On 13 Feb, I was at the Business News award ceremony held by Hang Seng Management College. I think it is great that they have such an award.
Is a dividend yield of six to seven percent still attractive? Some people think that heightened rate hike expectations are unfavourable to the prices of dividend stocks. But low-yield bonds are the real losers of rising interest rates.
The Hong Kong stock market opened yesterday while the mainland China stock market is still at rest, and US stocks had been falling for the past two days. Therefore, it is not a surprise that the Hang Seng Index opened low at the beginning of the New Year. Before that, I had suggested that investors could try betting on a rebound if the Hang Seng opened low.
The US dollar tumbled on 17 Jan right after Donald Trump said that the US Dollar was “too strong”, only for Fed Chairwoman Janet Yellen to contradict the President-elect the following day when she remarked that the gradual tightening of US monetary policy was the right move.
The Hang Seng Index broke above the 23,000 points mark on 18 January, thanks to Donald Trump. All he did was say that the US dollar was “too strong” and “it’s killing us” and his comment drove Hong Kong stocks up.
Having experienced such a phenomenon in 1987, 1997 and 2007, many investors do have high hopes for the stock market in 2017. I think it is highly possible that the 2017 stock market can rise to unbelievable heights, but investor sentiment will ultimately determine the fate of the stock market.
China’s foreign exchange reserves had been close to 4 trillion US dollars, but it fell to around 3 trillion USD last year. The reason for such a substantial decline is that a great number of Chinese people have been exchanging their renminbi for foreign currencies.
The Hang Seng index soared on the first opening day of 2017. It met with pressures of arbitrage on the second day, but that is a natural response to its previous consecutive and significant rise and I believe that a rebound will take place soon.
On 30 December, I flew back with my family to celebrate the New Year in Singapore. The first thing I did, after I alighted from the plane, was to use the airport Wifi to check the closing price of the Hang Seng index.
Many political experts, economists and analysts missed their forecasts and predictions in 2016, which was marked by major paradigm shifts in geopolitics.