Finally found some quiet moments to reflect on what happened in the market last week and sketch some plans for this week.
Confidence was shaken last Thursday when US market tumbled.
The seemingly unstoppable rally that started in late March has started to reveal a chink in the amour.
Will it crack further or heal by itself? It remains to be seen.
On Friday, STI first dropped 80 points before recovering to end about 20 points off. The support in the afternoon came on the back of strong positive S&P 500 futures for Friday session. S&P 500 eventually ended Friday, 40 points above Thursday close but still 160 points down from Wednesday close.
I feel that there is a chance that STI may weaken further as the first sign of cracks appeared.
I am sure many investors still have the horror memory of what happened in Feb/March. No one would want to be caught again and everyone knows that the current market still has a lot of uncertainties and the COVID-19 issue remains largely unresolved. I suspect the overall risk appetite is not high.
Furthermore, many investors could have made some money in the rally over the last 2 months and they may want to take profit first in case it vapourises if STI drops drastically.
On the back of that, I reviewed my watchlist and came up with a few companies that I put on top to watch more closely …
To BUY :-), they are:
(a) Hong Kong Land
(b) Ireit Trust
(c) Manulife Reit
(h) Lion-Phillip S-REIT ETF
Anyway, these are companies that I intend to invest for the long term.
Hence, if their share prices experience an exceptional weakness, it will be a good opportunity for me to accumulate them to lower my cost price and increase my dividend yield further.
Thought of sharing this with you in case you are interested.
Have a great investment week ahead