Once again, another bloodbath washed the stock market. My 2 counters are directly hit as expected. AIMSAMPI remains relatively stable while Starhill Global hits another new resistance of $0.59. I never expect this retail REIT stock to fall so much in a single-day trade, considering some positive news emerged from its plans to acquire more assets in downtown Singapore. But would I get into the market and buy the REIT stock at another new low? No.
As mentioned recently in one of my blog posts, "Next Move- Investable Cash", I am focusing my priority now on cash that will be used to invest on shares during major economic shocks. The latest bloodbath is not a major one since so many similar shocks have rattled the stock market recently. I am referring to the one similar to the 2008 economic recession where stocks above $1 now were traded as low as $0.10. Furthermore, I have abandoned the strategy to average down my dollar cost purchases. I don't have that sheer size of funds to carry out multiple purchases at each new low. Even when it reaches a strong resistance, I still need to employ technical analysis indicators and compare the trend to latest financial headlines to see if there are more rooms for further dips. The market is very volatile now and I am being extra vigilant to stay put on my plan for the time being.
With my investable cash increases over the next few months, I am looking to buy another counter, preferably First REIT, a defensive healthcare stock that adds a good dividend of 8%. Another healthcare stock, PLife REIT, is actually more defensive than First but looking at the updated 5.7% inflation rate, PLife's conservative dividend rate of 5% could not surpass it. Furthermore, it is very overvalued (NAV is only $1.39 but market price is $1.84). At such a volatile period, I am looking for dividend income instead of growth.
In the meantime, I will continue to read blog entries written by expert investors and study their ways of investment.
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