In such turbulent and uncertain markets, what should i do?

“Wa shit la.” , “Walao what is this Donald Trump trying to do this time?!” , “Huh?! More tariffs? They crazy ah?!”, “Siao liao what do i do?”.

These were intuitive words and thoughts that i have found myself evoking often the past few months, and i’m certain i’m not the only one who has reacted this way. Ever since May this year, our markets have been performing badly.

With so many macro and global factors like Brexit, the Trade War, increasing natural disasters, the increased likelihood of Germany going into recession, and “market indicators” signalling a downturn/recession is near, it is no wonder everyone is apprehensive, taking a defensive stance, and waiting to act.

Even though i have been overwhelmingly busy with my university life as well as my summer activities in campus, i am constantly worrying about my portfolio. To catch you up quickly, within the past 3 months my portfolio went from +2.5% to – 4%, and i am currently sitting on about SGD $2,000 unrealised loss. While this may seem like a small amount to sum, it is very huge to me as i am after all just a university student.

Nevertheless, i am glad that i did not panic sell last month when many others did, i managed to hold on to my more volatile counters like CDL until they reached a breakeven price before i sold them off. Recent buys of mine include Capitaland Retail China trust, which i sold off within 10 days for a small gain, Keppel Corp, which i unfortunately purchased at a price much more than the current market value, and Raffles Medical, which is a similar case to Keppel. In my opinion, we will not be seeing a recession as soon as we think, i trust my gut.. *gulps*.

My portfolio this year is vastly different from that of last year, my yield has sharply decreased as i am now holding on to only 1 REIT as compared to last year where i had about 4 to 5. Only now have i realized that i have shifted off from my track and goal of being a passive dividend investor.

Thus, my plan moving forward is to offload my current holdings as much as possible and reinvest them such that my portfolio is back to my desired weightage of 70% REITs. As i am positive that our market will see an upward trend soon, i will be holding on to my trailing counters and will sell them off upon reaching breakeven point. I am also contemplating stopping my monthly investments into the Nikko AM STI ETF as the returns have been so dismal and atrocious…

For an overview of my current portfolio as well as what i intend to purchase when the price is right,

My current holdings are:

  1. DBS
  2. UOB
  3. Singtel
  4. Keppel Corp
  5. Raffles Medical
  6. ManulifeReit USD

Clearly, these are blue chip and supposedly defensive stocks, however you may be surprised at what bad investments they turned out to be so far for me hahaha… looking at you Singtel, Keppel, Raffles Medical. Jokes aside, these 3 have great potential and upside in the long-run, and if i do not see a right price to offload them , i intend to keep them for the long-term

What is on my watchlist?

  1. Cache Logistics Trust
  2. CDL Hospitality Trust
  3. IREIT Global
  4. Sasseur Reit
  5. ST Engineering

Evidently, i do not intend to avoid the market uncertainty but instead have plans to face it head on and act when the price is right. Even if, touch wood, lets say we do face a bad downturn, i am certain i’ll be able to hold on to my counters for a good 3 to 5 years, as i am currently a 23 year old university students with no debts nor family to support yet.

As for personal finance, i am currently financing my daily expenses with my tuition revenue, which is about a mere $200 a month. This is in addition to the dividends coming from my 3.7% annual yield of my portfolio.

What about you guys? I would really like to hear what your action plan for investing is like moving forward in these times of uncertainty and turbulence.

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