The recent correction in Singapore stocks is a sign of fund moving out of the local market. STI has a relatively small market capital so it is very susceptible to external fund flows and market manipulation.
Over the past 52 weeks, you can see insituation investors had sold more than twice the amount stocks than retail investors.
This is more apparent in REITs with the rising interest environment. Tbills and bonds offer relatively decent yield (3-4%) with relatively low risk. In the likes of Tbills and SSBs, many Singaporeans would reckon that its zero risk. On that note, why would one enter into REITs for 5% yield with exposure to market volatility and potential recession risk.
Another point to note is that the drawdown is across the board and not just concentrated yo a particular reit, this means that it may take time for the prices to recover. The prices must continue to fall to an attractive level for inisttution to start accumulating again.
My approach now is to wait for the market to reach that accumulation zone to build up position. There is no need to rush to buy the dip. One should always be mindful of the downside risk unless you have unlimited capital.
@TigerEvents @MillionaireTiger @TigerSG @Daily_Discussion @TigerStars
Modify on 2023-10-28 20:36
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