Isaac topIsaac Chin (right) contributed this article to NextInsight. For the past decade, he has been a full-time investor after a career as a chartered accountant.

“I didn't have an inspiring career as an accountant. Nothing great came out of it. If I have to work hard for a salary and put up with a lot of stress, I might as well work for myself - and earn more,” he said.

Now aged 65, he has reaped handsome 
profits from investing in property, equities and bonds.


2015, being the 50th
 year of independence of Singapore, has a special meaning to me.

I was born and raised in Chinatown, an economic backwater of Singapore then.


But in just half a century this island state has transformed into a modern metropolis, from third world to first, and ordinary folks like me have benefitted. 

With a solid U.S economic recovery in 2014 and FED monetary easing coming to an end, our regional markets also ended firmly with the STI closing 6% higher for the year.

These statistics will help explain the performance of various sectors of our share market:

2 Jan 2014

31 Dec 2014

Gain   

Comments

STI

3174  

3365

6%

Type A

Suntec
SingPost

1.545
1.34

1.96
1.92

27%
43%

I have heavily weighted on these Type A shares and derived maximum gain from their over-performance.

Type B

A Reit

Mapletree Logistics Trust
Mapletree Greater China Commercial Trust

2.22

1.05

0.835   

2.38

1.185

0.95

7%
13%

14%

These Reits paid about 6.5% dividend yield, and performed as well as Type C property heavyweights. Type B stocks represented a third of my total share Investment.

Type C

Cap Land

CityDev                         

3.02

9.34                               

3.31

10.27

10%

10%

The over-supply of residential properties in the next few years and the expected rate hikes in 2015 will limit the upside of Type C shares.

Type D

DBS

UOB

17.10

21.22                          

20.60

24.53

21%

16%

Financial stocks did quite well this year. Any meaningful correction in 2015 will offer an opportunity to buy into these two counters.

I consider 2014 a difficult period for most investors with the U.S economy struggling to recover, and numerous problems arose around the globe, particularly in the Middle East and Ukraine creating volatility and uncertainty in the financial markets.

Against this backdrop, I still managed to gain about $550K from my portfolio of $3.7M in short-term corporate bonds and equity.   

In 2015, I will keep my portfolio invested in property (50%) -- I own a condominium unit which is rented out for $6,500 a month -- corporate bonds (25%), and equities and Reits (25%).

In my view, an economic or political fall-out could come from the Middle East, Russia, Europe or even China in the next two years. The greatest challenge in 2015 is  how the financial markets would react to the FED rate hike, the sharp decline in oil price and the movements of major currencies.

Wishing everyone a Happy New Year.

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Counter NameLastChange
AEM Holdings2.3600.010
Best World2.440-0.040
Boustead Singapore0.9600.010
Broadway Ind0.128-0.001
China Aviation Oil (S)0.9100.005
China Sunsine0.410-
ComfortDelGro1.4600.010
Delfi Limited0.900-
Food Empire1.320-
Fortress Minerals0.3200.005
Geo Energy Res0.305-0.010
Hong Leong Finance2.4900.010
Hongkong Land (USD)2.8500.030
InnoTek0.535-
ISDN Holdings0.295-0.010
ISOTeam0.0430.004
IX Biopharma0.045-0.003
KSH Holdings0.250-
Leader Env0.0500.002
Ley Choon0.043-
Marco Polo Marine0.069-0.002
Mermaid Maritime0.139-0.003
Nordic Group0.315-0.010
Oxley Holdings0.0890.001
REX International0.135-0.002
Riverstone0.795-0.010
Southern Alliance Mining0.445-0.005
Straco Corp.0.485-
Sunpower Group0.210-
The Trendlines0.069-
Totm Technologies0.022-0.001
Uni-Asia Group0.8250.005
Wilmar Intl3.3800.010
Yangzijiang Shipbldg1.770-0.010