Inclusive of dividends, my portfolio of local stocks remained unchanged whilst STI was down by 1.4% at the end of August 2014. Overall, my holding period returns had translated to 10.13% in annualised return since start of 2010.
I continue to liquidate some of my local stocks and especially the bigger capitalization stocks to boost my cash level further. After a round up of 2nd quarter earnings announcements, most of our local blue chip stocks had reported lower or flattish earnings. I found that the earnings outlook from the ST index stocks doesn’t look favorable in the mid-term and couple with the overdue Bull Run in the US market; I expect another financial crisis to come soon.
In the meantime, I am gradually increasing my exposure into the US market. I am targeting US stocks that have strong earnings momentum but of course they must be trading at cheaper valuations than the overall market. Currently, I am holding shares of Apple and Gilead Sciences. After experimenting myself with a couple of short term trades, I found that I am more comfortable with just buying the stocks and holding them for longer periods. I can spend less time monitoring the US market and the returns can be more rewarding in the longer term.
Here is a summary of the transactions that I made in the month of August 2014.
Sold Teckwah, at 58.96% gain (including dividends)
Sold SIA Engineering (Cash), at 44.82% gain (including dividends)
Sold partial SATS, at 0.84% gain (excluding dividends)
Sold partial STE, at 0.68% loss (excluding dividends)
|Annualised Return = 10.13%|
|Stock||Mode||Unrealised P/L (SGD)||Stock||Mode||Unrealised P/L (SGD)|
|CAPITAMALL TRUST||CASH||10.42%||RAFFLES MEDICAL||CASH||54.27%|
|CHINA MILK *||CASH||-100.00%||ROXY PACIFIC||CASH||73.34%|
|FAR EAST HOSPITALITY||CASH||-13.85%||SILVERLAKE AXIS||CASH||126.67%|
|FIRST REIT||CASH||44.00%||STARHILL GLOBAL||CASH||-2.45%|
|FRASERS COMMERCIAL||CASH||5.39%||ST ENGINEERING||CASH||-3.85%|
|KINGSMEN CREATIVES||CASH||17.34%||SIA ENGG||CPF||-3.54%|
|MAPPLETREE GCC||CASH||1.39%||CAPITAMALL TRUST||CPF||3.90%|