While the pending 2021 Budget statement is upcoming at 3PM today. What's interesting about this is that I stumbled upon an article covered by Bloomberg titled; Banks, Property Stocks Could Be Losers in Singapore’s Budget
Summarizing the article in short will be - STI will unlikely benefit from the budget.
While STI is heavily skewed in banks and real estate (REITs) names, these names are unlikely to benefit much from the 2021 Budget. One main reason will be how Singapore has already started to recover and function normally as an economy moving towards pre-Covid19.
The focus for the budget will be likely revolving struggling sectors; aviation and tourism. On the other hand, sectors that might help Singapore grow in the future will also be in the focus; technologies and green companies.
Some of such blue chips to focus on will be SATS, SIA, SIA Engineering, Genting Singapore, Jumbo Group, etc etc.
I might be looking to divest my portfolio from Singapore market soon, and look into investing in HK market for long-term as how Singapore has been very lackluster in growth. While dividend gains might be great but flat growth is very turn-off especially that my trading portfolio is growing at a faster pace than my investment portfolio. Or another way might be just divesting from some of the weaker names I have in my portfolio to high and stable dividend generator such as AREIT. Personally I am also looking to invest in REIT with a main focus in foreign exposure.
What's your take on long-term investing?
Disclosure; I am holding SATS and am looking to cut my position once it hits close to SGD5, bought it as a mid-term swing trade position knowing that airlines will eventually recover and SATS will be the first to benefit from it.
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