Wuhan Coronavirus Impact So Far- Shorting SREITS?

This week has been interesting with initial market sell down on 3rd Feb 2020 (Monday) immediately upon market opening and then stocks regaining much of their lost value over the next 2 days. It had only been a minor correction so far despite the worsening Wuhan Coronavirus epidemic and slowing down of economic activities in East Asia countries. Also, there are many online postings by different investors discussing their strategies during this health crisis. I am not sure why some people are viewing this crisis as a dooms day scenario that will lead to wide spread and prolonged economic shambles.

1. Selling off Frasers Centrepoint Trust ("FCT")
This is a defensive REIT which focuses on suburban retail malls. The price per unit has been surging and close to S$2.90 at one point in time. I have sold off 10,000 units of my holdings in the S$2.80+ range. However, I am of the view that for the long term, FCT will continue to grow due to strong pipelines from the sponsor and thus keeping the other half in my cash portfolio.

2. Accumulating ComfortDelGro.
ComfortDelGro is near its 52 weeks low at the current pricing down from a record high of S$2.90 per share during the past year. This is attributed to disappointing prior quarter results release as well as the expected worsening results due to disruption to its transportation services in nine China cities and closing of driving centres. Singapore taxi operations continue to face pressure from ride hailing apps operators as well as an expected slowdown due to the rapidly worsening coronavirus situation in Singapore which has a second day of new local community spread being reported.

My view is that the coronavirus is not as deadly as SARS or MERS. Fatality rate should be further reduced with better anti-viral treatment being developed by the medical practitioners and drug companies. Also vaccine development are in place and should be out in another 6 months. Please see my previous post on "Will The Spread of The Wuhan Coronavirus Led to East Asia Recession Similar to SARS in 2003?"

Nevertheless, with its strong financial and other defensive business segments, ComfortDelGro will recover in the longer term. Its current dividend yield is around 5%. I have thus started accumulating more of its shareholding and happy with the the current dividend payout while waiting for its share price to recover from future improvement in business operational results after the current health epidemic crisis.

3. Selling off Capitaland Retail China Trust ("CRCT") and repurchasing it
This is a hands itchy situation as I have  decided to make some quick bucks. Sold off 10,000 units at S$1.63 when I noticed the selling off momentum and then a few days later, managed to re-purchase 10,000 units of CRCT at S$1.54 per unit. The question as always to me is whether the current epidemic spells the end of China or will China bounce back?

In the long run, I think that CRCT will definitely recover after the Wuhan crisis. Hence will just hold on to it.

Parting Thoughts:
I am looking forward to accumulating more of ComfortDelGro and CRCT if the current health crisis worsened. My thoughts are so far, we have not seen the worst of this current Wuhan virus outbreak. Cases have not peaked yet but I remain optimistic on medical advances as well as upcoming warmer season in China which should bring the virus under control.

Another interesting observation I have noted is some investors began placing huge bet on shorts for REITs as such group perceived SREITs to be severely overvalued and will crash in value within this year. Maybe this will come true during this current coronavirus crisis?