Tuesday, 21 February 2017

Staying Disciplined... Sell First, Buy Later?


It has been really tiring for me over the past few weeks as I was busy travelling for work and personal trips. While travelling, I will still make sure that I keep myself updated on the latest global news as well as spend time to catch up on the latest financial report/presentations.
I am monitoring the market trends in Europe continuously. Towards the end of 2016, I began to think of selling Ascott Reit due to the upcoming short-term political uncertainties in Europe, and I finally did it early this month with a small capital gain. Just in case if you are wondering why, France and Germany will be holding their elections this year; and Brexit is likely to be triggered. How will these events affect share prices?
My view is that such uncertainties would reduce investor’s confidence in the region for the near term. Businesses such as hospitality/retail are likely to be affected as tourists are likely avoid these countries due to greater risk of unrest - strikes, protests, riots, etc. On the other hand, such uncertainties could present pockets of opportunities to buy companies with business exposure in Europe at even lower prices.
With all these considerations, I decided that it would be worthwhile to sell first at this point and patiently wait for an opportunity to buy in when/if an oversold situation takes place. I am closely monitoring Ascott Reit & IREIT Global due to their significant (or full) exposure in Europe. So far, discipline has been the key to my small successes in my investment journey. Well, I guess it is definitely important to stay disciplined to my buying Target Price right? :)
Together, let us all Go & Huat ah!
GoHuat

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