With the US signalling optimism in stocks by cutting back on bond buying, we notice that many Singapore stocks are following suit.
But is now really the best time to be aggressively accumulating stocks?
I think that for one to accumulate stocks/REITs at this time, one must be pretty cautious, and take note of 3 things:
- Be prepared to average down. Essentially, this means breaking up your purchases into multiple entries
- Be prepared to hedge your positions (using CFDs) should the market go against you
- The hunt for high yield
As most counters will seem expensive now, once benchmark you can use is to look for those who a decent yield, for example I use 7% as my personal minimum target yield.
For October, I have scaled down on equities and added some REITs, liquidating some of ARA Asset Management, and adding some positions to AIMS AIMP (7.5% yield).
I have also allocated more funds to trading, as well as private funds, both of which will be able to generate consistent returns in bull or bear markets. This will allow me to continually grow my stocks/REITs portfolio regardless of market direction.
Next week, I will be giving a workshop to share more on portfolio building and rapid capital accumulation, using my own portfolio as an example, and how I started from scratch to build a portfolio that has enabled me to live off the passive income.
This workshop is suitable for both new and experienced traders and investors.
Revealed: Portfolio Current Holdings!
Here are my current holdings as at the end of October 2014:
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