Monday, 10 February 2020

Strategy: Feb 2020

It isn't mid-February yet but I have continued my buying. In particular, I am looking at ramping up my position in Shell (B Shares). Shell price went down because of poor results but the investment thesis seems intact. The oil and gas sector is likely to be disrupted but I believe that Shell is in a good position to transition into an energy company (we'll always need energy even if we might not always need oil) rather than an oil company that dabbles in other types of energy.

I bought WQDV at the start of the month and just bought VHYD. So I'm glad I manage to stick to my plan to regularly DCA these 2 ETFs monthly. My 2800.HK RSP with FSMOne seems to be working. The account indicates that the RSP money has been put on hold but the units have not been delivered to the account yet, I guess that occurs after T+3.

Apart from this, I added a little bit of Sembcorp, Frasers HT, Comfort Delgro, and HSBC.

While N-Cov will certainly have an impact on earnings on companies in affected countries, the market is not crashing, perhaps buoyed by the US market which seems to keep on going up. While there is no sudden crash, a stock market adjustment to lower earnings (and likely lower dividends) should logically be inevitable, once there is a clearer idea of how badly earnings are affected.

So while I will occasionally top up small amounts of SG shares, my focus will be international shares and ETFs. I'll still buy STI ETF if it drops below $3, but I'm not counting on it. 

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