Monday, January 18, 2010

Easy Money Already Been Made for 2009

Since we all are aware that the easy money has already been made in the stock market, perhaps it is time to think of divesting whatever gains we have.

Yes, the stock market looks poised to soar even further but one question still remains in my mind: "How much higher can the stocks that I am holding go?"

Coming into the new year, I have already divested my First REIT and a portion of Neptune Orient Lines. I will sure invest in them if the price comes down a bit more. In the mean time, I am just content to sit on all my cash.

Another stock that I have been thinking of liquidating is Ascott Residence Trust. DBS afterall had a price target of $1.32 and since it is currently trading at $1.34, I am thinking that it might make a good sell price. The only thing I fear is that the stock will rise further after I have sold it.

Ascott REIT afterall is trading at 5.6% yield, has a NAV of $1.32 and has a gearing of 40++%

Good time to sell out now and collect back later?

2010 will be a difficult year to make money in my opinion. I would like to think that the small caps will be playing catch up and this will likely include some S-shares. However, as we all know, small caps tend to be very volatile and you might end up stuck with some lousy shares if you liquidate your more stable blue chips & should any crisis hit us again.

5 comments:

  1. After so many years in the market, I have yet to know when is a good year to make money?

    ReplyDelete
  2. Hi FF,

    Please do consider "dividends" as a method for making money. If you sell out now, aren't you worried you may have to buy back higher at a later stage? Since bear markets come less frequently than bull markets, you may have to stay in cash for quite some time before a good opportunity with margin of safety presents itself once again.

    Cheers.

    ReplyDelete
  3. Hi FF,

    it seems that you don't have a strategy at hand. You sound confused and obviously you are timing the market.

    I have a solution for you.

    Put all your Money into CPF-SA
    Like you said, 4% guranteed.

    Cheers

    ReplyDelete
  4. Averaging might be a good strategy since it is hard to time the market.

    ReplyDelete
  5. I am not a good timer of the market. However, I feel that there are times we can tell that the easy money has already been made and it is perhaps time to slowly hold a bit more cash so as to be able to consolidate our gains and buy more stocks when the opportunity presents itself.

    Look at DBS now. How much higher can it get as compared to when it was $6 last time. Yes it can go up further but IMO, the easy money has already been made.

    Put in CPF-SA then the money will be locked in.

    I really like the idea of dividend stocks. Dividend stocks really tided me through the financial crisis.

    ReplyDelete

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