I am sure, some of you may have seen this article in Straits Times last week.
The accompanying graphic shows clearly that financials outperformed reits in the trailing two months.
Experts opined that in future, financials will out-perform REITS.
A classic case of performance-chasing!?
However, I thought, let us evaluate this call over a couple of years.
So, without further ado, i created a mock SPH REIT Index portfolio for 100K SGD.
Here is a link to that portfolio.
My take is that chances are that this call will prove to be a case of performance chasing by "Experts".
The investment hypothesis is that financials will not outperform REITS.
The way I will evaluate is to examine the performance of this portfolio against the three banks at periodic intervals to evaluate whether this call was correct.
Full Disclosure : I have a small position in Keppel REIT and Cache Logistics Trust.
I am not an investment professional.
I encourage you to do your own independent "due diligence" on any idea that I write about, because I could be and probably am wrong.
Nothing written here is an invitation to buy or sell any particular stock.
At most, I am handing out an educated guess as to what the markets may do.
The market will always find a new way to make a fool out of me (and maybe, even you!).
Even the best strategies of the past fail, sometimes spectacularly, when you least expect it.