Thoughts on 2017

2016 was a good year for investing; ditto for 2017 2017 is better

Yes, 2017 is a better year than 2016. STI is up by more than 20%, while my stock portfolio returns is around 30%. As the year is coming to an end, the returns should be more or less as it is now. At this point last year, I was expecting higher interest rate which will affect the stock market. Well, my prediction was off

Stock-to-Cash Proportion -- around 60% stock: 40% cash

I manage to roughly keep to 60% stock for most of the year, after using some cash to buy stocks at the start of year. Currently, my stock allocation is lower than 60%. I aim to pull it up to 60%, even though the market is not cheap. This could be tough, as I may have some stocks to sell.

Banks -- I like

10% of my stock portfolio is in DBS. At the middle of the year, I was aiming to sell DBS at $25. Now, DBS has reached around $25 and I have trimmed the position a little only

I feel that DBS (and other Singapore banks) may have some way to run, if interest rate rises. Higher interest rates, the lack of O&G negativity and improving economy should benefit banks. 

I also plan to add to my positions on China banks such as CCB, ABC if their stock prices fall further. 

Bye Cogent

I have accepted Cosco offer and await to collect $1.02 per share for my Cogent stocks. It is a pity that a growing company was purhcased by Cosco. 

Expectations for 2018

I expect muted returns for 2018 after a stellar 2016 and 2017. While the global economy is improving and sentiment is good, stock valuations are not terribly fanastic. Of course, I may be wrong. 

Either way, I will aim for 60% stock allocation despite my 2018 outlook. 

I also expect 2018 to be an interesting year for CDG. I am not vested in CDG but it is interesting to follow on CDG stock performance, especially since CDG's taxi business is in a fluid position where many things could happen. 

I am also of the view that offshore oil & gas may not see much recovery in 2018. Oil & gas cycles tend to have very long duration. 


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