Honey Money Concluded that REITs Does Not Work For Him From 2022 Experiment Till Now.

Hi Folks, welcome back to Investment Income For Life. This will be a short post. Interestingly, I came across a Youtube video from local Finance Influencer Chris Honey Money recently on why he sold off all his REITs. Basically, he did a 4-Year Experiment: In 2022, Chris scaled down his Syfe REIT+ portfolio to SGD 1,000 to track its long-term performance. The results were extremely disappointing for him. He asserted that after four years (with all dividends reinvested and management fees deducted), his Syfe REIT portfolio value dropped to SGD 998.70 (a loss of SGD 1.30). Then Chris went on to do a market benchmarking by mentioning that during a similar period, the broader Singapore market (STI) recovered and grew significantly (e.g., +23.5% in 2024 and +28.6% in 2025), whereas S-REITs struggled due to prolonged high interest rates.

BK's Thoughts

I thought it is was really strange that Chris mentioned that he ended up with a loss on his Syfe Holdings since 2022. 2022 was actually the year whereby the US Fed did very aggressive rate hike from 0.25% to 4.50% within a year. Therefore, if one has bought REITs in 2022 and before the COVID period of a decade long super low interest rate environment, then it will be blatantly obvious that your SREIT holding will be biting the dust. But if you have been holding REIT for a decade (long term) or topping up or accumulating REITs at that juncture, you will be making great capital gain and also super high distribution yield of 10%+ on cost. You folks can refer to our friend at Investmoolah and his acquisition of United Hampshire US REITs during the downturn in SREIT market prices.

Personally, I can only conclude that Chris's short experiment and result conclusion are very strange indeed as it is too short an experiment. Also, if you were holding on long term to REITs, your dividends distribution would have way covered the decline in the capital value of your REITs at this juncture despite SREIT still being in doldrum mode. Anyway, I still believe that holding REITs is necessary for my own retirement portfolio. 

Ok folks, have a great week ahead and may you all be well and happy always!

Strait of Hormuz: Season 47 of the World’s Longest-Running Soap Opera (Thanks to Donald Trump).

Haiz... here we go again. If you thought daytime soap operas had too many dramatic cliffhangers, recycled plotlines, and evil twins, welcome to the never ending US-Iran fiasco.  Just when you think the writers have run out of material, a senior Iranian official pops up on Reuters to announce that Tehran is ready to escalate tensions in the Strait of Hormuz and launch a "timely and precise" military attack if Uncle Sam doesn't fully implement an interim peace deal within weeks.

Iran's goal? Breaking the U.S. naval blockade and trapping the US in a forever war. Our reaction? A heavy, collective sigh. Seriously, this never-ending soap opera has been extremely painful for everyone and frankly, the scriptwriters aren't even trying to be original anymore.

1. The "Countdown Clock" Tactic

Let's look at the classic playbook at work here:

• The Ultimatum: A high-stakes deadline ("in a matter of weeks!").
  
  
• The Threat: Choking off one of the world's most critical oil transit chokepoints where a fifth of global petroleum moves.
  
  
• The Market Reaction: A sharp spike in Brent crude, an adrenaline shot to defense contractors, and instant palpitations for central bankers trying to declare victory over inflation.
  
  

Every few quarters, we get a variation of this exact press release. Oil markets jump on cue, energy traders make a frantic dash to their Bloomberg terminals, and retail investors wonder if they should start stockpiling canned tuna and crude oil in their bathtubs.

2. The Income Investor’s Survival Guide to Geopolitical Noise

As dividend and income investors, our job isn't to play amateur four-star general on social media. Our job is to keep that steady stream of passive cash flowing into our accounts while the world huffs and puffs. Here is how we look at this melodrama:

1. Energy Dividends Stay Resilient: If you hold quality integrated energy giants or infrastructure pipelines, these geopolitical flare-ups generally provide solid cash-flow support. High oil prices translate to strong dividend coverage and buybacks.
   
   
2. Market Fatigue is Real: Markets hate uncertainty, but they have also developed severe fatigue from repeated geopolitical threats. Notice how every "imminent escalation" causes a temporary tremor rather than a structural collapse of profitable businesses.
   
   
3. Volatility Creates Yield Bargains: Whenever headlines scream panic, irrational dips occur across great income-producing assets (REITs, dividend aristocrats, utilities). Those panic sales are often prime buying opportunities for cash-rich investors looking to lock in elevated yields.
   
   

3. The Bottom Line: Keep Calm and Collect Dividends

Will tensions flare? Probably. Will diplomats scramble at the 11th hour to kick the can down the road? Almost certainly. It’s the standard choreography of international posturing.

So while Tehran and Washington exchange dramatic barbs across the Persian Gulf, we will continue doing what we do best: staying diversified, reinvesting those dividend checks, and refusing to let sensational headlines derail our long-term financial freedom.

Ok folks, let's keep our fingers crossed that above are just plain threats and that there will not be any missiles & bombs being used which is going to lead to more tragic loss of lives. 

The Strange Case of Genting Singapore- Decline In Half Year 2026 Profits But Share Price Shot Up.

Hi Folks, welcome back to Investment Income for Life! If you ever needed proof that Mr. Market occasionally drinks his morning coffee with a dash of tequila, Genting Singapore’s latest 1H 2026 announcement on August 13, 2026 is one such example. In standard textbook finance, when profits drop off a cliff, share prices usually follow them down with a parachute that fails to open. But this past 2 weeks? The house rules got turned completely upside down. I have been busy buying shares of Genting Singapore before the announcement using cash. Additionally, I had sold off my SRS bond fund to prepare for redeployment into Genting Singapore stock (since it seems undervalued to me) but post-announcement, the share price movement caught me off guard.

Extract of Genting 1H FY2026 Results

1. THE COLD HARD NUMBERS: WHAT HAPPENED IN 1H 2026?

• Profits Took a Tumble: Net profit slid substantially by a whopping -34% year-on-year, hit by higher operational expenses and shifting tourist spending habits across the integrated resort.

• Gaming vs. Non-Gaming Tug-of-War: VIP rolling chip volume softened as high rollers tightened their purse strings, while non-gaming revenue (theme parks and hospitality) held the fort thanks to upgraded attractions.

• CAPEX Heavy Lifting: Heavy reinvestment into RWS 2.0 expansion and rising depreciation costs chewed directly into operating margins.

• The Dividend Anchor: Despite the bottom-line haircut, the board maintained an interim payout of 2 cents (annualised dividend yield of 6%), leaning heavily on the company's massive multi-billion-dollar cash pile.

2. THE BIZARRE MARKET REACTION: PROFIT DOWN, PRICE UP
Here is where the script went completely off the rails. The announcement hit the wire with headline declines, and right on cue, the stock decided to... stage a vigorous rally.

• The "Not As Bad As Feared" Relief: The market had already braced for complete disaster. When the results turned out merely "underwhelming" rather than "apocalyptic," short-sellers scrambled for the exits and buyers rushed in.

• Priced-In Pessimism: The stock had been beaten down for months leading up to the release. The actual bad news was already stale bread to institutional algorithms.

• Cash Fortress Appeal: Investors took one look at the pristine balance sheet and virtually zero net debt, deciding the dividend yield remained far too juicy to ignore.

3. WHY MR. MARKET DOES NOT CARE ABOUT YOUR LOGIC

• Sentiment Trumps Spreadsheets: Short-term stock prices do not reflect past accounting profits; they reflect the gap between whisper expectations and reality.

• "Sell the Rumour, Buy the Fact": When everyone positions for a flop, even mediocre news triggers an aggressive short squeeze.

• Accounting Noise vs. Real Cash: Depreciation charges look ugly on the income statement, but they do not drain physical cash from the bank vault today.

4. PARTING THOUGHTS
Well, with the sudden rally, looks like I have to abandon my plan to accumulate further shares of Genting Singapore with my SRS funds for now and turn to other opportunities. But guess I am lucky that I have already built up a significant stake in Genting Singapore just before the half year results announcement. Ok folks, that's all from me today. Have a great week ahead!

(P.S: Please also see my related post on Genting Singapore here: "Genting Singapore (SGX: G13): 6.3% Annual Dividend Yield—Safe Dividend or Value Trap?")