Market have been choppy for the past two months but merciful to the portfolio. One keynote is that many yield stocks have moved up much that uncovering good yields for their perceived risks becomes difficult. Low savings rate make keeping cash difficult. While it enables an investor to take advantage of mispriced opportunities in market downturns, a non direction market and 5% inflation per year essentially results in 50% of the money losing purchasing power. I made the decision to shift some cash into M1 and SPH. I took profit on LMIR, Keppel Corp and Yangzijiang. Hindsight I should have collected more of M1 and SPH. I set a few criteria for lower risk yield instruments:

• historically lower volatility. This enables the investor to shift to cash during initial phase of big drawdowns
• a yield of 6%
• stable, predictable cash flow with business defensive in downturns
• not at excessive valuations

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