You are absolutely correct, but its good performance over the past few years have convinced many people reit is no or low risk. They should be aware that reits tend to rise like bonds during good times but fall like equities during bad times.

However much it fall it will not reach the level we seen before, the golden age of reit is over for the next few years....

During Peak period of REIT, 10Y MGS is just trading slightly below 3%... no it is still about 3.7-3.8% so another 20% to go...

5% dividend.. no problem... 5% capital gain... not so sure if it is sustainable.

why press down yield.. higher yield better mah.. can accumulate more at cheaper price.

No not the bond.. if bond yield goes up.. then REIT and other divvy counters all come down in price to match the yield... so mah accumulate those lor..

still holding 70% cash...

This post has been edited by gark: Nov 22 2013, 12:02 PM

bond is valued daily according to market value, even if they dont sell, but the price comes down, the NAV comes down as well...

used up to purchase stocks loh.. like sushi, LLL8.. etc

The jolly money is from interest and dividend only.. no touch capital/capital gains.. This has been my discipline since last time..

Try it so at least you can enjoy life fully paid by your dividends...

This post has been edited by gark: Nov 22 2013, 12:25 PM

I am betting on year end/new year taper.. drop..

no no.... lets see how.

what to do? Capital accumulation is faster than i can invest them...

Dont want .. scared u all rob me...

This post has been edited by gark: Nov 22 2013, 01:43 PM

Nah maths for you...

http://en.wikipedia.org/wiki/Bond_valuation

You can use present value calc...



where:

F = face values
iF = contractual interest rate
C = F * iF = coupon payment (periodic interest payment)
N = number of payments
i = market interest rate, or required yield, or observed / appropriate yield to maturity (see below)
M = value at maturity, usually equals face value
P = market price of bond.

This post has been edited by gark: Nov 22 2013, 01:51 PM

Nowdays got internet easy one.. got online calculator...

got a simplified one here... http://www.calculatorpro.com/calculator/bo...ion-calculator/

market rate .. this one you need to guess/see/observe... especially on MGS 15 year yield + small premium which is the closest equivalent to your bond..

or you can back calculate from the first tranche yield/price

This post has been edited by gark: Nov 22 2013, 02:05 PM

still holding my amdynamic... i forsee MGS10Y yield will peak at 4.5% and BNM will not raise interest rate...

from last time i already tell you to reduce your bond allocation.. you now 30 yo.. should only hold 30% as bond...

A lot of people already rely on dividend income and no need to work liao as the dividend > expenses...

Here is an motivational example..a very kiamsiap investor in late 30's, work as pencil pusher accountant...

http://singaporeanstocksinvestor.blogspot....s-and-more.html

9M 2013 he already received a total $92,872.65 in dividends... full year easily 120k...now >2x his working salary

He sets target every year for passive income to achieve...

IF he can do it, with good discipline.. why not you?

Learn to aim higher...

P/S he is not a lazy passive income investor.. he trades (buy sell) regularly, and the capital gains from the trades he will put into his passive income generating to generate even more revenue for trading. A very good approach I am copying...

This post has been edited by gark: Nov 25 2013, 01:21 PM

Best way to learn is to plunge headfirst.. learning how to swim before jumping in might be too late already...