Thank.Originally Posted by Laguna
So far I hv Petra food (5%) & banyan Tree 6.25%. LTV 60%) with a small size issued bond. I am lucky that my banker is able get a special waiver for my Petra food bond with LTV. If not, I got to top up or sell at least 1 to 2 of my profitable bond holdings.
Banyan Tree (6.25%) is another small iussed bond with illquid trading price. Sometime, there is no seller/buyer price. To sell right now is 102.8 due to good mkt condition. If crisis come, sell price maybe below 100.
I just need till end of Dec13 to fulfill close to my goal set out to earn from bond from 2011 to 2014. One year earlier tgt (Dec 2013) due to most of the bond price has rised above my coupon payout per year. Now I dont feel comfortable holding many bonds till 2014.
I feel very very uneasy with all the printing of money.Our governemnt is so determine to stabilise the property price with all the CM. Even to buy car, U need to pay 40% cash downpayment. I feel that the government is seeing a big storm in 1-3 yrs time. I hope it will not be a much bigger one than the 08/09.
I did accumulator on Citigroup in Jul 2011 for almost a year. I ride through the up & down (as low as US$25) Accumulate @US$35.3 . After one year of accumulating citigroup share , I got a total 6500 shares (US$232k). I manage to sell @US$38 with a profit of only US$17500 last year. If I sell now @US$46. I will be earning US$70k. This what I call emotional trading behaviour. We will probably sell at a less profitable price. OLD habit die hard. But now, I make less mistakes now on trading stock since 09.
I also hv done twice on capitaland accumulator (S$500k) in 2011. I accumulated the capland ave [email protected] for 3 mths. 1s batch sold @ 2.88. 2nd batch @3.03. Again, emotiomal waekness trading behaviour.
That is why I prefer bond in 2011 as it is get rid 80% of my emotional trading weakness in stock. But bond in 2014 maybe risky with leveraging. Investing is getting more & more complex . Too many noise from financial newspaper, media (CNBC/bloomberg) , investment seminar, unpreditable politician words from their mouth etc that it confuse me.
Buying bond need less monioring with less volality. It allow me to hv more time to spend with my kids & travel for short oversea holiday.
rdgs,
Vic