Read? STI : Swee swee rebound??? (3)
STI peak in the recent years on 2 May 2018 at 3,615 and currently, STI is at 2,961 support level i.e. down by -18%
Uncle8888's investment portfolio is down by -5.5% from the new record peak in 2018
Read? Can We really Hedge With Cash Across Market Cycles?
When the Bull is charging ahead; we will hate cash as it is rotting with little return; but when the market tide has changed and sign of Bear taking charge; then only we will realize that rotting cash as war chest can be seen as a hedge.
Truly defensive investment portfolio are build during market crashes with POSITION sizing, money and risk management for the next market cycle.
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US Futures down 1000 at 7am SGT. Double whammy OPEC price war + covid 19.
ReplyDeleteWhen the house is on fire ppl come to rob. In this case Russia is the robber. US screwed Russia in the Nord 2 project and Venezuela projects. Russia is giving one back by not supporting production cuts causing MBS to launch a price war
The benchmark 10-year Treasury yield broke below 0.5% for the first time ever as coronavirus fears, coupled with an all-out oil price war, sent investors flocking to safer government bonds.
ReplyDeleteThe yield on the benchmark U.S. 10-year Treasury briefly touched an all-time low of 0.499% in overnight trading Sunday. Bond yields move inversely with prices. The benchmark rate has tumbled 40 basis point in March alone.
Look like STI entering Bear market liao!
ReplyDelete"It looks like an all-out Saudi shock and awe strategy to drive up Saudi volumes and compete with Russian oil in their own backyard in Europe as well as Asia," said Tilak Doshi, a senior visiting fellow at Middle East Institute, National University Singapore.
ReplyDelete"This could be even worse than 2nd half 2014 and prices could test $30 or even $20 given the simultaneous demand shock with the coronavirus impact on economic activity," said Doshi who has previously worked for Saudi Aramco.
A trader with a North Asian refiner said the "crazy" price cuts could lead Brent to test $40 a barrel soon.
The slump in crude costs will likely support Asian refiners' margins which have been battered by a demand slump from the coronavirus outbreak, traders and analysts in Asia said.
"It's good news for refiners and consumers," one of the sources said.
Asian buyers are currently spoilt for choice as the arbitrage windows for oil from Europe, Africa and the Americas have opened after Brent's premium to Dubai narrowed sharply and tanker freight rates slumped from January highs.
"It is not clear just how responsive the U.S. shale producers will be since significant volume is locked into price put options and large producers such as ExxonMobil and Chevron have deep pockets on their own balance sheets and so will not have to respond immediately with output cuts," Doshi said.
Prompt prices are also expected to fall more than those in future months, widening a market structure known as contango that will encourage traders to store oil, traders said.
The last major oil contango play, as the trading strategy is known, was in 2014-2015 where millions of barrels of oil were stored onboard ships and in tanks across Asia, Europe and Africa.