The sharp fall in prices of many Straits Times Index ("STI") Stocks was unnerving. REITS market value slided down on fears that interest rates will rise when Ferderal Reserve Chairman Bernake announced the winding down of money printing in future due to improvement in the US economy. I sold off close to 50% of my portfolio in order to preserve my capital and unrealized profits.
Luckily, the slide in the STI was only temporary. Market regain most of its confidence and investors went back. REITS prices corrected to a more decent footing to reflect rising interest rate risk which presented excellent opportunities for one to re-allocate their portfolio. I also offloaded the Genting Perpetual Bonds which will devalue in face of rising interest rates and use the proceeds to invest in Suntec REITS which will complete it's Asset Enhancement initiative next year. This in turn will boost rental income and I am expecting at least a 20% capital appreciation.
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