Fact is Bond interests are in few percentage points only. If we do trading on them, we are going to waste away the marginal returns. When we put into equity, how confident are we to beat the cost and the dynamic of the markets. Will this further accelerate our losses if the market suddenly turn negative ?
Let's go back to basic on Cory bond investments. To provide a damping effect so that he can sleep well. In addition to provide baseline returns. In yesterday onslaught, portfolios turns 5% negative which compared far better than STI 13% negative range.
Ofcourse Reits come to the rescue too which managed to retard the deceleration better than many other stocks.
So if Cory is to be greedy, he needs to be in better footing which Safe Bonds can provide. Warchest and saving should be better options to expand the investment to tap on rising market. When this happen, Portfolio bonds percentage will naturally go down.
The next question is, are we in rising Market?
This is Billions dollar question. Cory do not have good answer. Probably should Jeep slowly across the period of weeks and months. Make sense ? One thing for sure, is a good thing to happen so that he can increase his dividends with lower cost !
Cory
2020-0310
Can share whether you are buying or selling your reits now? How about our local banks? I own reits and banks like you. Thks.
ReplyDeleteI sold most of my Ascendas reits weeks ago. I say weeks because I can't remember exact today as I have to check records which I left at home. I have zero MIT reit. I have zero ascott too. They are all my prized profits in 2019. Reason I sold them is because I earn quite an amount from them and I think their room to gain is lesser. This helps to cover bank recent losses and build up warchest. Trading Banks are much harder for me. I am buying reits slowly now. Not banks as I have enough and because I have STI etf. Ofcourse new purchases are in red generally so is quite hard to time so I would just spread my purchases thinly many times across weeks and months as I said earlier. The key is the reits must be sufficient quality and help to hit my 60k annual dividend goal.
DeleteBuying or selling your reits? How about our local banks? Like you, I own reits and the local banks. Any advice?
ReplyDeleteBanks if we do not have enough I would buy some through multiple purchases across weeks. Depends on portfolio. As I need to risk adjust my bank and etf allocation I won't add more till I have enough reits to drive some stable dividends.At this point of time, unless we have lousy reits, no point to sell them. We should accumulate instead. That's what I do. ofcourse I believe I do not have lousy REITs just lower priced reits which is blessing in disguise for dividend players. Problem is we do not know how low it can go. So again spreading our purchases seem critical for me.
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