Just For Thinking ...
For those who are new lovers
of S-REITs who have been "seduced" by their attractiveness as regular
income stream; this may be an eye-opening comment for you.
Many thanks to real life investing lesson shared by Michael Tan here.
Uncle8888 at first thought that R-REITs are oversea stocks.
I had some similar experience - bought quite heavily in R-REIT, lost more than 60% on paper during 2008. By Feb 2009, I had many sleepless nights looking at my portfolio melting down. Then I made a drastic switch of my entire portfolio from R-REIT to B-REIT on Mar 2009 (super lucky, I must say - the super bottom then). Then by 2010, the portfolio looks better, I switch 50% B-REIT into BlueChip like KeppelCorp, SPH, Singtel, STEng, SembCorp, and etc. Today, the portfolio is looking at a good positive. Now, looking to trim it down slowly while it lasts. R-REIT=> Rubbish Reit, B-REIT => Blue-Chip REIT. Anyway, it was a very painful experience during 2008 and 2009.Reply DeleteRead?
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Hey Uncle, thanks. This R-REIT is my own self created term. But indeed, after all painful experience, the conclusion is not all REITs are as good as people think. Be careful and don't be lured by the high dividend yield. High dividend yield could also mean High risk taking! Often, this risk will only reflect when the market "wakes" up to the reality and these ownerships will be the first to fall but last to recover; in fact, if I have kept these till date, they have not recovered yet even today (i.e. still in negative positions). :)
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