Portfolio initial allocations focus on blue chips with stable earnings, strong cash flows and consistent dividends.
Venture, Cerebos and SingPost should yield a consistent 12.5% , 10% and 8% p.a. respectively.
Later purchases focus more on cyclicals and high beta stocks.
The rationale for market entry in April 2008 was due more on emotional reasons.
Subsequent purchase in December 2008 was influenced by the low in October 2008, which saw it traded below 1500 during intra trade, forming a long tail. Then in the November low (first red circle), it failed to break the previous low set in October, signifying an early bottom. And within the next few days, the short term downtrend was broken (first red line), which prompted me to buy further.
Fortunately, the March low did not cause further downside. STI subsequently gapped up (second red circle) which resulted in the March to April rally, breaking the medium term downtrend in the process.
My next purchase came a few days ago when the STI falls momentarily before gapping up (third red circle), which surprises everyone. Looks like the rally is set to continue with some more steam.
AS at 18th August 2009
Realised ROI : 80%
1st Dec 2008 : Cerebos 1000 shares @ $2.48
1st Dec 2008 : SPH 1000 shares @ $3.43
1st Dec 2008 : Venture 1000 shares @ $4.00
9th Dec 2008 : Singpost 5000 shares @ $0.73
16th Dec 2008 : SembCorp Marine 3000 shares @ $1.66