Saturday, 4 February 2017

Jan 2017

Hello!

My last post has been a while (in November). I did not manage to write a post in Dec due to the deadline of my assignments which was due over the new year. I’m glad it is over for now and I scored pretty well for one of the modules with full marks on the paper (been a while since I received full marks). While I am waiting for the results of the other module, I can concentrate on what matters ultimately, which is my financial journey.

December was the month in which we saw the increase of the FED interest rate to a range of0.5-0.75%. The 2nd of such hike in more than 10 years. January was a roller coaster ride with the inauguration of the 45th President of the United States. So much controversial news just in the first few days in office and we can only expect more of such news from him and his team for the next 4 years. The stock market did not go lowerbut made new highs instead. This certainly is an interesting period to be watching the market.

Closer to home, the Singapore consumer price rose for the first time in 2 years. This meant that the price of living has started to increase amidst a worsening economy. This only meant that life would only get tougher from this year onwards as the inflation rate rose to 0.2% (highest in 27 months). This coupled with the news of increased CPF retirement sum to $166K and increasing the re-employment age to 67 with the aim of raisingthe retirement age to 67 as well.

In my SG account: I was not closely monitoring the markets and it crept up without me. I was at fault for the failure to monitor the situation and increase my portfolio accordingly. That said, I will still continue to watch closely for any potential entry points to boost my portfolio with my extra cash from bonus and the upcoming Ang Bao.

In my US account: The oil market has been in a consolidation phase at around $50. This is good as I shorted a variation of the strangle on the market. Staying within the range of $50 is the best thing that can happen. I was contemplating selling off my stock position but decided to keep employing cost reduction strategies until I come back from my holiday in mid Feb.

My current SG holdings include:
1)      ACCORDIA GOLF TRUST 
2)      LIPPO MALLS INDO RETAIL TRUST 
3)      AIMS AMP CAP INDUSTRIAL REIT
Overall capital gain is  +5.33%
Overall P&L with dividend is +12.86%


Investing Wolf 

Disclaimer: This is not a recommendation to buy or sell any mentioned stocks or securities in this blog. 

2 comments:

  1. Hi Wolf,

    An all REITS portfolio- Do you find it risky?

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    Replies
    1. Hi Frowns,

      Thank you for your question.

      ACCORDIA GOLF TRUST is not a REIT. It is a business trust specializing in investments in golf courses, driving ranges, and golf course related assets in Japan.

      REITs usually hold a certain portion of their loans as fixed interest loans. This means that until they refinance their loans, the interest rate hikes will not affect them. Hence there is a degree of safety underneath those huge loans.

      Those in my portfolio also have relatively lower gearing ratio of <35%. Which means that they have a lower interest payment due to the lower loans they have to repay.

      Lastly, i only look for REITs with NAV <1. This would ensure that i would be buying them at a discount to their net value while receiving dividends regularly.

      Hope you find my insights useful. Do let me know if there are any questions.

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