Follow Up On IREIT Global

Follow Up On IREIT Global

Hi Friends,


In my previous post, I sold my IREIT Global at 89.5cents (Refer to performance review here). Although I made a small gain of 0.58%, the price at which I sold was still a far cry from my original target price of $1.06 (Refer to initial analysis here). As I had said in my performance review, the reason for selling prematurely was to take shelter from Quantitative Easing (QE) from European Central Bank (ECB).

Today is the 8th day since I sold my IREIT Global, as expected ECB announced its decision to cut benchmark rate from the current 0.15% to 0.05% (Refer to the news here).  As a result of the QE, Euro dollar depreciated deeply aganist SGD (refer to the following chart).

The consequence of depreciating Euro is a fall in yield and net worth of IREIT Global. If the market is efficient, we should see this being reflected in the price of IREIT Global. I am glad that I made the right decision to sold my shares earlier.

While most the recommendations made by this blog involve betting against the market (with the believe that market is inefficient), it is never the aim of Rosesyrup Research to bet against Macro-Economic forces.


Cheers to those who follow this blog.