Jan 2014 is pretty much an uneventful month. Unfortunately, being sloppy, I have only managed to come up with one investment thesis so far. Most of my resources are still sitting in cash in the deposit account.
Investment thesis:
Corporate bonds in US. US is gradually recovering from the Great Financial Recession. Earnings and balance sheet for the US companies are slowly improving. However, interest rates and treasure yields are still depress as the Feds are not looking to increase interest rate in the near future. With the earnings and balance sheet improving, the probability of a default is reduced. Corporate bonds from a risked adjusted returns basis seems attractive.
Asset Allocation:
1) Developed Markets. I will add unit trust with corporate bonds exposure (lower than investment grade).
2) Developed Markets. I will add US ETFs/Unit Trust when S&P has retreated to a more appropriate valuation. Focus will be on consumer discretionary, technology and energy sectors.
3) Singapore. STI took a beating these during end Jan 14 and have retreated to 3000 - 3100. I think there will be good opportunities for me to add some ETF positions.
4) Singapore. Focus on companies with quality growth (RMG) and/or high dividends (SGX and SATS)
I am still pondering if I should invest in high dividends stock. My money is definitely not working hard enough in the bank! But the risk of capital lost is something I need to consider seriously...
Regardless, Chinese New Year is just around the corner I wish all a prosperous and lucky year of the Horse !
No comments:
Post a Comment