2015 Review

As we approach the end of the year, I'll take this post to take a look back at some of the highlights of this year for me (and the market) as well as some of the lessons learnt from them.

(Image source: stux, pixabay.com)

This has been an eventful year for the stock market, with the Chinese stock market falling from its peak, the devaluation of the yuan and the increase in the Fed interest rate. In Singapore, the STI has also had its ups and downs, but overall it’s down for the year. Commodity companies are starting to feel the effect of the decrease in the prices of commodities while office and retail rentals are showing signs of decline. Not a particularly good year for the investor, especially one that is just starting to enter the market (like myself).

For me this year, I've made a paper loss on my own investments and also learnt some lessons, like learning not to jump at the first fall and rather wait for things to stabilize a bit more before going in. But then, waiting too long and not taking action doesn't seem like an option either. Yeah, still having problems balancing the two...... But I've also started to take a more laid-back attitude towards investing as the year went on as well, didn't check the market as often, didn't worry as much, which is another thing that I've learnt. There's not point worrying, the market won't change because of you, so just make a decision and leave things be, worrying may only lead to bad decisions such as buying high and selling low.

Even though I have a paper loss, I think that it may be a blessing in disguise. Sure, I could've gotten the shares at a cheaper price now, but the prices which I got them at is quite good in my opinion (I just hope I'm right on this). The year has also been positive in that I've started this blog. Getting a chance to write down some of my thought related to investing and personal finance has been a pretty enjoyable journey. While there has been less time to write towards the end of the year and the topics that I want to talk about are declining, it's still enjoyable to spend some free time sitting down and writing these articles. It also sort of forces me to do something related to investing or personal finance a few times each week, which has led to me learning quite a lot and analyzing the different companies.

2015 may not have been a very good year for some of us, especially those invested in REITs and oil and gas companies. I've avoided REITs while the only oil and gas related company I have is Sembcorp Industries (which has Sembcorp Marine as a subsidiary). But it has set up some things to look forward to in 2016. With share prices lower, higher returns are more likely and the introduction of the Singapore Savings Bonds and the increase in the Fed interest rates makes it easier to invest in Singapore government bonds as well as making an increase in yields likely.

How has your 2015 been?

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