Relative Performance is like a bitch but I like it. Keeps me on my toes. There is also a deep secret which I have been studying for some time that is to use it to do re-balance between STI ETF against my portfolio. That way I could theoretically increase my odds to beat Strait Times Index.
Using Cory Barometer above, the gap is widening so maybe good time to plunge into STI ETF. However, Uncle scare scare. Almost try DBS but also scare scare. Okay okay. How about buying back Mapletree Ind Tr ? Also scare .... glad that I raised some cash.
In the end, Cory Gene Strategy : Freeze..... ( Think I am crazy ? Ignore me )
Cory
2019-0513
The market currently in upheaval due to recent Trade Issues. During this period I do some adjustment and manage to raise 6 figures warchest from recent sales in my trading account. The exercise is more of re-balance with more net cash. JD.com and SIA no longer in my portfolio. I have no plan to tap on bank cash which will be reserved.
Currently Xirr : 10.7% for my portfolio. Profits yield is slightly lower at 9.7% due to realised gains before year ended. STI came down to 6.5% quite furiously which is about 8.5% after dividends using STI ETF as a reference. Total dividend collected so far 17K.
Reits/Trusts - Still surprisingly resilient in the face of trade war. Applying same logic's of CMT onto Ascendas-Tr and Ascendas Reits taking some profits off the table, they are smaller today but still pack a punch. I am still looking for opportunity to boost my dividends which currently stand at potential 43K max now. I like to end up with 50k potential by year end.
For the current negotiation, I still believe in human minds prevail, an acceptable agreement will be reached. Since is initiated by USA, is definitely will favor them. The world trade is based on USD. The Consumption power house is in US. There is limited option for the Chinese. This could still end up favorable to Mexico and SE-Asian countries as we will be more involve in production export to America. Therefore good for our industrial assets.
Cory
2019-0509
This is the concept I have termed which trying to grasp. A number of us understand not to fall into the trap of price anchoring. What this mean is that there is a believe of specific price of a stock that one is familiar without consideration of fundamental or market changes.
This often happens when one buy a stock and will not sell even when fundamental has weakened and continues to assume the price will return to purchase price or higher.
Yield Anchoring is more for dividend investor. Say we use to buy CMT at 5.8% yield. Today the stock price is trading at 4.8% yield, one may view as too expensive. Should we sell CMT ? Can we buy CMT ?
If I am to go through logical thought process. Few things come into my mind.
1. Business Fundamental
Can DPU maintains? Can it grow?
2. Alternative investment
Alternative investment that gives better yield for similar risk ?
3. Risks
Is my personal situation or macro environment considerations.
If we are to think through carefully above, there maybe time I could refuse to buy CMT at 5.8% yield but later on could be all willing to purchase at 4.8% !
In current market condition, Interests rate are low. I could view CMT providing stable 4.8% yield for next couple of years with potential of DPU growth. The view that CMT Malls Business are vibrant and domineering leadership in the market. Relatively low gearing which could avoid loan liquidity issue if there are recession. And with property curbs .... investment limited.
This may explains why selected performing Reits and Trusts do well even under trying condition of the market. Will it change ? Sure does. So we need to monitor but usually is not a overnight thing except Trump tweets .....
Cory
2090509
