STI

Q&A › Category: Dividend Stocks › STI
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Alvin Teo asked 1 year ago
Hi, it seems that the STI is in an upward trend although i think it’s mostly pushed by the banks, what’s your thought on this? Will this sentiment be something to also push the REITS upward momentum? Beside REITS, also brought in some SingTel and YJZ shipbuilding, so far so gd. What’s your feel on these stocks? (I know you guys don’t recommend stocks, maybe just a few pointers?) So far my portfolio still in the red (although only a few hundreds) but that means through the years, I only earned dividends so hope to gain some guidance. Thank you. Pai sei, question abit long 
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Rusmin Ang Staff answered 1 year ago

Hi Alvin,

Due to interest rate fluctuation, Banks and REITs are usually inverse in term of performance. We are seeing weaker sentiment among REITs while bank's valuation is on the higher side. If we are investing for income, always good to have both of the asset classes together since they can hedge against each other. Right now, I think it is a good time to accumulate good quality REITs while slowly taking profit for the bank.

Ship building business is a cyclical business and we generally avoid investing in the sector. For telco, Singapore market is really tough to be in due to intense competition. For example, a lot of people I know is switching to operator '8' at a fraction of what the incumbents are charging. Thankfully, Singtel gets most of its revenue from outside of SG. So they should be fine. We did an interview with the CFO sometimes ago. You may want to watch the video here.

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Alvin Teo answered 1 year ago
Hi, do hold alittle bit of banks (very little) and yes, do plan to buy more REITS (averaging down some I am holding). Agree with your view on shipbuilding, will not be holding long. As for SingTel, actually I brought in after watching the interview (and did some research). Their “new direction” seems positive hence brought in some. 

As usual, appreciate for sharing your view. 
Rusmin Ang Staff replied 1 year ago

You’re most welcome. Feel free to dropby if you have other questions! Meanwhile, happy learning and investing…