Market Insights on Money FM 89.3
We covered five very different stories on MoneyFM 89.3 today. Somehow, they all led me back to one question.
What happens next?
The chat with Tian Tian Chua went from Asian markets and US bond yields, to Accrelist, UMS, China-EU tensions and even Tesla's US$30 billion financing.
Quite a lot to squeeze into one conversation. 😄
Markets were greener on the techs. Definitely nice to see. But I'm still not popping the champagne yet.
The US 10-year yield is still above 5%. When bonds give you that kind of return, stocks naturally have more competition for investors' money. Add oil and inflation into the mix, and there are still reasons to be careful.
Then we came back home to Accrelist and UMS on SGX.
For Accrelist, I can understand the explanation behind selling its MClean stake at 50 sen. But now it's about execution. Can the 12 buyers complete the deal? Does the RM30 million come in? And what happens to the money after that?
UMS is a different story. Yes, raising RM450 million means some dilution. But the placement price is quite close to where the shares were trading before the halt, which I thought was interesting.
Now they have to put that money to work. New capacity sounds good, but ultimately, can it translate into more orders and stronger earnings?
Tesla is another interesting one.
The headline says US$30 billion, but Tesla hasn't actually borrowed that money. It has secured access to funding as it spends heavily on AI, robotaxis and robotics.
Having access to money is one thing. Making good returns from it is another.
And then China and Europe.
For now, still a lot of words. Hopefully it stays that way. 😅 Markets can handle disagreement. It gets more uncomfortable when restrictions start, China responds, and then you get another round of retaliation.
Maybe that's what I walked away thinking today.
There is always a headline. A number. A market reaction.
But as investors, we probably shouldn't stop there.
Thanks Tian Tian for having me on MoneyFM 89.3 again. Always enjoy these chats, and sometimes talking through these stories helps me connect a few dots myself too. 😊
so let me ask you a question:
Which of today's headlines will still matter three months from now?
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