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If we have been investing in Singapore equities long enough, we would be familiar with the talk that August is a seasonally weak month.
Of course, there is always some hope for a National Day Rally.
What about AK?
If there is a correction, and if prices hit my target buy prices, I might buy some.
Usually, Q3 is pretty good in terms of passive income received from my investment portfolio.
So, I should be able to take advantage of any market weakness in August.
My plan is still to add to my investments in DBS, OCBC and UOB so that, together, they form 40% of my portfolio.
Looking at the charts, I see the following supports which could be tested in case of a correction.
DBS.
At what seems to be a neckline at $31.87 per share and if that were to break, we could see $30.00 per share again.
With DBS common stock's rich premium to valuation, I am not in a hurry to increase my investment in DBS.
OCBC.
We could see a gap covering at $12.45 a share and this is also where many moving averages are bunching up which should provide a strong support.
If this were to break, we could see a pessimistic Mr. Market selling down to the next gap at $12.20 per share.
I would probably buy some if that should happen.
UOB.
We could see $28.00 per share again, give or take few cents.
If that were to break, we could see the share price going a lot closer to $27.00 a share.
That is where I might buy some if it should happen.
I would not go in with all guns blazing in case there should be extreme pessimism in the market for some reason.
With limited resources and with Q4 being usually a weak month for me in terms of dividends, it is better for me to err on the side of caution.
Before I sign off, if you do not follow my YouTube channel, I produced a new video today and you might be interested in watching or listening to it.
If AK can do it, so can you!
Bloggy Award
20 comments:
Memorised the numbers by heart
Hi SgFire,
I so stunned like vegetable! (*O*)
Dear AK
Nice piece
However, I feel that once DBS and OCBC go ex-dividend, I will start watching
In fact, I sold a very small part of my DBS holdings and will be doing with OCBC as well
Will add them ex dividend and add more if they trend lower
Although I agree on technicals, your base case of 12.20 and 27, for OCBC and UOB respectively, might happen only with a wider market correction
Of course, I will add more then
Regards
Garudadri
Hi Garudadri,
You are in good company with Piyush Gupta selling 100,000 shares at $34 a share! :D
I am quite OK with simply holding my positions if a deeper correction does not happen.
War chest would be quite happy to be fed. ;p
Hi Ak
Hppy national day. Did you voted for sabana egm? Can you talk to yourself on the recent egm?
Hi SgFire,
I usually don't go for AGMs and EGMs.
Too lazy. ;p
The only one I went for was Saizen REIT's AGM donkey years ago.
There really isn't anything for me to say about the recent Sabana REIT's EGM.
Internalizing the manager is not a bad idea but it just depends on how well it is going to be executed now.
your voice is ok. As for the fiftperson video controversy, forget it. No need to think too much over it.
Hi isabel,
Thanks for the vote of confidence. :D
Yes, I will try not to think about it.
I suppose if people cannot understand that a good lesson should not go to waste, then, it cannot be helped. :)
Hi AK,
Your voice is definitely okay, no worries. It feels more connected to your followers & listeners too.
Somehow this article reminds me of your quote… “We work because we want to, not because we have to” 😊
Hi Eddy,
Thank you for your feedback.
Gives me more confidence! :D
Wah! Long time since I said that.
Next level is: "We don't want to work."
I go hide now. Later kena POFMA. (TmT)
Hi AK
On the topic of Sabana, given the NAV of the reit is >50cents, is the current price considered good value now. Am thinking worse case scenario the internalization of the reit manager does not work out and Sabana struggles, there will be an offer made to buy it out at near the NAV price or a slight discount?
Trying to talk to myself (like you always advise us to do), but I’m worried if I’m talking nonsense haha 🤣
Hi Winnie,
It is all sentiment driven.
Sabana REIT is retesting the low formed in October last year.
From a valuation perspective, it is very good value now.
However, there is no telling what Mr. Market might do if the pessimism persists.
I could buy more if the unit price sinks to retest 35c a unit which was when I increased my investment in Sabana REIT again a few years ago.
Thanks AK. Good to know that I’m still sane as my thought process is not too far from yours hehe
Hi Winnie,
When you think like AK who is mental, you are right to worry. ;p
Hi AK,
What is your views of buying any of the 3 banks using CPF OA
instead of doing SA shielding to get higher interest? Tks
Hi ms,
I treat CPF as an investment grade bond and it is the largest bond component in my investment portfolio.
I feel that it is important to have this component in a portfolio because it smooths out volatility over time.
The reason why I used my CPF OA money to buy some T-bills is not only because T-bills offer a higher yield but because they have the same risk free, volatility free characteristics.
Of course, if we feel that we have sufficient exposure to investment grade bonds, we can use some of our CPF OA money to buy stocks, if we like.
We can only use a small portion of the money anyway. :)
Thanks AK, how would we know how much is sufficient exposure to investment grade bonds like CPF, then can use the rest to buy stocks?
And how do you plan to earn higher CPF OA upon age 55 without SA shielding ?
Hi ms,
I am not a financial advisor and I am not allowed to give advice to individuals.
You would have to talk to a certified financial advisor and find out how much exposure to risk free and volatility free investment grade bonds you should have for your situation.
In my case, I decided that since I have a relatively large investment portfolio in equities, I would simply treat all my CPF savings as that bond component. :)
As for turning 55, I still have 3 years to go.
I will cross the bridge when I come to it. LOL. ;p
Hello AK
I currently do not hold any positions in the 3 local banks and am looking to add my first batch once the entry price looks good - do you recommend just choosing one security eg. OCBC to invest in or to split my investments across the 3; assuming my deployable capital is about $10,000?
Thanks!
Ivan
Hi Ivan,
I am not allowed to give financial or investment advice to individuals, and I don't want to either. ;p
I so scared later the authorities invite me to lim kopi. -.-"
All I can say is that from a valuation perspective, OCBC looks to be the cheapest.
When we look at near term growth, UOB looks like it is set to lead.
When we look at performance in recent years, DBS has consistently reported a higher ROE than its smaller peers.
I will end by saying if I only have one egg, then, only that one egg will go into the basket.
If I have more than one egg, I might not put all of them in the same basket. ;p
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