Monday, October 12, 2020

Propnex & Banks Leading The Phase 3 & Post-Covid Counter Attack!

The counter-attack begins

The stock market is forward-looking. It tends to reflect the real economy one to two quarters in advance. Over the last couple of weeks, various countries in Asia have been discussing to launch green lanes and travel bubbles. The Singapore government is also planning to take the nation into Phase 3 re-opening. All positive developments. 

Just as I anticipated, the local residential property market will be one of the leading sectors as the economic recovery gets into full-steam. And we all know the property market and banking sector work hand-in-hand. More housing sales potentially translate to loan growth for the banks. Younger workers in IT/Tech sectors and civil servants with more stable income have been driving up demand in the local property market. With the largest market share, my playmaker (Propnex) shall be leading the counter-attack with the forwards (DBS, UOB & OCBC). Even after the pandemic is gone, my defence (Blue-chip REITs) will continue to provide a stable foundation. They are the 'spine' of my portfolio football team!

E-commerce is not enjoyable

Besides spending on big-ticket items like a property, consumer spending should slowly return to pre-covid levels. Singapore is a densely-populated island with hot and humid weather all-year round. Visiting the shopping malls, especially the suburban ones is part of our lifestyle. I would even say malls form a part of our social fabric. There is no alternative. The 2-month Circuit Breaker has proven that a 100% e-commerce model in Singapore is no fun. We were close to being prisoners in our own homes, clicking the 'Order/Buy' button on computers or smartphones. Brick-and-mortar stores still serve a purpose. Having meals and drinks at eateries, cafes or restaurants is still a better experience. A freshly-cooked, piping hot fried pork cutlet taste so much better than a home-delivered one. Or a pasta dish. By the time the pasta reaches your doorsteps, it is no longer al dente. I am confident in the revival of suburban retail malls. That's why I shall support FCT's preferential offering.

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