Rebalancing Of Portfolio Failed (Partially)

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This is going to be a short post just to share that my aim to rebalance my portfolio has failed.  As shared in previous post, I have planned to rebalance my portfolio to lower the percentage of REITs, and increase the percentage of non-REITs.  That would be done by keeping the amount of REITs I hold in my portfolio unchanged, and adding more non-REITs into my portfolio, namely United Overseas Bank (UOB) and Development Bank of Singapore (DBS).  

As shared previously, I hope to add shares of UOB into my portfolio below SGD 29.00 before XD, so I can benefit from the 6% dividend yield.  However, when my cash is ready, the share price has already propelled to above SGD 30.00!  When I consoled myself that I may have another opportunity after XD to add more shares below SGD 29.00, reality slapped me in the face as UOB's share price shot up above SGD 31.00 just two days before XD.  This probably mean that not only did I missed out on more dividends, I am also unable to buy the shares at my preferred buying price, as it is unlikely for the share price to drop massively after XD, especially under current "fear of missing out" (FOMO) sentiments.  As expected, after a momentary dip in share price, it rose again.  All in all, I have targeted to add a total of 600 shares of UOB into my portfolio in this rebalancing, but in the end I have only managed to add 400 shares. 

Likewise, I have also planned to add shares of DBS into my portfolio after XD and XB, when my cash is ready.  Similar to UOB (or should I say, with a more surprising propelling trajectory), DBS's share price rocketed to a very high level before XD and XB, such that after XD and XB, the share price only experienced momentarily dips in both respective dates.  In moments of hesitation, all I can see is that the share price sky-rocketed again.  This FOMO sentiment is kind of scary, and not one I would like to chase after.  All in all, I have targeted to add a total of 400 shares of DBS into my portfolio in this rebalancing, but in the end I have only managed to add 300 shares.

I am reluctant to chase after the share price, thus I am just going to conserve the cash in my war chest, and look forward to other opportunities.  This may be a wrong move as the share price of the 3 big banks may just continue to propel further to all time highs, and thus missed out on the opportunity.  From another perspective, this may also be a rational move as the probability of interest rate cuts is higher than interest rate hikes moving forward, whereby some form of correction may happen and I can scoop up some shares.  Nonetheless, as I have no idea how the share prices are going, I shall just remain nimble and continue to look out for opportunities.  It is always good to have some "bullets" on hand.  Who knows, my balancing act may fail completely and the remaining cash may go to the badly "bashed-up" REITs.  

After this rebalancing exercise, my portfolio allocation becomes a little more balanced, with REITs taking up 47.00% by market value, non-REITs taking up 36.40% by market value, and US shares taking up 16.60% by market value.  Currently I am rather comfortable with these allocations, and probably will add a little more to the US shares when a deeper correction happens.  That's all for now.  Barista FIRE, here I come...! 

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