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 :-).
(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.