Busy busy 3 weeks :-)

I got feedback from some of you that my last post was too serious and heavy going. Once in a while lah … especially whenever I reflect on our country’s competitiveness, I get concerned. Anyway this blog is back to our personal finance and life. So the last 3 weeks for me ….  has been busy and busy and busy = SELLING … LOL

If you remember one of my new year resolutions was to reduce the number of trades this year but I am starting on the wrong foot already. The recent climb in the share prices for some of my non-core stocks provided me an opportunity to cash out at little or no loss. Even for some core blue chips stocks, I also took profit in bite-size. Those of you who have been following my trades on Stockcafe would have noticed the recurring selling :-).

4 reasons:

(1) I am still not optimistic that the market will be much better this year. I am actually pessimistic. Nonetheless, I will not sell everything, I believe in being in the market through peaks and troughs. So, I basically just trimmed my portfolio and shaped it closer to what I want as an income investor.

(2) I want to rebuild my war chest which I consumed quite a bit in last Q of 2018. I am a firm believer that we need a war chest and stand ready to capitalise on opportunistic and irrational behaviour of Mr Market. It can happen anytime. Furthermore, the increase in the cap for SSB also mean that I can park more money there as emergency fund and war chest and yet earn decent returns.

(3) The recent increase in interest rate of my margin account to > 3% no longer provides sufficient incentive for me to adopt a hold strategy. So, I have been mainly selling stocks from my margin account.

(4) I like to reduce the number of stocks (I think I am too diversified) and switch from holding shares of individual companies to ETFs (my strategy to switch more to index). I have broadened my monthly regular investment to include Reits ETF now, on top of ABF SG Bond and STI ETF.

But in the midst of all these selling, I have also been selectively buying retail bonds and have been queuing daily to catch any fire sale. I bought ABF SG Bond in the open market to balance my index portfolio too after a buying spree on equity ETFs in Q4 2018 that pushed the scale too much towards equity. I will pen another blog on my index portfolio the next time.

So, how’s your 3 weeks in the market? Happy to receive your sharing and feedback on mine too.

Thanks, have a nice weekend and a great week ahead.

Regards,

Warriortan

 

 

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4 thoughts on “Busy busy 3 weeks :-)

  1. Ya, you have so much action that you’re always on my StocksCafe wall lol! Glad to know that the reason is because you want to streamline your investments. I’m sure that it will pay off when it’s time to review your portfolio again at the end of 2019.
    On a side note, any views on wanting to invest in overseas ETFs? I read somewhere that diversifying into other countries’ market could also help slightly boost your portfolio – in the long run, of course.

    Liked by 1 person

    1. I buy this – LION-PHILLIP S-REIT ETF mainly. I also hold some units in NikkoAM-Straits Trading Asia Ex Japan REIT ETF and Phillip SGX APAC Dividend Leaders REIT ETF for diversification beyond SG shores. I used to hold Vanguard Real Estate ETF (VNQ) too but the 30% withholding tax on dividends diminished the yields significantly. Hope this helps

      Like

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