother with the things that don’t. STOCK INVESTMENT

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For any business to do well, it requires a considerable amount of time. By focusing on the long-term, we are forced to think about the quality and fundamentals of the company we are investing in. If we have an “investing” time frame of just one month, we would only be looking at stock price fluctuations alone, and it turns the damage to our portfolio. The daily fluctuation in stock prices will not do any good for our psychological health as well.

However, if our investing time frame is measured in decades or even generations, we will be forced to think about the things that matter: The long-term prospects of a business; the leaders behind a company; and the value of a business. Singapore Stock Blog

we want to invest in companies that have products or services in the next few years that will not become outdated  – ideally, we want companies with businesses that can succeed. Moreover, when we invest in the long-term, the probability of suffering losses will be much lower. 

Is this a right time to evaluate Singapore stocks for trading Opportunity?

Cheaper or Expensive?

A stock market is “cheap” or “expensive” depends on its valuation. 

Valuation is calculated by the price-to-earnings (P/E) ratio. For an individual stock, computing the P/E ratio involves dividing a company’s share price by its earnings per share. Singapore Stock Blog

There are two methods to simplify our investing decision in getting a better decision or finding which one is cheaper or expensive:

1. To compare the market’s current price-to-earnings (PE) ratio to the market’s long-term average PE ratio.

2. To determine the number of net-net stocks in the market.

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First Method: In this method, we have to current PE ratio with long-term average PE ratio. The local stock market can be represented by the Straits Times Index (SGX: ^STI). It consists of the 30 biggest stocks in Singapore. Since it is difficult to get the past daily PE ratios of the index. On14 May 2018, the SPDR STI ETF had found a PE ratio of 11.6. The long-term average & STI’s average PE ratio from 1973 to 2010 was 16.9 and hit 35 as a high PE  ratio and a low PE ratio for the STI: At the start of 2009, the index was valued at 6 times its trailing earnings.

Based on the data, it is realistic to say that stocks in Singapore are cheaper than average now. Stock recommendation

Second Method: In this method, we measure the number of net-net stocks available in the local market because market capitalization of this stock is lower than its net current value. And it is calculated by using this formula:

Net current asset value = Total current assets – Total liabilities

It is an appropriate theory as investors can get a discount on the company’s current assets, such as cash, after clearing off all liabilities. 

If a large number of net-net stocks than usual can be found in a stock market at a certain point in time, then stocks would be cheapest at that moment. Stock Tips

Stock Research Singapore

From the above chart, we can observe an inverse relationship - when the STI is at a peak, the net-net stock count is low, and when the STI is at a low, the net-net stock count is high. we noted some points from the finding of the graph;

1. Firstly, we saw the net-net stock count fall to a low of below 50 for second-half of 2007 when the STI reached a peak before the Great Financial Crisis struck.

2. Secondly, we saw when the net-net stock count hit a high of nearly 200 in first-half of 2009 and it was during this time that the STI reached its bottom during the crisis.