Tuesday, 26 July 2016

July Strategy: Holding Pattern till August

A couple of days more till the end of no minimum Commission and the start of $10 minimum for SCB. I still have not sold my tiny 2,000 soilbuild REIT shares. Probably someday after the lawsuits are settles, I will buy $5k to top-up the existing holdings. Still cheaper than regular brokers.

At the moment, I am not buying anything. Actually I wanted to pick up some Fraser's Retail bonds which I had added at $0.99 but even retail bonds have increased in price along with share prices.

Part of learning to be a good investor is to know when to pause all stock trading activity. I worry about all those investors who are boarding the "GLP boat" when it is almost touching $2.00. People already said this is a "FIFO stock", have to be very careful, but people seem to be happily loading up at $1.9x. In the long-run, they will probably be ok (but if they are only interested in long-run then STI ETF is even more ok).

After a rally, I would rather buy safe defensive stocks rather than "FIFO stocks" because the defensives usually lag the rally. Hence my interest in BT and VOD. 

I also need time to rebuild the warchest that I used during BREXIT. So I am taking a break till August unless there is major crash. I should also be able to update the dividends collected in July once the month is over.

Market might be swinging too far in one direction and pricing a higher probability of  no rate hike than is warranted.

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