Monday 20 October 2014

Correction on its way

On 13 Sept and 28 Aug, my blog highlight risk of correction. And stock market fall. The correction shall last longer. It is too early for bottom fishing.

When correction is over. Both SG and HK  commerical REITs are attractive. I like Fortune Reit, Frasers Commerical, Frasers  centrepoint trust and CapitalMall. All of them have low PE ( 5 to 10) and reasonable yield around 6%.

Industrial REITs face both JTC's new law to increase major tenants ratio and market over supply. Their rental yield and performance would be restricted in 2014 to 2015.

Shopping Mall REITs offer stable dividend return. Potential increase in rental and dividend yield.

For investors with strong heart, China properties Developers share price are cheap. China's urbanization will continue. And almost all Chinese want to buy their house. China properties market will recover. It is just a matter of time.

China's big 4 banks stock price are also very attractive. Low PE , good dividend yield and high book value. They are all time my favour.

keywords : Correction, Frasers, REIT, properties, China Bank