atans1

When ST headline is bullish, time to sell?

In Financial competency, Property, Reits on 11/02/2013 at 9:33 am

In SunT, the headline screamed,”Market risks ‘seem less threatening this year'”. Oh, dear. If ST reporters and editors are getting less cautious, isn’t this a contrarian sign. Maybe? But to be fair the forecast was made by a UOB Asset Management executive.

So far, as well documented here, I’ve been emphasising buying stocks with sustainable dividends or payouts, decent yields (slightly above our 5% inflation rate), with the possibility of capital appreciation. I’ve been long on smaller cap S-Reits that have tai-kors with money for several yrs. I’m not a buyer at these levels, but neither am I a seller. I’m a nervous holder. Until you cash out, the profits can evaporate. Taz why good, sustainable yields are important. But that means taking on more risk: Reits are not a play safe investment. Their gearing and the requirement to pay out 90% of their earnings, could result in investors coughing up in rights issue more than they got in payouts. Taz the reason for my nervousness.

Stocks on my watch list are SBS and SMRT. But they’ve been on my to buy watch list for three years already.

 

 

 

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  1. I really don’t understand why you even bother with the SGX. It’s already deader than a stuffed horse. Why not put in the same effort in NYSE or the new German stock market. Better return on energy? No?

    • And spend more effort, time and money hedging against currency differences? Thanks but no thank you.

      • And dotseng seems to be one of those ang moh tua kee types. S’pore mkt while not as hot as Thailand, Philippines was a lot hotter than the mkts he mentioned. LOL

  2. Sound advice,those who are in market be careful!

  3. Like I said since 2009, golden age here. Now a bit stale. But still got golden age till 2025. Those who cannot hold better tighten your stops, or go overseas.
    Caveat: If you see more ministers retiring and joining their grandchildren overseas, start selling.

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