Quick update - Aug 2020

Despite US market being in the cloud nine after a V-shaped rebound, the STI is still languishing. I have done a quick snapshot here on the top gainers and losers that I am holding currently so it's easy to recap later on.

Top losers % change Top gainers % change
Starhill Glb -40% Mapletree Logistics 50%
Silverlake axis -32% Prime US Reit 9%
First Reit -30% Yangzijiang  8%
ComfortDelgro -27% Ascott Residence Trust 7%
Singtel -27% Singapore Exchange 4%

The losers look damn bad. They are under retail sector, public transport and telcos which are sectors worst hit by the covid, thus the plunge in their share prices and dividends.
First REIT's plunge was due to the unsettled saga with its parent company Lippo Karawaci. 

Gainers are the ones who managed to hold their fort. A misstep post March's crash is that I sold majority of my MLT to take profits but I missed selling Ascott before it announces its dividend cut. I decreased my exposure to First Reit while maintaining exposure in the rest of my losers.

Just a recap on the post which I have written last year before the downturn happens. The answers to what makes us want to capitulate are none other than - wrong position sizing and under-diversification

When we miss these two investing crux, we may find it hard to sleep at night in peace. Given the lackluster performance of SG stocks, I attributed my peace of sleep now to my base of bonds - since no or minimal capital losses and have predictable returns.

"Long-term success in any endeavor requires two tasks: Getting something, and keeping it. 
Getting rich and staying rich. 
Getting market share and keeping market share."

That is the essence of money management. Whether it's in investing or business.

We often forgot to make hay when the sun shines. In other words, take profits in the good times.


Secondly, I am going into DCA because of the really low interest rates (savings acct 0.05%, FD at best 1%) offered by both banks and SSBs lately. Being lazy, I have signed up for the POSB RSP in Nikko AM bond fund and a REIT fund. I have no idea for how long will STI stay in the slump but with cycles, I believe the economy will eventually recover and boost the market again.

FYI, DBS bank is now having cashback (of sales charge) promotion for new set up of Invest-Saver plan till 31st Oct.

I also signed up for a new insurance plan under DBS to continue milking the 'bonus' interest rates of Multiplier account. 

Take note that if you sign up for an insurance to fulfill one of the criteria, it takes 2 months for the qualifying rate to be reflected. Darn.

Third update on US stocks trading.

I have recovered all my losses from my super bad trade and my account is now back in the green. Phew...

Cannot emphasize more how important is Stop Loss.

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