The downtrend continues this month after the brief relief last month, with more issues in the Eurozone brewing. While many members of the Eurozone had their sovereign credit downgrades this month, what worries investors most is that the powerhouses of Eurozone have become the ones facing difficulties now. France is having a pending downgrade in the outlook of its sovereign debt by Standard and Poor's rating agency, while Germany's sale of its sovereign bond is facing lacklustre results.
All these events caused the STI to sink back to levels below 2700 before hovering around the range. The jitters in the market caused many investors to remain at the sidelines, and it also caused my portfolio's unrealised profits to slide back into the red. However, I decided to take the contrarian view to try to average down my holdings. From a technical perspective, both ST Engineering and FJ Benjamin seems to be ready for a technical rebound as the RSI and MACD are in the oversold region. I placed a buy bid for both, and in the end I got ST Engineering but not FJ Benjamin. I did not increase my bid price for FJ Benjamin in order to get my lots successfully, because I have learnt not to chase after the share price and I need to be discipline in investment.
The purchase of ST Engineering is the only change I made for my portfolio this month. As the end of the year approaches, it can almost be certain that this year has been a bad year for my portfolio. Due to the many 'wait and see' approaches and 'not willing to sell at a small loss' attitudes, it caused me to accumulate a rather massive loss for my portfolio for the year. However, as I am not in need of the cash, I can hold on to my investments till the tide turn. It may take a couple of years, but I believe what goes down will eventually come up some day, as long as the fundamentals remain intact. The bright spot for me, I believe, is that the bulk of my portfolio generates a good and consistent dividend yield of approximately 6% for the year, which helped me counter inflation reasonably well.
As the year draws to a close, I can only hope that the final month of the year will have some pleasing news that can ease the tension in the markets to minimize my losses in my portfolio.
All these events caused the STI to sink back to levels below 2700 before hovering around the range. The jitters in the market caused many investors to remain at the sidelines, and it also caused my portfolio's unrealised profits to slide back into the red. However, I decided to take the contrarian view to try to average down my holdings. From a technical perspective, both ST Engineering and FJ Benjamin seems to be ready for a technical rebound as the RSI and MACD are in the oversold region. I placed a buy bid for both, and in the end I got ST Engineering but not FJ Benjamin. I did not increase my bid price for FJ Benjamin in order to get my lots successfully, because I have learnt not to chase after the share price and I need to be discipline in investment.
The purchase of ST Engineering is the only change I made for my portfolio this month. As the end of the year approaches, it can almost be certain that this year has been a bad year for my portfolio. Due to the many 'wait and see' approaches and 'not willing to sell at a small loss' attitudes, it caused me to accumulate a rather massive loss for my portfolio for the year. However, as I am not in need of the cash, I can hold on to my investments till the tide turn. It may take a couple of years, but I believe what goes down will eventually come up some day, as long as the fundamentals remain intact. The bright spot for me, I believe, is that the bulk of my portfolio generates a good and consistent dividend yield of approximately 6% for the year, which helped me counter inflation reasonably well.
As the year draws to a close, I can only hope that the final month of the year will have some pleasing news that can ease the tension in the markets to minimize my losses in my portfolio.
My Current Portfolio:
Lessons learnt: The "buy-and-hold" strategy seems less effective nowadays compared to before, as markets become very volatile. Investors and traders are more aggressive and nimble with their trades now to ensure profitability or keeping losses in check. Seems like I need to learn both techniques to improve myself in such volatile conditions.
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