How do you all deal with stocks price crashing


#22

Will U sell CMT? I think below 5% yield can consider to sell.


#23

It depends on what you want to achieve. My current actual avg cost is abt 2.12. If I sell CMT now, I will reap some capital gains of around 1+k.

Qn 1) But where else do I park this $$? Running out of options in sgx.
Qn 2) Do I foresee being able to secure CMT again in near future at a price below my current avg cost (I think likely not within the next 9 mths.)

My personal objective is to secure life long dividend income so I will need a replacement.
If you flip your perspective a bit, to see my current cost as an actual yield of 5+% versus current projected yield of 4.7%, it would seem like I bought my future dividend stream at a lower cost.

Lets switch the analogy, hopefully it strikes a chord somewhere. You bought your 700sq ft HDB at 100k. Now the estimated selling price is 250k!! The nearest alternative is a 600 sq ft very new bto one for 250k and a 650sq ft one for 225k. Do you still want to sell?

For 2019 / 2020, I want to play test a style - the % allocation in my portfolio to correspond to the investment’s current yield and rebalance the position to +/- 1% of current yield. My greatest concern now is to bring down the % holdings in AA reit and OCBC as I am overweight there and underweight in a few others, eg Keppel DC


#24

Lolz CMT started coming down. I seriously hope its not my comments that did it in.

Singtel is the other with the news report on Moody slashing the credit rating. Did some googling and then I laughed.

… Vodafone Idea’s net debt is over 25 times its earnings before interest, tax, depreciation & amortisation, while for Jio it is 6.9x and for Airtel consolidated it is 4.2x, forcing all three to look at ways to raise funds through asset sales or rights issues…

More homework to do for a fair and objective evaluation before concluding who the real winners are in this bloodbath


#25

IMHO, you sell only if the fundamentals are deteriorating or there is increased risk of default.

If u value or long investor, once u sell (e.g a reit at a high price), you are forgoing ALL future streams of dividends. Have to think carefully.

E.g I sold out First Reit although I held for more than 10 years. The Lippo liquidity issues just too much risk for me to absorb because it can really crash to zero. I decided to cash out to protect my gains. If drop low, maybe can tikam 10K again otherwise will not enter again.


#26

Just buy back after selling, 2015 to 2018 already 2x sell down and now up cycle


#27

Hmmm, my plan is to save the monies not deployed into SSBs then when I see an attractive price again, I can deploy from there. I did sell some CMT when it hit 2.25 then it just continue up. Have some worry I wont be able to buyback at less than current cost. I rather hold now and slowly average it out