Beating the benchmark

Between 11 May and 25 May, the Straits Times Index (STI) dropped 4% (from 2,887 to 2,772). My Singapore equity portfolio declined 3.1%, better showing than the STI’s. For one who has invested in Singapore equity, one cannot escape the fall in equity value during this period.

My Singapore equity portfolio extended its paper loss in value from 9.47% to 12.29% on costs. I am still holding on this portfolio for reason that these stocks offer dividends. I have no intention of off-loading any of these stocks. In fact, I was on the look-out for some more selective additions to the portfolio because the STI had gone below 2,800 points level.

The key question is what stock to acquire and at what price to buy. One has to make up his mind as to how much more one can invest in equity so as not to over-invest in this class of asset. The share price volatility is here for a while until at least after June when Greece has a new government and the decision to stay in Euro has been made.

Copyright © 2012, 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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1 Response to Beating the benchmark

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