Saturday, July 25, 2009

Update on STI performance

From my earlier posting here

STI is having the mother of bull runs. However, it certainly looks on track that STI is aiming to hit the triple resistance point at 2680.

In addition, I have loaded on Macquarie International Infrastructure Fund today, with 8 lots at 0.36 and 8 lots at 0.355. I made a mistake for not checking the TA earlier that there might be some downside potential in the short term. However, FA wise, it certainly seems a bargain price. Assuming a poor return of 5 cents per annum, it gives nearly 14% returns per annum! That means I will get back my capital fully in about 6 years. The business is mainly on acquiring infrastructure, and the fund is slowly shifting their focus towards the next economic growth region, Asia. This fits in line with my idea of defensive dividend investing.

I will accumulate more funds to average down if it goes to 0.30, which is about 15% below my average price. Why 15%? This is because I have set myself a rule not to average down long term holding stocks unless it is down at least 15%. I shall try to adhere to this rule as best as I could.

Moving forward, I will continue to channel most of my funds into defensive high dividend yield stocks, while allocating an increasing amount of funds to trading.

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