As we approach the end of the year, it is time to review the performance of OCBC share price. I had bought 6000 OCBC shares in August 2021 but exited when OCBC share price was trading at $12.40. The key reason for my exit was the unpredictability of OCBC share price.
When I invested in OCBC in August 2021, my thesis was that bank stocks should perform well in high inflationary environment as high interest rates generally lead to higher net interest incomes for the banks. Back then, I had anticipated that US Federal Reserves would hike interest rates in 2022 and that Singapore bank stocks would be the biggest beneficiary from the rate hikes. However, OCBC share price had not taken off as I have envisioned it to be. And I was humbled.
Year-to-date, OCBC share price has risen by only about 8.3%. While this is a really decent performance,...