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Sunday, February 11, 2018

Recent market correction and changes to portfolio

With the recent market correction due to the panic regarding increasing bond yield, it seems like a great shopping opportunity for any counter that has been oversold. I imagine this probably applies to both long term investments and trading opportunities. I made a small amount recently from trading with thanks to this. :)

There are some who has concluded we are ready for a rebound and continuation of the rebound, and there are others who thinks this is just the very start of a bear market. Myself? I think it could be either and one should have the game plan to adapt to and take advantage to both situations.

Being someone inclined towards building passive income more so, I lean towards buying sustainable high-yielding stocks and increasing defensive positions, but not fully digging into my available funds so that I may still take advantage of any market crashes.

To de-risk my existing position, I have decided to let go Asian Pay TV Trust and have the funds in kept in my warchest first. While I have only held onto to it for a quarter of dividend, at least I did not lose money over this. Short of a market crash bringing even better buying opportunities, it is going to be a challenge to figure out how to meet my target yield of 8%+. This brings my income portfolio down to 6.8% (SGD 1150) per annum. I should figure out how to bring this up to 7.2% - 7.5% per annum.

After some consideration between several stocks in my shortlist and this event as a catalyst, I also initiated a position in Singtel (3000 units) with my CPFIS-OA, as I anticipate it will allow this portion of my funds to beat CPF-OA returns from both capital gains and dividends. Given the purpose of the CPF and my current available savings in CPF-OA, I am not comfortable with putting money into the other stocks I have considered.

Have your own game plan to share regarding the recent market correction or your strategy? Please feel free to do so in the comment section! :)

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