Welcome

Welcome to my investment blog where I share with you my analysis of REITs in Singapore.

I hope that my investment philosophy will bring me a steady stream of income apart from my job. I am aiming for at least $3,000 per month which can sustain the current expenses of myself and my family.

Do enjoy reading my blog and post any comments that you have. I welcome them because it is a time to learn from each other.

When I am looking at investing in REIT, here are some of the guidelines that I am looking at. Feel free to comment on it. I am willing to listen to ideas.

-> at least 8% yield.
-> Price that is lower than its NAV.
-> Low gearing (if possible)
-> High secured NAV.

Current Dividend income is $3,300/month.

Monday, August 24, 2015

What a meltdown... Updating my current holdings

What a meltdown recently with the stock market especially REITs. For REIT investors like myself, we are sitting on pretty large paper losses. For me, my portfolio went down by 6%. Moreover, I purchased Accordia Golf Trust at $0.65 which is just before their meltdown so I am sitting on even more paper losses.

The reason for meltdown by now is all over the news. China's sudden devaluation of currency plus impending US interest rate hike. The former is a surprise to all of us and is a bigger whammy than the US interest rate hike.

Is there anything good that comes out of this? Well, yields are stronger now. There are more choices aka yields above 8% compared to the previous year with price-to-book value lower than one. But we won't know when price is going up again so you need to have holding power. If you are holding on to cash, good! Because every investment dollar can generate more income.

For me, I have holding power currently so I am not worried. Just that I am a bit paralyzed i.e. should I really sell after such a meltdown? What happens if I sell then it goes back up? I have to admit that I am not strong in this. In fact, very weak. If you have any comments or advice, please share. I need them at this time.

Holding on...

6 comments:

  1. Give more emphasis to technical analysis and charts. Us technical traders have been heavily shorting reits since more than a month ago when the office reits started breaking down on the long term trend lines. Reits have more to fall on the charts. It's not over yet.

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    Replies
    1. Hi Kenny,

      You mean if I learnt technical analysis and charts I will be able to detect what technical traders are doing?

      Delete
  2. My 2cents, determine your prefered style 1st, if u are mid term invester or short term trader.

    Investors invest time in market, cos fundamentals of stock are gd when u decided to buy.
    Traders time the market and leverage on probability and gd risk to reward ratio.

    Based on how you write your blog, i think u belong to former, income investor going for fixed high dividends rather than capital gains.

    ReplyDelete
    Replies
    1. Hi Tony,

      Yes I belong to the former. Still holding on for long term investment... And thanks for your comments and advice.

      Delete