I bought a REIT at its peak price. I think i may have bought it when it was overvalued. I bought this REIT when i just started investing and this is my first buy. Now it is dropping non-stop. What should I do? - Seedly
 

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Asked by Anonymous

Asked on 05 Nov 2018

I bought a REIT at its peak price. I think i may have bought it when it was overvalued. I bought this REIT when i just started investing and this is my first buy. Now it is dropping non-stop. What should I do?

My objective for this REIT is to hold it long-term and i still believe in this REIT. Should i be worrying at this downtrend?

Thank you.

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Jonathan Chia Guangrong
Jonathan Chia Guangrong, Fund Manager at JCG Fund
Level 8. Wizard
Answered on 05 Nov 2018

Personally I'm in the same boat as you, buying into a couple of reits / trusts at their peaks and now watching them sink in the red. Hoping that eventually they'll rise back up somewhat and I can redeploy them elsewhere. That being said, if you decide to hold on based on your long term view of the counter, do ensure that you have the holding power and you don't need to drawdown on this portfolio for near future expenses. But if the management is making a mess of the reit, exit and redeploy elsewhere. Hope this helps

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My rule whether in short term trading or long term holding on when to cut loss is this.

When the fundamentals or technical chart invalidates your analysis then its time to cut.

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Jeff Yeo
Jeff Yeo, amateur Social contributor at School of social sharing
Level 7. Grand Master
Answered on 05 Nov 2018

depends a few factors

  1. Do you have holding power to hang on the the reit long term ?

  2. Are the core business of the reit sound and have stable grow in the portfolio ?

  3. do you need the money anytime soon ?

  4. Will investing in other investments reap you more ?

If 1,2 is true: i would personally hold on

if 3,4 is true: I would cut lost and reinvest

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