Favourite reads this week (6-13 May)

Contributed by: Warriortan, #investforyourself

  1. My Thought Process When Selecting Reits

” I’ve been asked many times by readers on why I select a particular Reit. People asked me why I bought into Far East Hospitality Trust (FEHT) when all the fundamentals and share price did was to keep going down. The same was asked with Sabana Reit when I bought them previously. And the same was asked with Ireit. “

This has to stand out as the best article I read this week – thoughtful yet simple to follow and its personal the way I like it..

If you want to know more about Reit, try the following:

Or you prefer to attend a seminar: REITs Symposium 2017 (27 May 2017, Suntec)

2. I Stepped on Banana Skin and had a Bad Fall…with this REIT *Ouch*

“When I first started investing in Reits, I did not research the companies that I was going to invest in. I bought purely on the dividend yield. Below shows the price chart of this Reit that I invested in. My average price was $1.235 and I owned 16000 shares. Can you guess which Reit?”

It is always good to be reminded from time to time that there is always risks involved in all investment tools.

3. Passive index investing and the dislocation of value

“Now that the tsunami of money is flowing out of active investing and into passive investing, it introduces the risk of illiquidity and overcrowding. When everyone blindly throws money into something that blindly throws money into a pool of stocks regardless of price, it creates distortions in value and increases systemic risks should there be a rush for the exits.”

Nothing comes free nor is it perfect. There is always some downsides. However, I think index investing still has a place in everyone’s portfolio. I find it useful to take away the emotion part and receive the diversification required. I blogged my experience earlier, you can find it here.

4. This oil rebound is just another fake-out. Here’s where prices are really headed

” Crude oil prices have dropped sharply in recent weeks. Despite rebounding the past two days, the price spike can’t last. Here are three reasons why we could see prices fall significantly in the next six months.”

The volatility of oil is a great playground for traders. You need to have a big stomach for risk to be involved. Still interested – you can look at the following oil related ETFs:

  • United States Oil Fund
  • United States Natural Gas Fund
  • SPDR S&P Oil & Gas Explor & Prodtn ETF
  • Energy Select Sector SPDR ETF
  • United States 12 Month Oil

You can find more information about oil ETFs from this website

 

That’s all for this week, folks. Have a great weekend!

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