ST Engineering

$ST Engineering(S63.SG)

Context: ST Engineering stands out to me because it operates across aerospace, defence and smart technology, giving it exposure to several areas of the economy.

My trade: I’m taking a longer-term view on the company and its ability to grow across these businesses while maintaining steady demand.

Takeaway: I’ll pay closer attention to earnings growth and business performance rather than reacting to short-term market movements.

We're now seeing another 4 rate hikes for the following year. that's 100 basis points or 1%. That's not friendly for the stock market.

Fxed deposit rates are going up so the impact of the US Fed rate hike is already being felt. I think local banks will still be resilient so I don’t worry my head over short term fluctuations.

Elevated bond yield is here to stay for a while and I'm in no hurry to add quality REIT. Nibbling just a bit here and there, expecting better discount ahead.

Well the truth is: short term volatility is unavoidable and is "the new normal", or at least when Trump is still in office. Normally we would be used to seeing slower but longer period of growth, hitting new highs before another period of retracing and consolidating. However, with Trump's tariffs policies and the start of US-Iran conflicts, these have led to shorter but more abrupt ups and downs in the stock market. Great for traders, doesn't matter for long term investors. Just trade cautiously after doing your due diligence

PMI hit its strongest level since 2021, pushing the 10-year yield to around 5.11%, a new high since July 2007.

Treasury prices plunged to historic lows.

If rate hike expectations for November are already over 70%, and Treasury prices are falling, does that make sense?

10 years bonds yield above 5%. highest since 2007. What does it mean ? is the Bond trading price lower ? that's why the Bond now gets a higher yield ?

The 10 year bond Yield is once again on the rise to new highs as markets crashed back down after a relief day. SG reits etfs are now on 52 weeks low and there's definitely more pain coming for reits investors.

If you think markets are worth investing in, do so. If not sit out. Who cares if rates are that high? Unless you are the US government then of course you need to do something. Haha.

It’s typical of markets to worry over uncertainty. Ooh rates are so high. Have a look at rates over the past 50 years and you realise it is not that high after all. Then the markets will push higher and narratives change to something else!