I have recently sold my Sun Hung Kai Properties Stock.
I have previously written why I bought the stock in Feb 2016 (read here).
Selling any stock to me is never easy.
In general, I am trying to increase my war chest and reduce my exposure to cyclical stocks.
As per one of my earlier post (read here), I wasn’t sure of the reason for the sudden rise in its stock price in recent weeks.
The property market in Hong Kong seems to be getting tougher with Sun Hung Kai Properties lowering margin (despite the strong sales). The company has been offering discounts and promotions, reducing costs to buyers by as much as 20 percent, to compete for sales as overall volumes declined 35 percent in the six months ended June from a year earlier (read here).
Incidentally, the China stock market has hit 7 months high amid optimism about the upcoming Shenzhen-Hong Kong Stock Connect and speculation about property merger and acquisition activity (read here and here).
I don’t foresee an imminent crash in the US market (well I suck at market timing anyway), given that the Yield Curve (the difference between the 30 Year Treasury Bond and 3 Month Treasury Bill rates) is still positive (click here).
However, like I say, I am slowly turning my portfolio to be more defensible (leaving stocks which I am comfortable holding even during a market crash), reducing my stock holdings extremely slowly and increasing my war chest.
leaving stocks which I am comfortable holding even during a market crash …
Able to share what these stock are?
You can check out my earlier post (read here)
Having said that I think Neratel’s fundamental has changed a lot in recent years. So I would probably count Colex, Riverstone, ISOTeam as some of these.
SMRT and Nirvana Asia might be in the list if they are not privatized and de-listed.
The more cyclical stocks in my portfolio would be CapitaLand, SIA, Sarine Tech….
There is a saying that commodity stocks fluctuation is inverse of the market index – eg. high commodity price will hurt profits of companies. So am not really sure about Golden Agri.