President Donald Trump has done it again, through his latest speech, it had resulted in DOW JONES hitting new high and thus rallying along the rest of the world indices including STI and blue chips.
STI has a good run since last year, it has given me more than 5% gain (excluding the dividends). From the TA indicators, it is in the over-bought zone, I thought it will be better to take some profit first. I still keep some shares as it gives me quite decent dividend yield. An interesting thing I observed in the chart below, in Apr 2011 and May 2015, there was a huge surge in volume and few weeks later, the STI index corrected. Last week, we saw the same huge volume surge, will it happen in the next few weeks?
I have also profit take and sold off my DBS holdings, it has been the star performer for me in 2017. The decision to sell for this counter is more maths than anything else. The average dividend over 10 years is 0.614cents. Based on 30 times, anything more than $18 is considered not cheap(last week it rallied above $19). The stock price may still go up further, nobody knows. But I will leave that last part to those with a strong heart.
In 2017 and beyond, we are expecting the market to be volatile and there will be many uncertainties, guess at some point we should take some profit off the table. After all, we invest because we want to make our money work, and if we dont take profit, we are not doing justice to our $$. Just my own views.