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Saturday, 17 March 2018

Defensive Stocks, REITS and Trusts Series: Singtel, 17 March 2018, 11.17pm Singapore Time


Defensive Stocks, REITS and Trusts Series: 
Singtel, 17 March 2018, 11.17pm Singapore Time
(Click on Technical Chart above to Expand)

Attached is the continuation of the Defensive Stocks, REITS and Trusts Series which I had previously covered. Today, we shall cover Singtel -- another defensive equities, reits or trust group of stocks that are expected to wither under the rising rates environment because rising interest rate yields will draw the blood out of these group of stocks. Worse, the Telco industry runs the threat of continually being cut throat by new technologies. The OBV is glaring red flags too for these groups of stocks worldwide. Singtel is just another classic example. As can be seen from the technicals OBV, the smart monies are never coming back now for Singtel. This $3.49 is never the same anymore. This kind of technicals can be possible only because fools' monies are in, while smart monies are out.

Keynote of DNA:
In rising interest rates environment, defensive stocks, reits and trusts lose their shine. Interest rates close up the gap between interest yields and dividend yields and cause selling pressure on these kind of asset classes. Other asset classes offered by banks and insurance companies will offer much better shine for the high yields and lower risks in rising rates environment (hence, Banks and Insurance Companies to benefit greatly). Cyclical stocks are often favoured in rising rates environment.

Previous Defensive Stocks, REITS and Trusts Series of Analyses:

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