$Lion-phillip S-Reit(CLR.SG)Context:I noticed that S-REIT prices were dropping, and I saw it as a potential opportunity …

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

Context:

I noticed that S-REIT prices were dropping, and I saw it as a potential opportunity to add to my existing position at a lower price. Since I was already interested in S-REITs for their potential distribution income and long-term growth, I thought that buying more at the lower price could help reduce my average cost. However, I understood that the price decline could be caused by factors such as interest-rate expectations, rising financing costs or weaker market sentiment, so I wanted to take advantage of the lower price while keeping a longer-term perspective.

My trade:

I added to my S-REIT position because I wanted to lower my average purchase price and increase my exposure to the sector. Rather than buying at a higher price, I saw the market decline as an opportunity to accumulate more units at a potentially more attractive valuation. My intention was to improve my overall entry price while continuing to benefit from potential distribution income and future capital appreciation. However, I remained aware that buying at a lower price does not necessarily mean the investment has become cheaper in fundamental terms, and further price declines could still occur.

Takeaway:

Next time, I would evaluate the reasons behind the price decline and check the REIT's fundamentals before adding more units, rather than focusing mainly on lowering my average cost.