I am back from the cold. I must say being away for almost six months has given me a sense of control over my activities including blogging. As the market environment deteriorated over those months so too my portfolio which I am managing myself.
The current market turmoil due to both external and internal factors has a great impact on wealth creation. Despite earlier knowledge that the oil and gas industry is cyclical, I fail to clear my position on a related stock on time and my loss on that is particularly staggering. I also have a plantation stock which is still giving a tiny dividend regularly but the share value has depreciated as well. And there is the stock that I bought based on its rapid rise in price only to be followed by its rapid decline. Well, these are my losing stocks which I will hold till better times come.
I am glad though I did not buy those stocks loved by foreigners like AirAsia which lost rather heavily when the capital flight out of the country started and remains so to date. I have so far, on paper, lost about 16% of my capital investment but it could have been higher if not for my two defensive stocks, MAXIS and TM. These two are quite resilient in times like this. It's so fortunate that I decided to participate in TM's dividend reinvestment scheme as I could acquire the shares at a discount and without extra charges. These two stocks have mitigated my severe paper loss on my three other stocks. TM's dividend is at 9.3 sen per unit and that of Maxis's at 5 sen per unit down by 3 sen and all due in two weeks' time. In the past the annual dividend rate for TM was 22 sen per unit and that of Maxis was 40 sen per unit.
My regret is for disposing my Axiata and IHH stocks so soon after making some capital gains. I would not have lost so muchon paper had I kept these two as they are in the defensive category in times of market depression. But as they say market will always rise after a decline and it's not a matter of if. All you need to do is to sit it out and monitor the economic and financial data of relevant countries such as the US and China, the oil and commodities' prices and of course the domestic factors which would have some impact on the Ringgit and our stock market due to bad investors' sentiment. In addition, I am hoping the Fed doesn't raise US interest rates too fast as our currency would further drop precipitously.
My unit trusts, the fixed price ones are fine albeit their dividends have lower purchasing power of imported items. The variably priced unit trusts are the ones suffering due to market's tumbling.
I am looking forward to receiving dividend for my AS1M on 01 October and thinking of investing it in AMB value trust whose price is currently low at 34 sen per unit. Life continues but investing strategies need to be changed to adjust to present market downfall.
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The current market turmoil due to both external and internal factors has a great impact on wealth creation. Despite earlier knowledge that the oil and gas industry is cyclical, I fail to clear my position on a related stock on time and my loss on that is particularly staggering. I also have a plantation stock which is still giving a tiny dividend regularly but the share value has depreciated as well. And there is the stock that I bought based on its rapid rise in price only to be followed by its rapid decline. Well, these are my losing stocks which I will hold till better times come.
I am glad though I did not buy those stocks loved by foreigners like AirAsia which lost rather heavily when the capital flight out of the country started and remains so to date. I have so far, on paper, lost about 16% of my capital investment but it could have been higher if not for my two defensive stocks, MAXIS and TM. These two are quite resilient in times like this. It's so fortunate that I decided to participate in TM's dividend reinvestment scheme as I could acquire the shares at a discount and without extra charges. These two stocks have mitigated my severe paper loss on my three other stocks. TM's dividend is at 9.3 sen per unit and that of Maxis's at 5 sen per unit down by 3 sen and all due in two weeks' time. In the past the annual dividend rate for TM was 22 sen per unit and that of Maxis was 40 sen per unit.
My regret is for disposing my Axiata and IHH stocks so soon after making some capital gains. I would not have lost so muchon paper had I kept these two as they are in the defensive category in times of market depression. But as they say market will always rise after a decline and it's not a matter of if. All you need to do is to sit it out and monitor the economic and financial data of relevant countries such as the US and China, the oil and commodities' prices and of course the domestic factors which would have some impact on the Ringgit and our stock market due to bad investors' sentiment. In addition, I am hoping the Fed doesn't raise US interest rates too fast as our currency would further drop precipitously.
My unit trusts, the fixed price ones are fine albeit their dividends have lower purchasing power of imported items. The variably priced unit trusts are the ones suffering due to market's tumbling.
I am looking forward to receiving dividend for my AS1M on 01 October and thinking of investing it in AMB value trust whose price is currently low at 34 sen per unit. Life continues but investing strategies need to be changed to adjust to present market downfall.
.
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