I have owned the STI ETF at the high point of 3.46 and watch it get all the way down to 3.09. Those that are dollar cost averaging should be happy about this.
However, I can’t help to notice that there really isn’t much difference in the value of the holdings in the portfolio.
Six months in and prices are still almost at the same place. You don’t really see any of your Kingsmen Creatives, Boustead or ARA that corrected more that you can opportunistically grab.
I wrote a post some time ago comparing the 3 banks and STI ETF returns.STI ETF does better.
Since the 3 banks ends up making up a large part of the STI index together with Singtel, its not surprising that this drawdown is much more due to the banks than anything else.
The uncles will be happy that they can buy these stalwarts at a lower price.
But my thoughts are, why not just buy the STI ETF instead? Seems to me the returns you get even after dividends are the same if not lower for the banks, investing in the STI ETF is an opportunity should the SATS, Keppel become power houses of Singapore.
Patience. Cash is also a position. Cash is also a call option for opportunities.
When times its hard to find value, read up more on different businesses to sharpen your business prospecting knowledge.