Monday, January 23, 2017

Financials Favoured over REITS



I am sure, some of you may have seen this article in Straits Times last week.

http://www.straitstimes.com/business/invest/financials-favoured-over-reits

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.
https://www.google.com/finance/portfolio?action=view&pid=12&ei=jrmFWLHsKo66ugS6k6PADg

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.

Disclaimer :- 

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.


I am not immune to that, so please understand that any past success of mine will probably be followed by failures 

1 comment:

  1. Seems like your google link can only be view by you.

    This portfolio is empty. Add a stock or a mutual fund.

    ReplyDelete