On a break

Marksman's Investment Corner is currently on a short break - expect activities to pick up from July 2018 onwards!

Are you for or against the merger between Alliance Minerals Assets Limited and Tawana Resources?

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! :)

No comments:

Post a Comment