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Wednesday, October 31, 2018

Fortune favors the bold

"Be bold when fear paralyses the market" - seems to be the running theme now in most of the financial blogs I am reading.

However, the thing is, if everyone is "boldly" exploiting the recent 20% correction in the STI, then who exactly are the "paralyzed" ones?

Relying on boldness in and of itself is probably unwise anyway.

It is like the wildebeests crossing crocodile infested rivers. Charging in head first is not always the best idea.  Relying on advice by so-called experts is also not optimal. 

No one can predict the depth of this correction. Too conservative and you may miss the boat. Too aggressive and you may go down with the ship. Everyone touts a mythical balance, but nobody knows how to define such "balance".  In short, the answer to the question "should you invest in the stock market now?" is "your guess is as good as mine".

As one of my favorite bloggers likes to say, a good strategy for me is not necessarily a good strategy for you. Always strive to do what you are comfortable with. Do not invest with money you need or can't afford to lose.  Always have a contingency plan.

That said, September and October saw a bit of an unhinged shopping spree on my part, motivated at least partially by an (irrational?) desire to fully deploy my war chest before the end of December.

Report card of purchases at end of Oct:

Share  No. of shares Average price Value (S$) Current Share Price P/L (%)
First REIT 20,000 1.24 24,883 1.18 -5.16%
Lippo Malls 100,000 0.26 26,087 0.235 -9.92%
OCBC 5000 10.63 53,297 10.64 -0.18%
AIMS AMP 40,400 1.34 54,318 1.35 0.41%
DBS 1000 23.43 23,509 23.28 -0.97%
Frasers Logistic Trust 30000 1.03 31,004 1.02 -1.30%

It is not that great obviously. Clearly some choices were speculative (read questionable) - Lippo Malls.  But overall, I am cautiously optimistic about FLT, AIMS, OCBC and DBS. In particular, DBS is now boasting a yield of 5%. If history is anything to go by, one should never pass up an opportunity to load up on a state-owned bank dishing out a generous 5% yield.

1 comment:

  1. Usually Blogs lack depth for serious learning. They are good for intellectual entertainment (in a good sense), announcements (again in good sense -- for example announcing some new ideas, new articles, new products), "general interests" reading. Not the case with your post though, really enjoyed it reading it and it held my attention all the way through!

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