Quite like STI ETF - simple to buy but doesn't mean no emergency exit risk!
Perference share is still traded like a stock during bad market condition - its stock price can plunge badly too!
Look at OCBC 5.1% NCPS 100 Weekly chart. It will scare the shits out of you! Even the fund managers have no guts to hold all and have to sell some.
Buying is simple but it may come to haunt you when you unexpectedly need to sell it to meet emergency cash need during very bad market condition. You may be doom!
You love its fixed dividend payment but at what Exit Pricing Risk? There is little capital appreciation and the highest is only $105 when some Greater Fools happened to buy them.
Stock market is a dangerous place to think of just fighting inflation, collecting fixed income and doing capital preservation. We should be doing money and portfolio management and risk control and then aim for both dividends and much higher capital appreciation.
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