Market today continues to plough into Reits euphoria. This pushes Portfolio to new high. The story seems to continue. However 2 things need to be cautious. G20 and Fed. Hopefully none will break this rising rhythm as I previously mentioned the gap between risk free rates such as SSB and stable returns of strong Reits. This is still hold true so far.
With money sitting in cash management account coupled with saving banks, opting to max out SSB is a growing option. But this could slow down my portfolio growth for years to come due to compounding effect. This logic holds true for people who sell most and took profits. Once we do that, coming back is aren't easy.
Investment is a long game. Portfolio growth is a priority. Unless we see cliff right in front of us, derailing may not be wise so one would prefer to stay invested. Right now earning is still coming in, continue monitoring. Wish me luck.
Cory
2019-0613
Straits Time Index has come down by 5.5% since my last bubble chart report on 5/2. That's -186 points. So investing in ETF is not that straight forward. Timing helps as previously mentioned.
With the recent correction, I have increased my stake in STI ETF. With corresponding profit taking in some of my REIT counters, ETF is now the largest counter. This can be easily observed from the bubble size.
Let's do a review of the Bubble Chart.
First the bad news.
1. Unlike past bubble chart, there aren't need t do Axis adjustment to fit higher earning. ( Due to risk adjusted )
2. Banks are still in doldrums .... . ( Trying to bottom fish )
3. STI ETF has come down due to large swing on the straits time index within a month. ( Average down )
Here's the good news
1. Reits / Trust profits have generally been moving upwards eclipsing STI ETF downward moves. Looks like it has stabilised.
2. Portfolio is generally performing which can be seen for the relatively lower profitability of bonds in the chart.
My Plan as mentioned earlier is to preserve the leading gap of my portfolio. Is working so far. Will continue to monitor. What's next. Something I need to figure out.
Here's the link for those who are interested in the progress of the Bubble chart for this year so far.
Cory
2019-0611
This is one of the interesting year where we have obvious divergence in the performance of a portfolio high in Reits (~50%) vs STI returns which has fallen to-date to 3.18%. With the much less possibility of Rates increase, the sentiment of Reits have been quite exciting this past week.
Clearly staying invested and believing in the positiveness of Reit so far, dividend investors have benefited a lot from the upwards move if we walk the talk. Nevertheless, we need to stay nimble and monitor the market. Trump has stated Mexico Tariffs is off. That's a relief.
As previous mentioned, I moved some funds to ensure portfolio higher returns gap "Be maintained" relative to STI Index such as with DBS and STI Index. So far they have stay relatively stagnant. I also raised fund when I close my FCT position. Again this is more opportunity base due to the spike and my speculative blood in me to try for capital gains. Don't do this unless you have 7 other Reits and Trusts like me. Grrrrrr....
Xirr hits higher to 11.6% partially helped by realised gains in FCT. The Actual profit is roughly 10.8% which gives me more (updated for privacy) profit this year. Overall the Portfolio is balanced in such a way that I can sleep better at night. With some spare cash, I am again looking for opportunity. I may decide to max my Singapore Saving Bond. We shall see.
Cheers
Cory
2019-0608
