Contemplating my Next Move

Instead of an opinion piece, I woke up this morning thinking about writing a survey piece. 

Have been putting some thoughts over the past week on where I should place some available funds next. Since Tiger does not have an option for polling, guess I should put this in an article and source for opinions through comments.

The base scenario is that there will be 2 pots of funds (Fund A and Fund B). 

Fund A

Fund A can undertake higher risks in expectation for higher returns. Investment timeline is about 2-3 years. I have always liked to place this pot into thematic investments. Results have been positive so far. 

(a) Given the risk profile and investment timeline, this pot definitely suits thematic investment. AI is the rage now. Went up too much too fast over the last couple of months. Is the recent pullback an opportunity to get in? With so many stocks being touted as benefitting from the AI developments, I thought about investing into an AI ETF - Roundhill Generative AI & Technology (CHAT). Only concern is whether this is the definitive moment for AI or just a mirage. 

(b) Have always loved riding the Semiconductor cycle profitably but the current down cycle seems to have been shortened by the AI boom (or is it?). The market was expecting a bottoming out in 2024 but we saw what happened in the past 2 months. Is this the turning point? Since the Semiconductor sector will also benefit from the AI boom (in addition to its own sector recovery), may not be a bad idea investing now. Looking at SMH or SOXX for this. 

(c) Outside of thematic investing, one much talked-about topic would be the undervaluation of Alibaba and how the plan to split its units would benefit its share price. The idea of buying BABA and receiving the shares of the split units is certainly very enticing. I benefitted extremely from the experience with Haidilao for SuperHi, although missed the one with Tencent for Meituan. 

So for Fund A, its whether funds should be invested into CHAT, SMH/SOXX or BABA. 

Fund B

Investment objective for Fund B is different. This is for the longer term, about 5-10 years. Risk appetite is lower, looking more at value investing. Decent dividends is a must, if not, at least some nice and steady capital appreciation would do too. 

(a) Personally like Sheng Siong alot. It went up recently to $1.80 and has pulled back to the $1.60s level. This is a classic stock with slow and steady capital appreciation and has a tradition of growing dividend payout. 

(b) With interest rates increase being at the tail end, this could be the time to start looking at Reits. Personal favourite is Mapletree Pan Asia Commercial Trust. It is actually back to the range during circuit breaker time, to about $1.60s. 

It gives a decent 5.5% (or 5.6%?) yield and may have capital appreciation potential should rates start its down cycle in a couple of years. Also, I like what I see at Vivo City. 

Hence, the 2 contestants for my money would be Sheng Siong or Mapletree Pan Asia Commercial Trust. 

Appreciate friends here to share your thoughts on what I have just written since there is no voting option here. Thanks.