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  • Feb 2023 Great Citibank Credit Card Deals: Stand to receive Dyson, Switch, AirPods Pro and more gifts.

    For February, Citibank is once again running great 2023 promotions for customers to sign up for a Citibank card. Applicants get to choose from one of four tempting rewards and deals. This promotion is valid till the 14th February 2023. 

    1. Dyson Supersonic  (worth S$649)
    2. Nintendo Switch OLED (worth S$549)
    3. Apple AirPods Pro 2nd Gen plus MagSafe Charger Bundle (worth S$422)
    4. $350 cash.

    Steps to Sign up for this Feb 2023 promotion:

    1. Firstly, Click here to sign up for the latest Citibank cards
    2. Secondly, spend a min. spend of S$500 must be made on eligible products within 30 days of card approval 

    Welcome Offer Terms and Conditions

    All Citibank Cards that are eligible for this promotion

    In addition, do check out our other latest articles. The Battle of the Digital Banks, All you need to know about Link REIT and Can the US overcome their debt ceiling.

    Lastly, looking for some good credit card deals, make sure to check back next week. We’ll be sharing some great offers that you won’t want to miss. In the meantime, if you have any questions about credit cards or how to use them wisely, feel free to leave a comment below and we’ll be happy to help. 

    Disclaimer: The information provided by LearnToInvest serves as an educational piece and is not intended to be personalized investment advice. ​Readers should always do their own due diligence and consider their financial goals before the usage of these products. We do not offer any warranty or assurance regarding the quality of these services or goods.

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  • Can the US overcome their debt ceiling?

    The US is facing an unprecedented debt crisis. With the current federal debt reaching $31 trillion and still rising, it may be only a matter of time before the US faces a debt ceiling crisis. But can they overcome this problem? In this blog post, we’ll explore the realities of the US’s rising debt and how they can potentially solve their current financial problems. We’ll consider both short-term and long-term solutions to tackling their debt ceiling, as well as potential risks associated with taking such measures. Read on to learn more about the US’s debt situation and what might happen if they fail to tackle it.

    How did this occur?

    There are a number of factors that have led to the current debt ceiling crisis in the United States. 

    Firstly, the country has been running large budget deficits for many years. This has meant that more and more debt has been accumulated, and the debt ceiling has had to be raised on several occasions. 

    Secondly, there has been slow growth in the economy, which has meant that tax revenues have not been growing as fast as government spending. 

    Lastly, recent political gridlock has made it difficult for Congress to agree on any kind of fiscal reform that would reduce the deficit.

    Moreover, the rise of the coronavirus crisis has accelerated an already unsustainable fiscal trajectory because of its devastating effect on the economy and legislative response. 

    What is the debt ceiling now?

    The debt ceiling has been a contentious issue in American politics for years. The debt ceiling is the legal limit on the amount of money the federal government can borrow. It was instituted in 1917 as a way to limit government spending and borrowing.

    The debt ceiling has been raised numerous times over the years, and is currently set at $31.4 trillion. This number represents the maximum amount of money the government can borrow to finance its operations.

    If the debt ceiling is not raised, it could have catastrophic consequences for the economy. The government would be unable to pay its bills, which would lead to a default on its debt. This would cause interest rates to spike and could trigger a financial crisis.

    Raising the debt ceiling does not mean that the government is free to spend as much money as it wants. It simply allows the government to continue borrowing money to finance its operations at current levels. Failure to raise the debt ceiling would have severe consequences for the economy. Hence, it is imperative that Congress act quickly to avoid this outcome.

    Ways to reduce the debt

    There are many ways to reduce debt, but some are more effective than others.

    One way to reduce debt is to increase taxes. This will bring in more revenue and help to pay down the debt. 

    Another way to reduce debt is to cut spending. This can be difficult, but it is necessary in order to get the debt under control.

    Another way to reduce the debt is through inflation. This causes the money that is owed to be worth less over time, which reduces the amount of money that needs to be paid back. 

    Finally, economic growth can help to reduce the debt. As the economy grows, so does the government’s revenue, which can help to pay down the debt.

    Conclusion

    The US debt ceiling is a serious issue that needs to be addressed and solved in order to prevent further economic decline. Fortunately, there are multiple ways the US can begin tackling this problem head on. Increasing taxes, creating new revenue streams and cutting spending are just some of the strategies available to overcome their debt ceiling. These solutions still need to be implemented properly. However, if the US wants to make any real progress in overcoming their debt crisis. With proper planning and foresight, it’s possible for the government to turn things around and get back on track financially.

    In addition, if you do like the finance matters we share, check out our other latest articles. Trust Bank ReferralsIs Tesla a good buy and All you need to know about Link REIT.

    Disclaimer: The information provided by LearnToInvest serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before the usage of these products. We do not offer any warranty or assurance regarding the quality of these services or goods.

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  • ALL YOU NEED TO KNOW ABOUT LINK REIT

    LINK REIT has been on the financial news in late 2022 after its recent headline-worthy acquisitions. The deal will include Jurong Point and Swing By @ Thomson Plaza which is expected to complete by March 2023. However, many Singapore investors may be a little foreign to this REIT as it is listed in the HK Stock Exchange. 

    Hence, we hope to take this opportunity to share more about the largest REIT in Asia. 

    Link REIT has properties in four majority categories. 1) Retail 2) Office 3) Logistics and 4) Car parks and related business. The properties are located in Hong Kong, Mainland China, Australia and the United Kingdom. As at 2023, its total portfolio size stands at 152 investments totalling approximately HK$234 billion. 

    Overview of Link REIT Business

    Overview of Link REIT Business in 2022
    Source: Link REIT Annual Report 2022

    Key highlights of Link REIT Portfolio:

    • 152 Properties
    • Geographic breakdown:
      • 130 (Hong Kong), 12 (China), 10 (Australia and UK)
    • Portfolio Size: HK$234 billion

    Link REIT Gross Revenue & Net Property Income

    Source: Annual Report 2022

    Gross Revenue for FY22 rose to HK$6.04 billion from FY21 HK$5.78 billion. The Compound Annual Growth Rate (CAGR) of Link REIT’s Gross Revenue over 5 years amounted to 5.22%. Gross Revenue by geography from its properties are 73.1% in Hong Kong, 10.6% in China, 16.2% in Overseas and Others as at FY22.

    Source: Annual Report 2022

    Net Property Income (NPI) for FY22 rose to HK$4.59 billion from FY21 HK$4.39 billion. Both increase in Gross Revenue and Net Property Income (NPI)  for FY21 was largely attributable to the steady top-line growth and new contribution from Australian retail and office properties. The Compound Annual Growth Rate (CAGR) of Link REIT’s NPI over 5 years amounted to 5.10%.

    Link REIT‘s Distributable Income & Distribution Per Unit

    Source: Annual Report 2022

    Distributable Income for FY22 maintained steadily at HK$3.27 billion from FY21 HK$3.34 billion. The Compound Annual Growth Rate (CAGR) of Link REIT’s Distributable Income over 5 years amounted to 4.40%.

    Source: Link REIT Annual Report 2022

    Link REIT’s Distribution Per Unit (DPU)  has climbed by a remarkable 4.46% per annum since FY2018. It has been providing a steady average DPU of HK$1.46. Rising financing costs and the lack of a discretionary distribution have dampened DPU growth.

    Link REIT‘s Gearing Ratio & Property Yield

    Source: Annual Report 2022

    Gearing Ratio rose to 22.7% for FY22 from 22.0% in FY21. This is due to the new Australian investment acquisitions that the company took to expand the business. This demonstrated that Link REIT is financially sound. It has HK$15 billion in debt headroom before meeting its gearing limits respectively.

    Source: Annual Report 2022

    Similarly, Link REIT property yield rose slightly due to increase in property income from their new investments. As a result, the property yield in FY22 increased to 5.7% from 4.8% in FY21.

    Link REIT‘s Occupancy Rate

    Source: Annual Report 2022

    Occupancy rates have increased to 96.0% (FY22) from 93.8% (FY21). This is attributed to improved occupancy of the Hong Kong office portfolio, new acquisition of Hong Kong car parks and China Logistics properties. 

    Link REIT‘s Interest Coverage Ratio

    Source: Annual Report 2022

    Link REIT debts are evenly spread out across the next decade. The Weighted Average Debt Term decreased from 3.4 years to 3.2 years (as of October 2022). Link REIT has an impressive interest coverage ratio of 6.5 times, demonstrating its solid financial health.

    Link REIT‘s Rental Reversions

    Source: Annual Report 2022

    Link REIT Portfolio has a diversified tenant mix across its different geographic portfolio. Rental reversion for FY22 is expected to be in the positive low single-digit range. This is due to strong leasing demand for China Logistics and Hong Kong Retail properties. 

    Link REIT‘s Growth Prospects

    Link REIT’s growth goal is to grow a portfolio with prime assets and diversified across APAC regions. 

    With a diversified portfolio and geographical, Link REIT will continue to maintain strong and steady income. As a result, it will be in a great position to benefit from these favorable conditions due to their investments. 

    Link REIT Past Dividend Yield

    Dividend Yield (5 Year)

    The current Dividend Yield Link REIT stands at 4.70%,it’s 5-year Avg Yield stands at 3.99%

    Source: Y-Charts

    Dividend Yield (1 Year)

    The current Dividend Yield Link REIT stands at 4.70%,it’s 1-year Avg Yield stands at 4.81%

    Source: Y-Charts

    Our Stand for Link REIT

    Link REIT has been one of the largest and strongest REIT in asia. It has also built a long-term track record of delivering.

    • Strong historical growth in Gross Revenue
    • Favorable Lease Arrangements – Long Lease Tenure, Guaranteed Rent Increments
    • Strong future growth acquisitions

    Link REIT, despite its strong fundamentals, nevertheless appears fairly valued to me, with a current dividend yield of 4.70%. Before investing, I would prefer a bigger margin of safety and a yield of about ~6-7% yield.

    4 Steps to signup and qualify for the Welcome Reward by Moomoo SG (While Stocks Last) – Worth Up to S$220!

    1. Register for a Moomoo SG Universal Account  and download the moomoo App on your phone
    2. Open an account (Singpass supported for quick approval)
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    4. After signing up for the moomoo SG Universal Account using Learn To Invest link, email us with a screenshot of your moomoo SG Universal Account and we send you an exclusive portfolio watchlist 

    In addition, if you do like the finance matters we share, check out our other latest articles. Trust Bank Referrals, Is Tesla a good buy and US Tech VS Chinese Tech.

    Disclaimer: The information provided by LearnToInvest serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before the usage of these products. We do not offer any warranty or assurance regarding the quality of these services or goods.

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  • Is Tesla a good buy now? After dropping 70%

    In the past few years, Tesla has become one of the most talked about companies in the world. From its electric vehicles to its battery technology, it’s no surprise that many investors are interested in Tesla stock. But with so much hype surrounding the company, is now a good time to buy Tesla stock? In this article, we’ll examine the factors that influence Tesla’s stock price. We’ll also discuss whether it is a good buy right now.

    Tesla dip 70%
    Tesla dip 70%

    1. The Twitter Mania

    Elon Musk Twitter Mania Tesla
    Source: Al Mayadeen

    Since Elon Musk took over, Twitter has seen a surge in usage and popularity. This is primarily due to the increased presence of celebrities, influencers and public figures who have joined Twitter. It is a platform for them to voice their opinions and engage with their fans. This surge in activity has resulted in an influx of new users and a wealth of content being generated. Thus, this naturally resulted in the phrase “Twitter Mania”.

    Along with Musk, many other public figures such as Bill Gates, Barack Obama, Justin Bieber, Rihanna, Kim Kardashian and many others are now active on the platform. The popularity of these accounts has led to an increase in media coverage for Twitter.

    Unfortunately, the increased presence of high profile figures on Twitter has also had some negative effects on Tesla. Many of Elon Musk’s posts have been criticized for going against company policy or being unprofessional. This has caused reputational damage to the company. Additionally, many of his tweets have been used as ammunition in lawsuits against the company, including one filed by the U.S. Securities and Exchange Commission (SEC). Finally, the distractions from running a major technology company may be causing him to neglect his duties at Tesla. Moreover, this may potentially put long-term goals and projects at risk.

    2. Tesla Competition

    top electric car manufacturers: Tesla, SAIC, BYD
    Source: Statista

    As Tesla’s only real competition in the electric car market, it’s worth taking a closer look at what General Motors has to offer. The Chevrolet Bolt EV is GM’s answer to the Tesla Model 3, and it’s a pretty solid option in its own right. It has a range of 238 miles per charge, and it’s significantly cheaper than the Model 3, starting at just $37,495. The Bolt EV does have some drawbacks compared to the Model 3, though. It’s not as fast or as luxurious as the Tesla, and it doesn’t have nearly as much name recognition. But for those who are looking for a more affordable electric car option, the Bolt EV is definitely worth considering.

    BYD is one of the leading electric car manufacturers in China and is a major competitor for Tesla. The company offers several models, including the Qin, the Tang and the Song. All of these cars have impressive range numbers and powerful battery packs, making them viable options for those looking for an alternative to Tesla’s vehicles.

    Additionally, BYD’s cars are much more affordable than Tesla’s models, with some costing half as much as a Model 3. However, while they may be cheaper, they do lack some of the features that make Tesla cars so popular. For example, they don’t have access to Tesla’s extensive charging network or autonomous driving technology.

    3. Tesla production and demand in China

    tesla EV vehicles in china
    Source: InsideEVs

    Tesla had seen strong demand for its cars in China since it opened a Shanghai factory in October 2019. It had sold over 50,000 vehicles in the country by the end of 2020, making it one of the top-selling electric car makers in the world’s largest automobile market.

    However, due to the recent surge in COVID cases, Tesla has been forced to reduce production at its Shanghai facility and has stopped taking new orders from customers. This comes despite China’s overall car sales rising slightly year-on-year in March 2021.

    Tesla is likely to be impacted by the current situation in China, as any further delays or disruptions could affect its ability to meet customer demand. That said, Tesla remains confident about its future prospects in China and expects sales to remain strong once the pandemic subsides. The company is also exploring opportunities to further expand its production capacity in the country. It recently announced plans to build a R&D facility near Shanghai, as well as a battery factory in China’s central Hubei province.

    4. Elon Musk selling Tesla shares

    It’s no secret that Elon Musk has been offloading his Tesla shares lately. In the past month, he’s sold over $10 million worth of stock in the electric car company. And it’s not just a one-time thing – he’s been selling Tesla shares regularly since early 2019.

    There are a few possible reasons for this:

    1. He needs the money

    Musk is estimated to be worth around $23 billion, but a lot of that is tied up in Tesla stock and other assets. Selling some of his Tesla shares gives him access to cash that he can use for other things. By selling stock, Musk is reducing his personal financial exposure to Tesla. If the company were ever to face major legal or financial problems, he wouldn’t be as directly affected by any losses that might result.

    2. To signal confidence in the company

    Because Musk is the company’s founder and largest shareholder, investors watch him closely for signals about how he feels about Tesla’s prospects. By selling his shares, he could be signaling that he believes the stock is overvalued and that it’s a good time to take profits.

    3. He wants to diversify his investments

    By selling Tesla shares, Musk is able to free up some money to invest in other companies and industries. This diversification helps him spread the risk of any one company or industry crashing.

    No matter what his reasons are, Musk’s move has certainly raised some eyebrows – and given investors something to think about.

    5. Tesla risks

    Tesla faces a number of risks that could impact the company’s financial performance and share price. These include:

    • Tesla is heavily reliant on government subsidies and incentives, which could be reduced or withdrawn in the future.
    • Tesla’s sales are highly dependent on the continued success of its flagship Model S sedan, which could face increased competition from other luxury automakers.
    • Tesla has yet to prove that it can mass-produce vehicles profitably, and the launch of its new Model X SUV has been plagued by delays and quality issues.
    • Tesla faces a number of potential lawsuits and investigations related to its recent Autopilot crashes, which could damage the company’s reputation and finances.
    • Tesla is carrying a large amount of debt, which could weigh on its financial performance if interest rates rise or demand for its vehicles declines.
    • Tesla faces significant competition from well-established automakers in the electric vehicle market, including General Motors, Nissan, and BMW.

    Conclusion

    All things considered, Tesla is certainly an attractive stock to buy right now for both long-term and short-term investors. It has tremendous growth potential due to its innovative technology and its continued expansion into new markets, which makes it a great option for those looking for high returns on their investments. Additionally, the company’s financial position indicates that it will be able to weather any potential difficulties in the future. Thus, investing in Tesla could be a smart move after their earnings – 25 Jan 2023!

    Talking about Earnings, you guys can check out moomoo Latest Feature – moomoo’s Earnings Calendar.

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    moomoo Latest Earnings Calendar Feature
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  • Saudi Arabia may become one of the most influential countries in the world by 2030. Do you agree?

    The Middle East has always been an epicenter for power and wealth. This could be seen during the height of the Ottoman Empire in the 16th century. It is still visible today with countries such as Saudi Arabia and the United Arab Emirates emerging as world powers. In fact, according to several studies, many predict that by 2030, Saudi Arabia will become one of the most influential countries in the world. In this blog post, we will explore what factors are contributing to this trend and how it will shape global politics in years to come.

    Saudi Arabia Origins

    saudi arabia origins
    Source: IvyPanda

    Saudi Arabia has a long and complex history, with its origins dating back to the pre-Islamic era. The region was once part of the Ottoman Empire, and later became a British protectorate. In 1932, the Kingdom of Saudi Arabia was established, and has since been a key player in regional politics.

    The Kingdom of Saudi Arabia is the largest state in the Middle East, and possesses the world’s second-largest reserves of oil. This gives the country significant economic power, which it has used to exert influence in the region and beyond. Saudi Arabia is a major player in both the Arab League and the Organization of Petroleum Exporting Countries (OPEC). Moreover, it is also a close ally of the United States.

    In recent years, Saudi Arabia has been increasingly assertive on the international stage. The country has intervened militarily in neighboring Yemen, and led a diplomatic campaign against Iran. These actions have made Saudi one of the most influential countries in the Middle East, and given it significant clout on the global stage.

    Saudi Arabia Investment Fund

    saudi investment fund - invested in companies such as facebook, alphabet, disney, shell etc

    The Saudi Arabia Investment Fund (SIF) was established in 1971 as the Kingdom of Saudi Arabia’s investment arm. The SIF was created to invest in domestic and foreign projects that would contribute to the economic development of the Kingdom.

    In recent years, the SIF has made significant investments in a number of companies and industries. This includes technology, healthcare, and renewable energy. These investments have helped the SIF to become one of the largest sovereign wealth funds in the world. It has an estimated value of over $800 billion.

    The SIF’s investment strategy is focused on achieving long-term financial returns and supporting the Kingdom’s Vision 2030 objectives. The fund typically invests in a mix of public and private companies. There is a particular focus on companies that are expected to benefit from Saudi Arabia’s economic reform program.

    Recent investments by the SIF include a $45 billion stake in SoftBank’s Vision Fund, a $1 billion investment in ride-hailing app Uber, and a $3.5 billion investment in electric car maker Tesla.

    The SIF’s role in Vision 2030 is to help diversify Saudi Arabia’s economy away from its reliance on oil revenues. By investing in high-growth industries such as technology and renewable energy, the SIF is helping to create new jobs and opportunities for Saudis.

    2029 Winter Olympics

    artist impression of 2029 winter Olympics venue

    Saudi Arabia may become one of the most influential countries in the world by hosting the Winter Olympics. The kingdom has never before hosted a major sporting event. However, it has put itself in contention by bidding for the rights for the FIFA 2030 World Cup.

    While Saudi Arabia’s human rights record is widely criticized, the country has been working to improve its image in recent years. With the successful bid to host the Winter Olympics, it would be a major coup for the kingdom. In addition, this would further boost its influence on the global stage.

    Signing of Cristiano Ronaldo

    Cristiano Ronaldo earning how much in saudi?
    Source: Learn To Invest

    Cristiano Ronaldo, one of the world’s most famous soccer players, has recently signed a deal.

    With who?

    With Saudi Arabia Professional League Club, Al Nassr. The signing is a coup for Saudi, which has been working hard to improve its image in recent years.

    Ronaldo is one of the most decorated soccer players in history, having won five Ballon d’Or awards and numerous other honors. He is also hugely popular, with over 200 million social media followers. His signing is sure to generate a lot of positive publicity for Saudi Arabia.

    Saudi Arabia has been on a mission to become more influential on the global stage in recent years. The country has made significant investments in sports and entertainment, and the signing of Ronaldo is just the latest example of this. With its growing clout, Saudi may soon become one of the most powerful countries in the world.

    Saudi Arabia 2030 World Cup?

    The Egypt–Greece–Saudi Arabia 2030 FIFA World Cup bid is a joint bid to host the 2030 FIFA World Cup. This joint bid involves Egypt, Greece, and Saudi Arabia. Saudi Arabia is expected to lead the effort. If successful, it would be the first FIFA World Cup hosted in countries that are part of three different football federations (AFC, CAF and UEFA) on three continents: Asia, Africa and Europe

    In recent years, the three nations have developed strong political, economic, and military ties. The bid could be the culmination of the alliance between the three nations, and results are expected to be officially announced soon. Furthermore, the three countries share extensive maritime borders: Egypt with Greece and Egypt with Saudi Arabia.

    Conclusion

    Saudi Arabia is certainly poised to become one of the most influential countries in the world by 2030. In addition, its vast natural resources and strategic geographical position, it has an advantageous starting point on which to build a strong economy and political influence. Moreover, by investing in infrastructure development, strengthening diplomatic ties with other nations, and furthering education opportunities for its citizens, Saudi Arabia can rise to becoming one of the greatest powers in international affairs by 2030.

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  • US Tech or Chinese Tech? Where do we invest in 2023?

    As we enter the new year, there’s one big question on everyone’s mind. Should we invest in US tech or Chinese tech for 2023? 

    Starting with US tech, there’s no doubt that this industry has been doing well over the past decade. By the end of 2021, the US tech industry was worth an estimated $1.6 trillion. The current US Tech market estimates to account for 35% of the total world market. American tech companies are responsible for some of the most innovative and cutting-edge products and services in the world. Some notable names include: Alphabet, Apple, Microsoft, Amazon and more. 

    Introduction

    However, in the past few months, the US tech stock prices have also taken a beating. In 2022, the tech-focused NASDAQ has declined by over 30%. The following is mainly attributed to economic uncertainty, rising interest rates and disappointing earning results. As a result, the narrative for investing has also gradually shifted from forecasting future growth to profitability. Hence, many US tech stocks are now less appealing to investors as most of them are not yet profitable. However, for profitable US Tech companies, could this be an opportune time to invest in them?

    Turning to Chinese tech, this is an industry that has seen many headwinds in the recent two years. The most noteworthy event would be China’s tech crackdown by the Chinese regulators on data usage and monopolism acts. As a result, many Chinese tech firms’ earnings were also affected over the past 2 years. This has triggered a selloff for many of these Chinese Tech firms. It was estimated that more than $1 trillion was wiped off from the market value of some of these prominent companies. 

    However, the easing of China’s covid policies has gotten many investors excited. Many are expecting the Chinese economy and consumption to recover which will eventually benefit the Chinese firms. It seems to be a matter of time before the Chinese economy recovers. Could now be a good time to start investing in them?

    Both the US and Chinese Tech companies seem to have their fair share of pros and cons. Let’s take a closer look into the qualitative and quantitative factors to determine.

    Qualitative Factors affecting US and Chinese Tech

    When it comes to making investment decisions, there are many factors to consider. But when it comes to deciding whether to invest in US tech or China tech, there are two main factors that come into play: qualitative and quantitative. For Qualitative factors, we will be looking into factors like Interest Rates, State of Economy and Regulatory Pressure. 

    Qualitative Factor #1: Interest Rates

    In general, tech stocks tend to be negatively impacted by rising interest rates. This is because high interest rates make the cost of borrowing more expensive. As many investors would say, the era of easy money comes to an end. This reduces the tech businesses’ cash flow and makes it harder for them to reinvest into innovation and growth prospects. Additionally, for unprofitable tech companies, higher interest rates means a reduction of expected cash flow which represents lower valuation. 

    US Interest Rates (5 year)
    China Interest Rates (5 year)

    The current interest rate environment in the US and China is 4.5% and 3.65%, respectively. It appears that the rising loan rates are currently having a greater impact on US tech companies. In addition, it is anticipated that the US terminal interest rate would rise to 5.1% in 2023. This would indicate that the financing environment for US tech enterprises in 2023 is anticipated to be more challenging.

    Winner: Chinese Tech Firms

    Qualitative Factor #2: State of Economy

    With regards to COVID-19, the US and Chinese governments have taken quite different positions. US has been managing the COVID-19 policies at the state level. Many US states began to lift most or all of their restrictions in the spring and summer of 2021.   

    As for China, they have only recently announced easing measures for Covid in December 2022. Self-isolation will now be permitted if they are contracted with Covid. Additionally, they won’t need to perform any virus tests before their trip.

    China’s current economic recovery is slower because China eases their COVID-19 policies a year later than US authorities. This is also evident in the consumer spending for both the US and China. A study by Mckinsey has shown that the US consumers spend 18% more in March 2022 than March 2020. This is 12% more than forecast based on pre-COVID trajectory. 

    US Consumer Spending

    According to CNBC, China’s current consumer spending is at about 50% of normal levels. However, many are only expecting business to return back to normalcy after 3 to 4 months. The Chinese Tech sector is anticipated to be more negatively impacted given the current state of both economies.

    Winner: US Tech Firms

    Qualitative Factor #3: Tech Regulations 

    Regulations related to technology have affected technology firms in both China and the United States in different ways. 

    In China, technology firms have generally had to comply with strict regulations and censorship rules. Some of the notable regulations include the “common prosperity” campaign and “anti-monopoly” rules. This is because as some of the Chinese Tech grew larger over the past decade, they have squeezed out small business instead of promoting healthy competition. This was a concern for the Chinese government and thus the authorities tightened enforcement of its antitrust laws in 2021. This was to align the Chinese companies back to the whole “common prosperity” campaign that was emphasized by the Chinese regulators. As a result, tech firms like Alibaba, Tencent, Didi, Bytedance and JD.com were all handed hefty fines for abusing their market power. 

    In addition to that, many of these tech firms were holding on to a lot of customer’s personal data. This became a concern as the government was afraid this could fall into the hands of foreign authorities or entities. Hence, many Chinese Tech firms had to do significant business reform to align with the authorities’ regulations. 

    In the United States, technology firms have generally had more freedom to operate. However, they also do have their fair share of scrutiny. The US government has been focused on issues related to data privacy, national security, and competition in the technology sector. Some key examples include the Cambridge Analytica data scandal.

    Overall, both Chinese and US technology firms have been affected by regulations in their respective countries. However, the nature of these regulations and their impact on the firms is different. Chinese firms face more restrictive regulations and censorship, while US firms are facing increased scrutiny and potential penalties for noncompliance.

    Winner: US Tech Firms

    Quantitative Factors affecting US and Chinese Tech

    Before we deep dive into the quantitative factors, do note that we are only taking the top few companies as a reference. Hence, it may not paint a complete picture of the entire tech industry for the respective countries. 

    For US Tech firms, we have selected the following: Apple, Alphabet, Amazon, Microsoft and Meta. While for Chinese Tech firms, they are as follows: Alibaba, Tencent, Meituan, JD.com and Xiaomi. 

    Quantitative Factor #1: Revenue Growth

    The US Tech companies’ average revenue growth rates are 8.46% (1Y), 18.33% (3Y) and 18.86% (5Y) respectively.

    On the other hand, Chinese Tech companies’ average revenue growth rates are 3.70% (1Y), 19.41% (3Y) and 27.04% (5Y) respectively.

    The Chinese tech sector displays slightly higher revenue than its US counterparts, despite regulatory pressure and delayed Covid easing measures.

    Winner: Chinese Tech Firms

    Quantitative Factor #2: Operating Profit Margin Growth

    Next, we compare the operating profit margin across the tech firms. As these companies grow, “Operating Margin” will give us a glimpse of how well managed the company is. This is because it illustrates how efficient the company is at generating profits from its revenue. 

    The US Tech companies’ average operating margin growth are -17.82% (1Y), -0.82% (3Y) and 1.00% (5Y) respectively. The operating margins of US tech companies appear to have maintained over the last three to five years. 

    On the other hand, Chinese Tech firms’ margins have fluctuated quite drastically over the past few years. This could be partly attributed to the hefty fines which affected their operating margin. 

    The management of the US Tech firms appears to have been more successful with managing the margins better. The ability to maintain consistently at about ~20% is not an easy feat.

    Winner: US Tech Firms

    Quantitative Factor #3: Price/Equity Ratio

    Thirdly, we shall look into their Price-to-Equity ratio. This is a good indicator for profitable companies. It gives an indication of what investors are willing to pay for current and prospective growth of the company. If a company is trading at a high P/E ratio, this means that investors have high hopes for its future earnings. 

    The US Tech companies’ average P/E ratios are 35.15 (3Y) and 35.68 (5Y) respectively. The current average P/E for US Tech companies is at 32.52. 

    However, the Chinese Tech companies’ average P/E ratios are at 17.92 (3Y) and 34.59 (5Y) respectively. The current average P/E for Chinese Tech companies is at 3.5. 

    In conclusion, the current P/E valuation for 3 year and 5 year averages points to Chinese Tech being more undervalued. It is trading generally 80% lower than its 3 year average. 

    Winner: Chinese Tech Firms

    Quantitative Factor #4: Price/Sales Ratio

    Lastly, we shall look into their Price-to-Sales ratio. This is a good indicator for growth and non-profitable companies. It gives an indication of what investors are willing to pay for prospective growth of the company. If a company is trading at a high P/S ratio, this means that investors have high hopes for its future revenue sales. 

    The US Tech companies’ average P/S ratios are 6.94 (3Y) and 6.40 (5Y) respectively. The current average P/E for US Tech companies is at 4.80. 

    The China Tech companies’ average P/S ratios are 3.86 (3Y) and 4.19 (5Y) respectively. The current average P/E for China Tech companies is at 2.60. 

    In totality, current P/S valuation for 3 year and 5 year averages points to US and China Tech being evenly undervalued. It is trading generally 40% lower than its 3 year average. 

    Winner: Breakeven

    Conclusion

    In conclusion, which country tech firms should you focus in 2023 depends on your investing horizon. For a short-term reversal play, investing now into the Chinese Tech Firms could be a good opportunity. However, there will always be regulatory pressure which Chinese investors should be well aware of. Considering the current economic climate, investing in US tech may be a wise decision for those looking for long-term growth. Finally, before you invest into either, please do sufficient research into their individual products and services before making any decisions. 

    In addition, if you do like the finance matters we share, check out our other latest articles. Trust Bank Referral, HSBC Account and Credit Card Deals and The Battle of the Digital Banks.

    Disclaimer: The information provided by LearnToInvest serves as an educational piece and is not intended to be personalized investment advice. ​Readers should always do their own due diligence and consider their financial goals before the usage of these products. We do not offer any warranty or assurance regarding the quality of these services or goods.

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  • The Battle of The Digital Banks: GXS Bank and Trust Bank

    Digital Bank? What is a digital bank, you may ask…

    A simple take of what Digital Bank is: A Digital Bank offers the same type of banking services as a traditional bank except it operates entirely online without any single physical infrastructure, such as a bank branch.

    To some who do not know, in the late 2022s, there are 2 digital banks which have established their presence in the banking world. Most notably, GXS Bank and Trust Bank which have no minimum balance and attractive interest rates that accrue daily!

    How Safe are Digital Banks?

    To the skeptics of digital banks, Digital banks also have the same deposit protection as traditional banks. They too are part of the Singapore Deposit Insurance Corporation’s (SDIC) Deposit Insurance (DI) Scheme.

    Under the DI Scheme, if any of the member bank or finance company fails, all of the insured deposits are insured up to S$75,000 by the SDIC. The digital banks listed in this article have met all relevant requirements and licensing preconditions before MAS grants them their respective banking licenses. Thus, rest assured.

    TL;DR: Best Digital Bank Accounts (2022)

    tl;dr best digital banks

    Trust Bank

    First, let’s talk about Trust Bank. It is a digital bank backed by Standard Chartered and FairPrice Group. 

    1. Download “Trust Bank SG
    2. Use our referral code – F09VXCHE (you gotta type it out)
    3. Sign Up through Savings Account (Savings Account will be instant)
    4. There you go, a $10 NTUC Voucher in your Rewards (Coupons)
    5. Click here to find out how to get the extra $25 NTUC voucher!

    Trust Bank Savings Account Interest Rates

    The interest in Trust Savings Account is accrued daily and credited at the end of the month.

    Benefits of Trust Bank

    • No minimum balance required.
    • Regulated by Singapore Deposit Insurance Corporation (SDIC) up to $75,000
    • Savings Account: Base 1% interest on the first $50,000 of deposits
    • Security Feature – ‘Lock’ your card if it is misplaced

    GXS Bank

    Founded by Grab and Singtel, GXS Bank is one of the first 2 digital banks to be serving retail customers.

    While we can download the GXS digital bank app now, you won’t be able to use it just yet as the service is currently by invite only.

    As of the time of writing, my account has yet to be approved by GXS Bank. As mentioned, the bank’s services will be rolled out progressively to consumers starting with selected employees and underbanked customers within the GXS, Grab and Singtel ecosystem. Hence, this might take a while so do take note.

    GXS currently offers a savings account as its sole product. However, they offer some pretty attractive interest rates with future benefits when you spend on Grab and Singtel Dash.

    GXS Savings Account Interest Rates

    The best part is these returns are credited to your account daily so you can take advantage of compound interest.

    Benefits of GXS Savings Account

    • No minimum balance required.
    • Singapore Deposit Insurance Corporation (SDIC) up to $75,000
    • Withdraw any time from the Savings Pocket
    • No Fees

    Our Stand

    Should You Consider Opening An Account with A Digital Bank?

    Simple answer, yes. If you own a savings account with a traditional bank, definitely.

    What do you think is the first thing all of us will look?

    Without a doubt, interest rates offered.

    GXS offers interest up to 3.48% while Trust Bank offers up to 2.5%. 

    Source: Seedly

    Honestly, GXS Bank and Trust Bank offer pretty competitive interest rates compared to the realistic interest Seedly has set out. I personally believe that digital banks are great secondary accounts you can take advantage of. Ultimately, we personally think that Trust Bank is the superior one at the time of writing given how majority of the people are able to use it compared to GXS Bank.

    Moreover, you should stay tuned for the rest of the digital banks coming up such as Sea’s Maribank, Ant’s Group Anext Bank and Green Link Digital Bank.

    In addition, if you do like the finance matters we share, check out our other latest articles. Trust Bank Referral, Standard Chartered Credit Card Deals and Putting together a Financial plan for 2023

    Disclaimer: The information provided by LearnToInvest serves as an educational piece and is not intended to be personalized investment advice. ​Readers should always do their own due diligence and consider their financial goals before the usage of these products. We do not offer any warranty or assurance regarding the quality of these services or goods.

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  • How crazy is Cristiano Ronaldo salary at his new club – Al Nassr?

    Cristiano Ronaldo is once again in the news. But guess, what is it for now? Yes, Cristiano Ronaldo broke another record once again. The debate of who is the GOAT is a topic for another day.

    Source: Daily Sabah

    Do you know? The Portuguese’s striker’s deal with Saudi Pro Lego will run for 2-and-a-half years through to June 2025. 

    Thus, how much do you think he is earning a year?

    Cristiano Ronaldo’s Wage

    CBS Sports reported that the former Real Madrid and Juventus superstar will receive £62m for playing football and £111m for commercial deals and image rights. Hence, this equates to a total of £173m at his new club.

    pounds to sgd conversion
    Source: Google

    A recent conversion I did of £173m = SGD 280,000,000 approximately.

    Hence, to put this into perspective how much he is making.

    1 year: SGD 280 Million

    1 month: SGD 23.33 Million

    1 week: SGD 5.83 Million

    1 day: SGD 833,333.33

    1 hour: SGD 34,722.22

    1 min: SGD 578.70

    1 sec: SGD 9.65

    How crazy is Cristiano Ronaldo’s salary?

    How crazy is that? This crazy amount is considering he is working 24/7. Which obviously he doesn’t!

    While, if you actually count the amount of minutes he actually plays soccer. It will be even more crazy for each minute he is playing on the pitch.

    Having said that, he is making SGD 833,33.33 in a day. 

    singapore hdb flats
    Source: PropertyGuru

    Imagine being able to fully pay a HDB every single day in cash.

    That’s how much he is earning…crazy…

    For some of us, we take our whole lives to even buy a HDB, and on the other side of earth, one is able to buy in a day!

    Our Stand

    Life is not fair, and never fair. Thus, what we can do is make the best out of it. There is no point constantly comparing each other’s salaries. Personally, we feel being happy is something no amount of money is able to justify. Hence, just enjoy your life and embrace it.

    In addition, if you do like the finance matters we share, check out our other latest articles. Trust Bank Referral, CIMB Credit Card Deals and Putting together a Financial plan for 2023.

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  • Who are The Supreme Investors In The World?

    Who are the Supreme Investors? 

    It’s a legitimate question that many amateurs as well as experienced investors ask. 

    The answer is quite simple – they are the ones who have mastered the art of investing and have used their expertise to become successful investors. Today, we will be exploring who the Supreme Investors are, what skills they possess, and how you can learn from them. We will delve into the secrets of their success by looking at their strategies and tactics that have enabled them to become wealthy in a relatively short amount of time. So, if you’re looking for some new ideas on how to invest your hard-earned money more wisely, then this blog post is for you!

    Benjamin Graham

    Benjamin graham

    Benjamin Graham is considered by many to be the father of value investing. He was born in 1894 and began his career as a journalist before moving to Wall Street. In 1926, he founded the firm Graham-Newman Corporation, where he employed a value investing strategy.

    Graham’s investment philosophy is centered on the idea of finding stocks that are trading for less than their intrinsic value. He believed that if you could buy a stock for less than its true worth, you would be able to make a profit in the long run.

    Graham’s ideas have influenced some of the most successful investors of all time, including Warren Buffett.

    Jesse Livermore

    jesse livermore
    Source: Youtube

    Jesse Livermore was one of the most successful traders of his time. He made a fortune in the stock market by correctly anticipating market movements and then acting on his predictions.

    Livermore began his career as a runner on the floor of the New York Stock Exchange. He quickly developed a keen sense for spotting market trends and soon began making trades himself. Over the years, he honed his skills and became one of the most respected traders in the business.

    While Livermore did suffer some major losses during his career, he always managed to come back stronger. In fact, it was these losses that taught him some of his most valuable lessons about risk management.

    Today, Livermore is considered one of the greatest traders of all time. His story is an inspiration to anyone who wants to make a success of themselves in the financial markets.

    Peter Lynch

    peter lynch

    Peter Lynch is an American Investor, former stockbroker, and mutual fund manager. As of January 2019, he is a research director at Fidelity Investments. He is the author of several books on investing, including “One Up On Wall Street” and “Beating The Street”.

    Lynch made his name as a stock picker during his thirteen years as portfolio manager of the Magellan Fund at Fidelity Investments, where he averaged a 29.2% annual return before retiring in 1990. His investment philosophy, which stresses finding companies with strong fundamentals that are undervalued by the market, has been influential for many individual investors and money managers.

    George Soros

    george soros

    George Soros is one of the most successful investors in the world. He is known for his investment in hedge funds and his philanthropy.

    Soros was born in Hungary and escaped the Nazi occupation of Hungary during World War II. He later moved to the United Kingdom, where he studied at the London School of Economics. After graduation, he began his career in finance.

    In 1992, Soros made headlines when he bet against the British pound and earned a billion dollars in profits. He is also known for his philanthropy, donating billions of dollars to causes such as human rights, education, and public health.

    Warren Buffett

    warren buffett
    Source: Barrons

    Warren Buffett is one of the most successful investors in history. He is the chairman, CEO, and largest shareholder of Berkshire Hathaway, a conglomerate holding company with interests in a variety of businesses.

    Buffett is known for his value investing philosophy, which he has applied to his investing strategy with great success. He is also known for his simple and folksy style, as well as his wit and wisdom.

    Buffett has been consistently ranked among the world’s wealthiest people, and he is currently the second-richest person in the world with a net worth of over $82 billion.

    Conclusion

    The Supreme Investors are a group of successful and experienced investors who have come together to share their knowledge, experience and resources in order to help others achieve financial freedom. 

    There is no hard and fast rule in investing. It is more of a journey for you to understand yourself with money as an intermediary. Thus, as what many will say, “Invest in companies which you can sleep well”.

    Through their innovative approach, they can provide guidance and assistance for those looking to invest wisely and responsibly. Whether you’re just starting out on your journey or if you’ve been investing for years, the insights offered by The Supreme Investors can be invaluable as you strive towards success with your investments. 

    If you are keen, check out our other latest articles. Trust Bank ReferralPutting together a Robust Financial Plan for 2023 and Best 2023 Citibank credit card deals

    Disclaimer: The information provided by LearnToInvest serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock. All views expressed in the article are the independent opinions of Learn To Invest. 

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  • Putting Together A Robust Financial Plan For 2023

    It’s no secret that financial planning is an essential part of achieving a secure future. But having a plan in place can also be a great way to reach your goals in the near future. With 2023 quickly approaching, now is the perfect time to start putting together a financial plan. This will enable you to have a roadmap to potentially achieve your goals and lead you to success. I am sure this is not a foreign topic to many. Financial planners and insurance agents frequently begin their conversations with this subject.

    Some may ask, how necessary is it for one to put together a financial plan?

    If you want to be successful in life, it’s important to have a financial plan. A financial plan will help you set goals and track your progress. It will also help you make informed decisions about your money.

    Without a financial plan, it’s easy to make impulse purchases or decisions that are not in your best interest. A financial plan can help you avoid these mistakes and stay on track with your goals. A financial plan can also help you during tough times. This is especially true in times when you experience a job loss or unexpected medical bills. Having a plan in place will give you peace of mind and help you weather any storms that come your way.

     In this blog post, we’ll discuss how to create an effective financial plan for 2023 that covers all areas of your life. We’ll look at creating budgets across different aspects. Savings goals, Investing wisely, Purchasing insurance so that you can maximise your chances of success in the coming year.

    #Step 1 in Financial Plan: Track your current Net worth

    #Step 1 in Financial Plan: Track your current Net worth

    For anyone that is new to financial planning, you should first track your current net worth. This provides you with a snapshot of your current financial health while mapping out your financial strategy. 

    To calculate your net worth, it is the summation of all your assets and then subtracting any outstanding debts. All forms of savings, financial investments, and real estate are considered assets. On the other hand, debts refers to any financial liabilities to banks or creditors. Consolidating all these together will provide you a clearer snapshot of your current financial health.

    If you haven’t already done that, you’re in luck. Below is a Stock and Assets Template that we have created for our readers. Feel free to duplicate a copy to start tracking your assets and calculate your net worth. In addition, if you find our template to be extremely helpful, please follow us. Both our Instagram or Telegram shares any updates on new templates and articles.

    #Step 2 in Financial Plan: Set your Financial Goal for 2023

    #Step 2 in Financial Plan: Set your Financial Goal for 2023

    Next would be setting tangible and realistic financial goals for 2023. Depending on each person’s needs and the different stages of their lives, these goals may vary. Savings for a holiday, clearing off debt, or investing for retirement may be preferred by some.

    Hence, I would advise people to break down their financial goals into different categories and across different timelines. This is because some goals may be short-term (within a year), whereas others may span over a number of years.

    Below is an example of my financial goals for 2023:

    #Step 3 in Financial Plan: Develop a Budget

    #Step 3 in Financial Plan: Develop a Budget

    The next stage would be to keep tabs on your monthly earnings and spendings in order to create a budget. This budget will allow you to stay on track with your financial goals that you set in Step 2. 

    For tracking of spendings, there are a couple of good applications which include Spendee, Planner Bee, Seedly and more. You can check out this article written by Planner Bee which shares the best budgeting apps to manage their expenses. Personally, I have used Spendee for tracking my monthly expenses for more than two years now. My current monthly spending is estimated to be at around $1.5K.

    In Singapore, the median monthly income for Singaporeans recently rose to S$5,070 in 2022. This will translate to a take-home pay of S$4,056 after CPF contributions. This will translate into an average monthly savings of roughly S$2.5K when my expenses are subtracted.

    Given my average monthly savings of S$2.5K, this is in-line with both my short and long-term financial goal. As a result, my objective will be to monitor my monthly expenditure and ensure that it stays within my budget.

    #Step 4 in Financial Plan: Invest wisely in 2023

    For many investors, 2022 has been incredibly overwhelming and life changing. This is a stark contrast to 2021, when the equity market is experiencing a bull market. As a result of experiencing both market circumstances, many investors have had to reconsider their investing approach. Saving Bonds and Treasury Bills have become a popular form of investment for many singaporeans.

    Here are a few general investing tips that could be helpful as you approach 2023:

    1. Review and update your investment strategy: Take this time to review your current investment holdings. Ensure that it is aligned with your financial goals which in my case is Achieving a $1M retirement sum. Do check out our past article on how to prepare your portfolio in times of recession
    1. Manage risk and investment timeline: It is crucial to carefully consider the risk and rewards for any investment. Depending on your risk appetite, choose the investment classes that best suit you. Lastly, do research on any investment opportunity before investing in them. Click here to check out our analysis on equities, REITs and banks in SG, HK and US markets.

    #Step 5 in Financial Plan: Protect yourself and your family

    Lastly, to end off your financial goals would be to understand your current insurance requirements. There are numerous insurance options, and the best combination will depend on your particular situation. The following are a few of the most popular types of insurance:

    1. Health / Hospitalisation Insurance
    2. Life Insurance
    3. Disability / Critical Illness Insurance

    It’s important to review your coverage periodically to make sure it still meets your needs. As your life changes, so do your insurance needs. For example, you may need to adjust your life insurance coverage if you have a baby or get married. Or if you start working from home, you may be able to reduce your auto or homeowners insurance rates.

    It’s crucial to frequently assess your coverage to make sure it still satisfies your needs. Your insurance requirements alter as you enter different phases of life. If you have a child or get married, for instance, you might need to change your life insurance policy. You could even remove your vehicle or home insurance as many of us are now working remotely.

    Our Stand

    Developing a financial plan for 2023 can seem like an intimidating task. However, with some careful consideration and research you can easily create a plan that meets your needs. By setting goals, budgeting wisely, taking advantage of investment opportunities, and staying informed about the state of your finances, you will have taken important steps towards achieving your financial objectives in 2023. If you feel overwhelmed or unsure how to start creating a financial plan for the year ahead then it’s worth consulting a professional who can provide tailored advice and guidance.

    If you are keen, check out our other latest articles. Trust Bank Referral, How ChatGPT can change the world of copywriting and Best 2023 Citibank credit card deals

    Disclaimer: The information provided by LearnToInvest serves as an educational piece and is not intended to be personalised investment advice. ​Readers should always do their own due diligence and consider their financial goals before investing in any stock. All views expressed in the article are the independent opinions of Learn To Invest. 

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