Lion-phillip S-Reit

Bloodbath is starting! Lets go

When will the selling stop? High beta stocks are getting hit the hardest as investors pull out of the stock market to turn to bonds with higher yields amidst a relatively unstable equities market and expectations for yet another interest hike soon.

$Lion-phillip S-Reit(CLR.SG)

Context:

I noticed that S-REIT prices were dropping yesterday, and I saw this as a potential opportunity to lower my average cost by adding to my existing position. Since I was still interested in the sector's potential to generate distribution income and provide long-term capital appreciation, I felt that buying at a lower price could improve my overall entry price. However, I was also aware that the price decline could reflect market concerns such as interest-rate movements, higher financing costs or weaker investor sentiment, so I wanted to take advantage of the lower price while maintaining a longer-term investment perspective.

My trade:

I added to my existing S-REIT position yesterday because I wanted to lower my average cost while the prices were falling. Rather than making a large purchase at once, I decided to add a manageable amount to my position so that I could continue monitoring the market and retain some capital for future opportunities. My main reason for buying was to improve my average entry price and potentially increase my future distribution income if the REITs continued to perform well. However, I recognised that buying at a lower price does not necessarily mean the investment has become more attractive, especially if the underlying fundamentals have deteriorated.

Takeaway:

Next time, I would assess the reasons behind the price decline and review the REITs' fundamentals before adding to my position, rather than focusing mainly on lowering my average cost.

Looking forward to REITs share prices adjusting upwards, I believe they’re current abit undervalued as compared to the yield they offer.

I believe the market pullback is healthy especially in tech. Much needed if we want the bull market to continue which has been pretty resilient considering all the headlines and narratives.

money rotating out of AI related stocks and moving into safer stocks and places. reits moving upwards finally after declining for so long, hope it lasts. for the brave and tech believer, now also good chance to dca into those tech stocks that youre aiming.

Good to see yields dropping, but.. people are still expecting military actions. Midterms is also coming soon, uncertain on what Trump is going to do next

The market reaction highlights the distinction between beating current expectations and demonstrating the ability to sustain future growth. For investors, the key questions are how quickly supply bottlenecks can ease, whether pricing power can offset cost pressures, and whether elevated AI-related semiconductor spending translates into stronger cash flow. Until visibility improves, strong results alone may not support higher share prices, particularly if valuations already reflect substantial growth expectations.

A key lesson is that evergreens are evergreens. A timeless advice is to hedge with bonds. Even when investors were shorting bonds, good to keep a balanced portfolio. Now, with chip stocks crumbling, investors have fled for safety ie Treasuries, leading to a rally

AI risk seems to increase, or at least investors require real return…