The financial markets were unstable after Donald Trump won the US Presidential election. More than US$1 trillion was wiped off the value of bonds around the world in the week ended 11 November. (Bloomberg 11 Nov 2016). Emerging Asian currencies had fallen against US dollars. Singapore dollar was down 1.8%. Malaysian ringgit was down 1.6%. (Source: DBS via The Business Times 12-13 November 2016)
Investors must be counting their losses. The market volatility is not going away. With less than 2 months left to the year, 2016 will turn out to be a nightmarish year with regard to investments. Singapore third quarter financial results for most big named companies were dismal.
I am already locking in losses on some of my investments to reduce some exposure to poor investments (realised loss of 0.68% on cost). The income on investments had been about 1.45% per year. This was lower than 2015.
My cash portion on investment is now 28%. The rest were still invested. If I do not stay invested, I would lose the portion of income arising from these investments. In the meantime, I am watching the markets to guard against degradation of my investments. It was a difficult year as 2016 turned out.
Copyright © 2016, limkimtong for Living Investment
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