Showing posts from May, 2017

Portfolio Returns

Bull Market, Buying Reits

It is a bull market this year, with STI (Strait Times Index) up 12.1% year-to-date.

Bull market implies, in general, more expensive valuation. I find that the current stock market are quite close to full-value and I expect lower returns down the road. 
As stocks are close to their full-value, it is getting harder to find good stock ideas.
I have sold some stocks recently i.e. FCL, Lian Beng, as mentioned in earlier posts, and thus have some capital to deploy.
The capital are used to buy two reits: SoilBuid Reit (SBR) and Far East Hospitalality Trust (FEHT). Personally, I don't like to own reits, as reits generally have high price-earnings ratio and we are in rising interest rate environment. However, due to the lack of ideas, I have to settle on reits.
SBR and FEHT are bought with the possibilty of 'turnaround' in dividends.
For SBR, its Loyang Way premise is 90% empty now, as it was vacated by an O&G company last year. If it manages to lease out the Loyang Way premise…