Not confident with the global economy

The last time I wrote about equity investment was on 28 October 2011, when the Straits Times Index (STI) broke the 2,900 points level. The STI did not come close to the 2,900 level since. Today, it closed at 2,807 points.

News on the global economy was not getting any better than three weeks ago. It just confirms what had been suspected all along. Economic slowdown does not just reverse course on short notice! It will take a year or more for the current economic conditions to play out before we can see any changes for the better. From recent G20 summit meeting to APEC meeting, the world leaders were warning about economic slowdown.

Since 17 October, I had been finding opportunities to reduce my equity portfolio. It is currently reduced by 13.5 per cent. My equity portfolio now constitutes only 11 per cent of my overall investment amount, comprising thirteen stocks and one STI ETF. I am prepared to hold onto these equity investments for a longer period even as stock prices decline. These companies are still making year-to-date profits and some had been declaring interim and final dividends.

Copyright © 2011, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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