STI has dropped 25% year-to-date.
Warchest Deployment
I have deployed around 30% of my warchest in Mar 2020 so far. The warchest includes my CPF-OA investable funds.
Some of the warchest funds are in SSB and will need some time to redeem.
For the rest of my warchest, a possible action plan going forward:
STI 2,150 - 2,300: Deploy 1/3 of remaining warchest
STI 2,000 - 2,150: Deploy 1/3 of remaining warchest
STI below 2,000 : Deploy 1/3 of remaining warchest (CPF-OA investable funds)
STI below 1,800 and no more funds: Deploy rest of CPF-OA into unit trust or STI ETF
An alternative Plan B will be:
1) Wait for market to stabilise with price breaking 20-day moving average before deploying rest of warchest
Hmm, not sure which plan is better?
Anyway, I will not make any purchase for the next few days. This is to let my cash position stabilise, so that I have more accurate picture of my remaining funds.
S-Reits Thoughts
While the market have crashed, the reits below are not cheap at P/B basis
Ascendas Reit: 1.16 P/B
Mapletree Commercial Trust: 1.00 P/B
Mapletree Industrial Trust: 1.33 P/B
Mapletree Logistic Trust: 1.11 P/B
I am not sure why the 4 reits above is trading at book or above book value during market crash. I guess that the 4 reits above are a 'crowded' trade.
The Capita reits are cheaper at P/B basis.
CapitaComm Trust: 0.80 P/B
CapitalMall Trust: 0.85 P/B
Anyway, the above reits are not in my watchlist currently. I am just expressing my surpise at seeing reits trading above NAV at the current moment.
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