Review of my Portfolio (May 2022)

Review of my Portfolio (30/05/2022)

• Total unrealised loss = - 6.1%
• Nasdaq had enter the bear market (S&P500 have not), in the red again and i do not have any complicated strategy to counter the bear, like some investors, since nobody can predict the market, i just stick to my plan.
• Continue to earn more money, pour money into the market monthly, buy undervalued companies/sectors and look for great dividend stocks, like what i always do.
• Always follow the rules "invest the money you don't need"

Added in May

Growth portfolio - GOOGL, XLY, QQQM

Dividend portfolio - J69U, BUOU, BST, BSTZ, Allianz income & growth

Portfolio weightage

• BST & BSTZ, both are CEF, had been newly added to my dividend portfolio.
• The reasons is mainly (1) it pay monthly, predictable and consistent growing dividend (2) currently due to market correction the stock price dropped, mainly because it is focus on tech, thus the dividend yield increases. Current yielding ~5.8% and 7.1% after 30% witholding tax.
• I will only DCA into these 2 funds while the market is down, because once the stock price recovered the dividend yield will most probably fall back to 2 to 3%, after witholding tax, which is less attractive for someone looking for cashflow.
• Also note the fund is actually quite volatile. For dividend portfolio, i do not want to have too much volatility, as this porfolio is meant to be defensive.
• For growth portfolio, i newly added QQQM, when everything is cheap, not enough money to buy everythings, so just buy the index. 😆

Dividend Recieved

• YTD dividend recieved = SGD$2,861
• There are lot of companies paying out dividend on May, thus there is a sharp spike in divdend.

Opinons

• Market like to take turns to punish different sector, few month ago is communication service, now is consumer discretionary. So i added some XLY, one of the most overvalued sectors, however i think this won't last long as it started to trend back again, we should monitor next month again.

• Nobody can predict the market. But we can anticipate what the market will do, to be mentally prepare and have some expectation. It is a 50 - 50 chance that the market may rebound or it may continue to crash another 15%, based on the long term trend.

• On a shorter term, the S&P is still trending down. Having a strong resistance at $430.

• What is the worst possible outcome?

Stock price is always related to the Earnings and PE, same for the index. If today, earnings and PE revert to its mean, PE =15, Earnings = 150. Then S&P500 = 150 X 15 = 2250. Which is about 50% drop from today.

• It is important to prepare and have plan if the market crash 50% for the next 5 years. Because if you dont have a plan, when it really happen you will do the wrong things at the wrong time.

• We dont know when a recession will happen, nobody know, but it can happen. When it happens, it will have an impact to your life and financial. Thus we must always be ready for it.

• if you wonder what is my plan and strategy:

https://seedly.sg/opinions/what-is-long-term-investing/

This will always be how i invest no matter what happen.

Conclusions

• You can always find great investment in the market. It always depend on the price you pay and your personal goal.

• You should always have savings. Invest the money you dont need. Never invest with borrow money. Heard that some take up loan to invest in Anchor protocol because of 20% yield, now they are in debt. This bring us to next point.

• Always focus on risk first, invest in asset that have real value and something you can put a price tag on it. After that, just let the market do its thing.

• Market is irrationale thus it can present to you with many opportunities. You do not need to buy at the exact bottom, as long you buy at a relative cheap price, you will do good over long term.

Previous Review

https://seedly.sg/opinions/review-of-my-portfolio-april-2022/