Friday, 28 February 2020

Covid19 Crash

In my last post I thought I was done buying for the month, but the market has gone into correction mode. STI is still above 3,000 at end February, but I am preparing for it to go this level next week.

I have been buying a little bit of various counters this week, but at the same time sticking on my resolution to focus on ETFs, so more or less from Tue to Friday I have been adding small amounts of WQDV & VHYD via Stanchart.

I have added Sembcorp and Comfort Delgro as they both went under $2. While Sembcorp continues to freefall, Comfort Delgro's price is more resilient, underscoring its defensive qualities. European banks/financials also look attractive and I picked up more LLOY, Aviva, ING, and SAN. As the FTSE100 itself looks attractive, I added VUKE. Going forward, I think I should focus on VUKE instead of individual UK stocks.

If markets continue to fall next week and STI goes below 3,000, it would be fair to say that this is the sale that I have been waiting for. I will draw up a plan to buy at STI ETF at $2.99, $2.89, $2.79 and so on, probably exhausting funds at $2.00.

I'm using the same spreadsheet on google docs that I used in 2008-2009, so I can see my earlier workbooks recording my buying decisions then. Of course a few things have changed since 2008-2009:

  • I have cheap access to foreign stocks via IBKR, SCB, FSMOne
  • I have built up my passive income and paid off my housing loan, giving me a measure of financial security.
  • My CPF funds have grown since then, providing an emergency warchest.

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