Portfolio Updates : May 2020
Time really fly past very quickly during the circuit breaker period as it has been almost a month since I’ve started this blog. As usual, I’ll be doing a portfolio update at the end of every month.
Previous update: April 2020
|Ticker||Transaction Type||Entry Price|
|U11 (UOB Group)||Buy||19.73|
Similar to April, I’ve only made a single transaction throughout the entire month and that’s for UOB group. During this dip, I’ve been especially looking into the Singapore banks as I felt that their valuations are considered low now.
As compared to REITS, I feel that the bank’s risk to reward ratio is much better. The main risks related to these banks during this period of time would be the loan defaults from businesses which I don’t think will make a huge impact on the company’s balance sheet in the long term.
REITs have huge challenges ahead of them in almost every sector other than industrial. Those risks and challenges sadly have also been priced in by investors as we can see industrial REITs are almost back to their all time highs.
I’ve also picked UOB instead of DBS because of the current situation in Hong Kong. DBS & OCBC has a much larger footprint in Hong Kong as compared to UOB. It’s only a small purchase as I just want to diversify my bank holdings and reduce the risk.
What I’m doing next
If you’ve been keeping track of my portfolio growth, you can see that in recent days my losses has significantly been reduced. This is due to the sudden sharp increase in REITs prices recently.
As mentioned in my previous portfolio update, I wanted to pick up some REITs especially in the logistics and industrial sector. However, given the increase in their prices, it seems even riskier to pick them up as compared to before. Their prices simply did not reach a point where it’s comfortable for me to pick them up.
I’ll continue to monitor their prices and make an action should their risk to reward ratio reach a favourable point for me.
These few weeks, I’ve also been more interested in US stocks as compared to domestic Singapore ones. This is likely due to the increased news coverage for these stocks but I’ve also yet to make any actions on them.
This is a relatively mild and boring month for my investments as I did not make any large moves. The risk to reward ratio for many stocks simply are not comfortable for me to make any purchases.
There is certainly a lot more uncertainty happening around the world now, with the current pandemic, US-China trade tensions back at an all time high and the Hong Kong National Security Law bill being passed, I believe opportunities will come again and I have to be prepared for it. Stay safe!