Fed hiked interest rate. So what happens next?

FED benchmark interest rate has been increased to 0.5 to 0.75% and is projected to go up 3 times each year till 2019.

3 interest rates in 2017, 2018 & 2019 by dot plots

0.5 to 0.75 in dec 2016 (risk-free rate hovers 2.5 to 2.6%)

1.25 to 1.5 in 2017

2 to 2.25 in 2018 

2.75 to 3 in 2019

risk-free rate will be at least 5.25% in 2019

Fed median interest rate projections:

As expected, fed hiked by 0.25% in De 2016 but made a slightly hawkish statement about further interest rate hikes.

http://sg-stock.blogspot.sg/2016/12/market-mover-for-next-week-fed-meeting.html

If FED really hikes 3x interest rates each year, we'll be having high interest rates in the future as predicted in our previous post.

http://sg-stock.blogspot.sg/2016/11/high-interest-rate-environment-is-coming.html

Japanese nuke food!

Japanese nuke food contains caesium 137 and 134 because of the nuclear reactor meltdown.

137 has a half-life of about 30 years and 134 is about 2 years.

https://en.wikipedia.org/wiki/Caesium-137

https://en.wikipedia.org/wiki/Isotopes_of_caesium#Caesium-134

Basically, this means that 137 will decay by half in 30 years and 134 in 2 years.  Therefore, 137 takes 60 years to completely disappear and 134 takes 4 years.  The shorter the half-life, the less harmful it is to your body and environment.

These radiations will permeate your body and destroy your DNA structures.  This is how harmful nuke food is to your body.

Singapore stock calls for 14 December 2016

Singaporeans are apathetic about our political situation.

Yes, we will be building the HSR with Malaysia.  However, we are only aware of the total distance and total cost of connecting from KL to SG.  What we do not know is how many KMs is under SG liability and how much we are paying for the distance under our liability.   Our citizens do not bother to know and do not ask our government about this.

Geographically and ideally, we should be only paying for a small portion for this KL-SG HSR because each country should be responsible for its HSR construction in its terrority.  Hopefully our government will let us know more about this HSR construction instead of just quoting the total distance and total cost.  The latest information is SG will only be responsible for 15km on our land and KL is responsible for 335km on its land.  What is the cost for this 15km on our land compared to 335km on Malaysia's land?

World trade war will begin soon if WTO doesn't grant China market economy status.

When WTO signed on the dotted line to grant China market economy status automatically without any string attached after 15 years upon joining WTO, WTO must honour its contract or else it will become untrustworthy internationally.  Who else will trust EU, USA and Japan in the future?

Singapore stock calls for 13 December 2016

Singapore stock calls for 12 December 2016

The world will be in chaos if Trump doesn't stick to one china policy!

http://news.asiaone.com/news/asia/chinese-media-hit-out-trump-over-one-china-comments

World economies will crash because China will become anti-USA if Trump forsakes the one china policy.  China will go against USA economically and politically in retaliation.

Food alert in Taiwan!

http://news.asiaone.com/news/asia/nuke-food-already-taiwan

Nude....Opps....I mean NUKE food is in Taiwan now!  Japan is lying to its citizens and foreigners about its food and it is false labelling its food production origins.  This is what Japan government is like.....whitewashing its war history and false labelling its food.

This is definitely not an asteroid breaking up into smaller pieces in the sky!

Asteroid doesn't break up like this and the smaller pieces won't circle around the main asteroid after breaking up.

Who says DUCKS cannot learn how to fall in?

Samsung S6 caught fire on china flight.

http://www.straitstimes.com/asia/east-asia/samsung-s6-phone-emits-smoke-on-china-airlines-flight

Be careful when you use Samsung and Apple.  Both brands are like miniature explosive devices now.

Vietnam is doing construction on South China Sea reef but no country is condemning it!

https://sg.news.yahoo.com/satellite-images-appear-show-vietnam-dredging-disputed-reef-044309502.html

If we are supportive of a rule-based system, we must condemn any country that seeks to increase tension in South China Sea.  Why are we only condemning China but condoning other countries to do constructions on the reef or isle?

This only shows that we are only targeting China. No wonder China is unhappy!

Baltic dry index - 1090

Today, Friday, December 09 2016, the Baltic Dry Index decreased by 32 points, reaching 1090 points.

Baltic Dry Index is compiled by the London-based Baltic Exchange and covers prices for transported cargo such as coal, grain and iron ore. The index is based on a daily survey of agents all over the world. Baltic Dry hit a temporary peak on May 20, 2008, when the index hit 11,793. The lowest level ever reached was on Wednesday the 10th of February 2016, when the index dropped to 290 points.

US rig count - 624

HOUSTON (AP) -- The number of rigs exploring for oil and natural gas in the U.S. increased by 27 this week to 624.

A year ago, 709 rigs were active. Depressed energy prices have curtailed exploration, although the rig count has been rising in recent weeks.

Houston oilfield services company Baker Hughes Inc. said Friday that 498 rigs sought oil and 125 explored for natural gas this week. One was listed as miscellaneous.

Texas gained 17 rigs, Colorado increased by six, Wyoming gained three, Pennsylvania increased by two and Arkansas, Kansas, New Mexico and North Dakota each gained one.

Alaska, Louisiana and Oklahoma each declined by one.

California, Ohio, Utah and West Virginia were unchanged.

The U.S. rig count peaked at 4,530 in 1981. It bottomed out in May at 404.

Market mover for next week - FED Meeting!

A quarter point hike in interest rate is expected for next week FED meeting.  Conversely, if there is a surprising move like a 50bp hike or a statement to denote a hawkish stance instead of a gradual rise in interest rates in 2017, stock markets will react negatively.

Please watch out for FED outcome and align your investment decision to the result.

It's official! SK president Park has been impeached.

http://time.com/4596318/south-korea-president-impeachment-park-geun-hye-corruption-choi-soon-sil-protests/

President Park has lost her presidential power. She cannot implement and execute anything in South Korea now.

We had predicted this outcome in our previous post.

China is supposed to gain market economy status after 15 years upon joining WTO.

http://english.cri.cn/12394/2016/12/09/3521s946895.htm

WTO members signed the covenant to grant China market economy status automatically after 15 years upon joining WTO.  If WTO members don't grant China the market economy status, they're showing the world their non-credibility and despicability because they don't honour the contract they sign.

Japan has shown that it is non-credible and despicable because it won't honour the contract it signs.  Let's see who are non-trustworthy in WTO.

Singapore stock calls for 9 December 2016

How will Singapore economy perform in 2017?

http://www.businesstimes.com.sg/government-economy/nomura-sounds-bearish-call-on-spore-economy-cuts-2017-gdp-growth-forecast

Nomura predicted that SG's economy will grow by 0.7% in 2017 which is far below the 1-3% predicted by our government.

However, Deutsche predicts that SG will grow by 2.3% in 2017.

http://business.asiaone.com/news/singapore-economy-could-expand-23-2017-deutsche-bank

Who is correct?

I think Deutsche is too optimistic on SG without an in-depth understanding of the surrounding economic situations.  Pakistan port has started operations and will reduce port cargoes to SG which has never existed before.   Furthermore, interest rates will be higher in 2017 and this will increase business costs.  Last but not least, asian currencies depreciation will create inflations in Asia.

I just can't see how SG will perform so well in 2017 with 2.3% growth when there's so many negative factors.