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

Context:

I was looking at my existing S-REIT position after noticing that the price had declined from my previous entry level. Since I still believed in the longer-term potential of the sector and wanted to build my position gradually, I saw the price drop as an opportunity to average down my cost rather than react to the short-term decline. My thinking was that the lower price could potentially provide a more attractive entry point, while continuing to give me exposure to distribution income and the longer-term recovery of the sector.

At the same time, I was aware that the price decline could be caused by factors such as higher interest rates, financing costs, weaker market sentiment or concerns about property valuations. Therefore, I did not want to assume that the price would recover immediately. I viewed the DCA approach as a way to gradually build my position instead of trying to predict the exact bottom.

My trade:

I added to my existing S-REIT position after the price had fallen, mainly because I wanted to DCA and lower my average entry price. I did not add a large amount at once, as I wanted to keep some capital available in case the price declined further. My main reasons for adding were the lower valuation compared with my previous entry price, the potential distribution income and my continued long-term confidence in the underlying real estate exposure. I also felt that gradually increasing my position was more suitable for me than trying to time the market perfectly.

Takeaway:

Next time, I would set clearer price levels and position sizes for each DCA entry beforehand, while checking whether the price decline is due to temporary market sentiment or a genuine deterioration in the REIT's fundamentals.