Monday, June 30, 2014

Pressing Pause - Resisting The Urge

Right here and right now, I will say it to have it on record.

I am going to stop being trigger happy and stop buying equities on the SGX.

I have been quite prudent so far, avoiding equities since late 2013 and resisting the urge to dance with the other bulls this first half of 2014.

I know that soon the party is going to be over, and the repercussions are going to be far and wide. Even though not over-valued, the Singapore stock market will feel the effects for sure.

Rather than paying for growth (I really don't believe in that) or current fair value, I hope to pick up some great finds of under-valued stocks in the near future .

So far, I have purchased almost all of my current stock holdings at discount prices, meaning for less than their Net Asset Value. Sure, their NAV might be inflated due to the inflation of asset prices in the recent times, but some margin of safety is definitely better than none. It is slim pickings out there, looking for companies selling at the discount without anything substantially wrong with their business.

As I look through my shortlisted stocks on ChartNexus, I see quite a few stocks that I am feeling very itchy to pick up. UOB Kay Hian, PEC, Kep Infrastructure Trust and just some of the few tickers that I am looking at today which I wouldn't mind to pull the trigger at these prices.

However, like I said, I do think and I do believe that we are going to be seeing weakness is equity prices in the near future. Whether be it later this year or early next year, a US market meltdown is going to affect everyone. That should then be a very opportune time to go very aggressive in those markets, as well as pick up some great quality names on the SGX priced at discounts.

While just waiting for markets to finally move, I will resign myself to thoroughly educating myself and creating a much much stronger and better framework for evaluating and picking SGX stocks. I think my current framework is a bit haphazard and narrow focused, though I feel quite comfortable with it. I guess I am just lazy to really dig through all the annual reports and extract out all the facts and figures. Once I have constructed a very nice and robust framework for selecting stocks, I will most likely purchase a ShareInvestor account to help myself find the financial information that I need.

So yes, in the meantime I will work on educating myself, stacking precious metals on dips (looking towards getting a physical coin in my safe at home instead of just in the vault to get a feel of it) and also sprucing up my blog and organizing it better, along with better scheduled updates (monthly STI updates and my sister's ETF portfolio). Oh, and yes, probably my own SGX portfolio, precious metals portfolio and maybe even networth as well!

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