Sell in May and Go Away

The Singapore stock market has another great run this year. Recover from the mini slump in end Feb and reach new high @4 May. STI is at another historical high. As the index hitting new high, the potential upside is limited, but the down side is pretty much bigger. Coming to May, the traditional weak month for stock market, the situation could take a turn quickly.

Risks on the horizon:
1. US economy slow down and housing market problem
2. China big stock market bubble
3. Unwinding of yen carry trade

Global liquidity might drive the stock performance for quite a while. However, if some events happen, the liquidity could disappear overnight. Fund withdrawal couple with hedge fund selling, we could have another big drop waiting for us. Of course, we cannot foresee the future, it might just keep going up. Market PE at 25 for Singapore, 50 for China? You never know.

Trimming my portfolio, as I hope the correction do come. So I can pick up some good stock. Currently, still holding on to

Capital Retail China Trust
Celestial
FJ Benjamin
Hongguo
Orchard Parade

Hope they would turn up well in next 3 years time. Meanwhile, waiting for chance to add new position to some interesting stocks.