Wednesday, June 14, 2006

Bear Mkt Protectors?

It has been said that stocks that provide high yields tend to be good bear mkt protectors.

What started out as 2 equally weighted portfolios suffered drastic falls during this period.

The first table shows 9 REITs listed on the singapore stock exchange. the returns to date for this 900k portfolio is -6.95%


The second table show 9 high yielding stocks picked out by DBS vickers. the returns to date for this 900k portfolio is -11.24%


It remains to be seen whether the return will stay that way. we still have yet to include the average div yields into the returns. If the returns, stayed this way for the rest of the year, on an average 5% div yield for REITs, the negative returns would be reduce to -1.95%.

Will keep everyone up to date.

1 comment:

Anonymous said...

problem is the interest rate...

when interest rises, high yielding stocks becomes less attractive.

also, if there's a recession, the companies' bottomlines tend to be affected.