To those who were waiting for a market dip the past few weeks like myself were inevitably somewhat disappointed as further tapering did occur but it wasnt substantial enough to cause any market weakness or panic. When i realized the market was not gonna go south, i decided to snag up some shares that i thought could be good for my portfolio. Anyway, being cash rich makes me feel uncomfortable! I feel that the value of my money is eroding away when I put it in the bank & it bugs me.
Currently in 2Q14, I've decided to shift my portfolio away from REITs and into other shares mainly companies that are in net cash, in other words, minimal to zero debts. As interest rates are going up in the near future, companies holding onto cash/debt-less will be smiling and will be in a stronger position.
Whereas REITs will be feeling the pressure from the increase in interest rates as they need to refinance their loans and pay off existing debts.
Over the past 2 weeks, Ive picked up: Nam Lee, Kingsmen, Straco, Spindex, Valuetronics
Some even speculate that the stock market will dip during this world cup period as people are more interested watching 20+ men running after one soccer ball causing trading volume to thin out. Truth be told, the local SGX trading volume did decrease but i still see much support around and investors' sentiments are still high. According to history, trading volume thinning out can lead to BOTH up-market and down-market which brings us back to Square one where "nobody can predict the market direction". Hence, go bag some shares that you'll have no qualms keeping even if the market plunges south.
Recently, Dow Jones hit above 17,000 points and well, I really do think that global market shares are up-trending now as US gains back its momentum. Locally, our STI is currently tagged with a P/E of around 14 and that, to me seems to have a lot of potential going northwards. I would only think that worry should settle in when P/E hits (conservatively) around 18 or above 20.
18 June 2014
Consolidate & Wait
Lately, I have sold off 70% of my share holdings to realize gains and at the same time consolidate my portfolio. Realized my portfolio was getting a little too diverse that it becomes hard to monitor all at one go. Anyway, the fed tapering will most likely be happening again sometimes soon this month hence the move on my part to sell most of my positions and wait out. Hopefully the bond buying will be reduced once again causing the market to dip & I will dive in confidently to snap up some bargains. Til then, patience...
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