For the later half of March, I was down with the flu, so I did not have much time or energy to update my blog, but I did have a lot of time to revamp my investment portfolio.
After much consideration, I have decided to gear my portfolio towards more yield-based passive income, so as to better complement my monthly income from trading. And should I choose to retire from trading (perhaps a mid-life crisis upon turning 30 😀 ), I will have the option to live off the passive income from my portfolio, and pursue other endeavours.
One of the major changes was to remove all assets that do not give yield, such as Gold, Commodities, Oil, as well as bonds that offer too little yield. I figured that these assets derive their gains purely from capital gains, so I will continue to profit from their price movements, but via CFDs instead. This will better segregate my short-term and long-term gains, which will allow me to focus on trading and generating maximum monthly income to grow my passive income portfolio much faster.
In light of attractive yields ranging from 7 to 10% (which may or may not be sustainable), I have decided to nibble at some REITs. These are relatively defensive since they have long-term contracts, and the FED has decided to take it slow in raising interest rates. Here are some of the REITs:
- Croesus REIT
- Soilbuild REIT
- AIMS AMP REIT
- Cache Logistics
- Sabana REIT
I have also decided to pick up a bit more of Keppel, increasing my stake from 3% to 4%, and in light of the recent news of Keppel winning a big contract in Brazil, as well as the upside for oil prices, I am confident in the fundamentals and prepared to hold this for the long-term.
There have been mixed views of a possible recession (and a crash in the stock/property market) by the end of this year or early next year, hence I have decided to play it safe and hold a large percentage in cash (about 35%) in preparation for a possible large crash. In the meantime, I am seeking defensive investments, as well as fixed income investments that have relatively short maturities.
Recently the STI and the US stock indices have started to look toppish, and we have yet to see any breakthroughs. I will continue to monitor the situation, and slowly nibble at new opportunities while awaiting the “Big Crash”. The key at this point of time is to take advantage of market fluctuations to amass more capital by trading mid-term swings and smaller intraday movements.
Good luck! 😀