$Lion-phillip S-Reit(CLR.SG)Context:I noticed that S-REIT prices had been dropping recently, and I saw this as a potenti…

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

Context:

I noticed that S-REIT prices had been dropping recently, and I saw this as a potential opportunity to lower my average cost. I believed that buying at a lower price could improve my overall entry price and potentially increase my future returns if the market recovered. Although I was aware that S-REITs could continue to face pressure from interest rates, financing costs and market uncertainty, I viewed the price decline as an opportunity to add to my position with a longer-term perspective.

My trade:

Yesterday, I added to my S-REIT position as I wanted to take advantage of the lower prices and reduce my average cost. Rather than buying at a higher price, I saw the dip as an opportunity to accumulate more units at a more attractive valuation. My decision was based on the potential to earn distributions over time and benefit from capital appreciation if market conditions improved. However, I also recognised that adding to my position would increase my exposure to the sector, so I needed to ensure that the additional investment remained within my risk tolerance.

Takeaway:

Next time, I would assess whether the price drop is justified by market conditions or the REIT's fundamentals before adding more units, rather than focusing mainly on lowering my average cost.