As bees are attracted to flower, investors are attracted to good business priced at a discount. The market continues to slide and it’s really hard to resist the buying temptation. With my portfolio going 25% down year-to-date, I decided to dip into my fund again to add more DBS at $17.59 (avg. $21.4), Ascendas REIT at $2.55 (avg. $2.99) and Parkwaylife REIT at $2.60 (avg. $3.20) yesterday.
I have wanted to buy a bit more Intuitive Surgical, Ulta Beauty, Starbucks and VISA last night but the price rebounded quite a bit before I went to sleep, so I decided to wait for a while. There will be probably opportunities to buy them cheaper within the next two weeks.
With the above deployment, I am almost done with my buying for this market. The final dip in my fund will come if my portfolio continues to drop to -35% to -40%. In the mean time, I will just continue to use my CPF-OA to average down on STI ETF.
As mentioned in an earlier post, I have decided to double my holdings in four rounds as the market drops. Lo and behold, this was done within just 10 days.
So what’s next? Looking at the amount available in my CPF-OA, I decided to continue to do another 4 rounds of averaging down. However, I will increase the interval in which the price drops before adding. Instead of adding at every $0.15 drop, I will add for every $0.20 drop for the next two rounds and $0.25 drop for the final two rounds. In another word, I will attempt to buy at $2.20, $2.00, $1.75 and $1.50.
I am also going to explore buying some unit trusts with CPF-OA. While I would have preferred to simply buy ETFs, overseas ETFs are not available for CPF-OA.
Finally, I would like to reiterate that my investment timeframe is 3 to 5 years. And if necessary, I probably can hold these investments for a decade. So I reckon that the odd of making a good positive is with me.
Towards Financial Independence 