Interesting Posts of the Week In Our Blogosphere Community.

Hi Folks, this is going to be a short post for sharing. Recently came across 2 interesting and thought provoking posts in our Blogosphere Community:

1. "Coping With The 32% Decline In Dividends" (By Towards Barista FIRE)

I have been following Barista Fire here as both of us subscribed mainly to the dividend investing approach and he has been generous online in sharing his journey towards financial independence. Our mate from “Towards Barista Fire” has shared some strategic move execution in order to address the inevitable problem of dividends cuts that will sooner or later arise due to uncontrollable marco-economic events such as the (i) 2020 COVID pandemic on most businesses and (ii) the 2022 sudden interest rate hike environment that lead to devastating impact on REITs dividend distribution. 

For those who are about to embark on “Barista” Fire, it will be good to have a quick perusal on the 2 strategies that he has mentioned in particularly on the 2nd strategic execution method to address the volatility or lumpiness in the dividend investing approach- please see his interesting thoughts and post here. 

2. "Just sold at record high!" (By Property Soul)

Nice post and warning given by Property Soul especially with regard to the “myth” from news media that Singapore properties has always appreciate in value and keep setting new record high prices. She has also shared the forgotten mid-1990s era where many over-zealous property buyers bought at the peak of the property cycle and then took 20 years to break even their purchase. In addition, all the "hoo-hah" of ever record property selling price that appears in the media one should take it with a pinch of salt. 

I am apprehensive about the indomitable confidence of some property agents and property YouTubers in the buy and upgrade private properties to make money and achieve financial independence. Apparently, Singapore property will always appreciate in prices. It is also asserted that the purchase of 2 private properties (1 for own family living and 1 for rental investment income+ capital appreciation) is a “proven” way to succeed in Singapore. 

Parting thoughts

My current wishlist is for interest rate cuts to start materialising soon from the US Federal Reserve before most of my holdings in REITs start to disintegrate into oblivion. Powell has recently told the House Financial Services Committee that he expects interest-rate cuts to come this year. He echoed those comments on Thursday before the Senate Banking Committee, saying that cuts "can and will begin" this year- so let's keep our fingers crossed.