BT Money Hacks: Reits and the power of diversification
Smart investors are constantly on the lookout for insightful advice. Particularly in the current landscape in which global bank stocks have recently declined, reflecting trade tensions in global markets.
In the latest episode of Money Hacks by The Business Times, host Howie Lim, brings timely insights on the present and future performance of global bank stocks and Singapore Real Estate Investment Trusts (Reits). Speaking with Daphne Tan, head of business development at CMC Markets Singapore, and Ritesh Ganeriwal, managing director and head of investment and advisory at Syfe, she dives deep in search of actionable strategies.
The current landscape
In Singapore, financial giants such as DBS, OCBC, and UOB saw an average decrease of 1.4 per cent. Moreover, recent US inflation data fell short of expectations, raising concerns about a weakening economic outlook in the United States.
The trio explore the potential for Reits to outperform in a muted Singaporean economy due to their attractive dividend yields. They also discuss whether investors should consider shifting their investments from banks to Reits, offering a unique perspective backed by real-time data.
Reits recent gains
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Tan mentions that while the STI has shown a 2 to 4 per cent performance year-to-date, Reits have demonstrated an average of 5 to 10 per cent. This episode explains how Reits pre-empt a lower rate environment and the rotation happening in the market. Insights from Ritesh Ganeriwal highlight how Reits face headwinds in rising interest rate environments. He expands on his insights in the podcast.
Lim humorously addresses the listener's concern for diversification, ensuring that the advice provided is both trustworthy and practical.
Diversification is the new normal
Ganeriwal and Tan discuss the importance of a diversified portfolio that includes banks, Reits, and high-quality bonds.
They suggest tips on how to balance an income-focused defensive strategy with more growth-orientated tactical approaches, which would apply whether you are a growth investor or seeking stable dividend income.
Listen now for help understanding economic cycles, knowing when to pivot investment allocations, and maintaining a balance between banks, Reits, and bonds. Vital strategies shared by the experts.
Subscribe to Money Hacks for insights that will empower you to make informed investment decisions, ensuring your portfolio remains balanced and poised for growth.
If you have feedback or an idea for a podcast episode, contact us at btpodcasts@sph.com.sg. And look out for the next episode with Howie Lim about the shifts in investor appetite for ETF investments.
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Written and hosted by: Howie Lim (howielim@sph.com.sg)
With Daphne Tan, head of business development, CMC Markets Singapore; and Ritesh Ganeriwal, managing director and head of investment and advisory, Syfe
Edited by: Howie Lim & Claressa Monteiro
Produced by: Howie Lim & Chai Pei Chieh
A podcast by BT Podcasts, The Business Times, SPH Media
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Do note: This podcast is meant to provide general information only. SPH Media accepts no liability for loss arising from any reliance on the podcast or use of third party's products and services. Please consult professional advisors for independent advice.
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