|UOB||23.10||3.2%||11.7||Banking and Finance|
|OCBC||10.59||3.4%||11.5||Banking and Finance|
|Semb Corp Industries||4.34||3.7%||9.8||Marine/Utilities|
|Portfolio Yield||Portfolio PE|
I spoke about keppel corp in january, after they announced a great set of full year results. The stock price was really depressed due to all the worries of the oil bear. Valuations were really cheap and I couldn't resist making a bet. KC has since had a good ride up and I took this opportunity to lock in a 10% profit for half my position.
Oil has been bouncing around the $50 (WTI) level, and has shown no signs of a fast recovery. As unprofitable oil rigs slowly shut down, this should eventually bring back balance to supply/demand, however it could be a slow process and may take like a year or so.
With the recent rally in the local market, my portfolio has gained quite a bit. This results in a higher PE ratio, from 12~ish level to the current 13 times and a drop of yield from 4% to 3.8%. However I do not think that valuations are expensive .... its still somewhere comfortable.
THE government will introduce the new Singapore Savings Bonds (SSB), a type of Singapore Government Securities (SGS) for local individual investors.
Like SGS, the Singapore Savings Bonds are safe investments, principal-guaranteed by the government. Holders of the SSB can also get their money back in any given month, with no penalty, and can earn interest that is linked to long-term SGS rates. Also, unlike bonds that pay the same coupons each year, the SSB pays coupons that increase over time.
In theory the bonds seems pretty interesting and attractive, but I will have to wait for more details... I'm wishing for yields of 2-3% or higher, given that sibor already crossed 1%... we may see rates going higher and thus making bonds an decent investment again.
While many are worried of a market crash or waiting for a fire sale, I do believe that I have no talent in timing the market, as such I would continue to stay vested and keeping a good balance in my portfolio.
I'm currently at 85% Equities and 15% in Cash. My equities are yielding only 3.8% while cash on fixed deposits are yielding 1%+, so overall I'm getting like 3%+ which is nothing impressive.
As the market goes higher, I do hope to gradually take some profits and reduce my equities positions. Once interest rates have improved, I would really like to pick up some bonds. Ideally I wanna go move to an allocation of something like 75% Equities 25% Bonds.
"Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves." - Peter Lynch