Market has recovered last week and continue to sustain today. Most of the counters are back in the run and especially the REITS which have been beaten for a while, has made some gains. At the current price, it seems attractive to invest as passive income given that most will give about 5 to 6% dividend.
However, after thinking through, I have stopped my itchy finger from pressing the 'BUY' button.
And here are the reasons:
- Based on the broad index(chart below), there seem to be a reversal looking at past week candle stick but 10MA is still pointing down. Would it be a case of rebound after deep correction and then continue downtrend again?
- How much of the QE will Fed withdraw, no one knows. Will there be a shock?
- And when interest rate increases, how will it impact REITS, especially those who's debt is on the high side.
- 10 yr SGS bond yield is close to 3%, is 5% from REITS attractive then?
As much as I want to collect them for passive income, I dont want to caught myself losing, due to capital loss.