Wednesday, February 3, 2016

What will I buy with $3000 (Feb 2016)?

Read more about First Stock Series.

Across the world, stocks continued to fall and we had reached a point where all the "psychological support levels" were broken. After throwing a few months' worth of budgeted investment money into the market, and suffering immediate paper losses, I also sat out for a large part of it to wait for the next level of new lows. Wherever the market would go in Feb would be anyone's guess. However, traditionally, before the Singapore Budget announcements in Feb, there would be a stock rally of some-sort.

1. SPH REIT* $0.91, 6% yield. If you buy 3,000 units, you can expect to get $165/year. Pros: Rental from Paragon and Clementi Mall are expected to be stable.

2. Singapore Technologies (ST) Engineering Ltd* $2.70, 6% yield. If you buy 1,000 units, you can expect to get $160/year. Pros: Cost-conscious management, ever-increasing defense budget that contributes to increasing revenue.

I am conscious that the overall sentiment is rather weary, and for a first-timer to decide to take the first plunge in a time like this is going to be hard, so I am recommending just two companies which I think will weather any shocks in Feb, if any more were to come our way.

There you go! Google search, read the financial statements, before putting your money on any stocks.

The above is by no means a fail-proof recommendation to buy. Stock prices fluctuate and buyers need to be aware of the risks.

The writer owns stocks marked *.

No comments:

Post a Comment