Monthly Portfolio Update: July 2020

Hello there, it is earning seasons once again!

In one of my older posts, I anticipated earnings for this quarter to reflect the economic fallout caused by COVID-19. Yet contrary to my beliefs, Q2 results weren't bad at all for many of the companies or maybe I have been looking at too much tech.

Quickly go over my portfolio snapshot..

Most of my holdings are still in the red, 5 months after the correction in March. Nice to see some of my picks (Silverlake Axis, JB Foods) are beginning to move towards the break even point.

On the other hand, First REIT had been really disappointing lately with all the bad news. It is ironic for a health care REIT to have reduced patient volume during a pandemic because of a pandemic.

Health care is defensive? Well, not anymore!

So, definitely a lesson learnt here, invest in REITs with weak sponsors and you have a pretty good chance of getting "rekt". I guess I will continue to hold it for now since I haven't really thought what to do with it yet.

Overall, nothing much for my portfolio. I haven't executed any trades for the past 2 months. Perhaps no strong reasons to invest as STI has been on a downtrend and good US companies are having sky high valuations.

What are my plans from here?

I believe malls and offices remain necessary in a small country like Singapore. Hence, I will begin averaging down in that area using CPF first. After all, CPF is money that I can't touch for a very long time (probably never) while preserving cash for rainy days.

Next up, my crypto holdings..

What started out as an experiment quickly became a small sized portfolio which I'm glad I did after seeing ETH doubled recently. Unfortunately, it was a small amount of ETH but I believe there will be more bull runs in the short term since ETH is the "father" of many DeFi (Decentralized Finance) innovations out there.

More money will certainly pile into DeFi in the near future. For those who are unaware, what DeFi does is to provide an alternative to traditional finance. DeFi removes the need of a middle man for whatever financial services. In turn, it can lower fees or provide better rewards.

Soon, we will arrive at an age where we think that interest rate that banks have been lowering lately, is cute. For example, Aave currently offers 4.29% interest rate if you deposit your DAI stable coins with them. Celsius network (not exactly DeFi) offers 11.9% for stable coins in CEL tokens. How much interest do banks offer again? Haha

Of course, there is always some catch after all there is no free lunch in this world. If you somehow screwed up, there wouldn't be anyone to help you with it. No service hotline, no customer service etc. Hence, CeFi (Centralized Finance) will still be important for a peace of mind.

As for picks, I've been following GMGH. The best way to learn is to learn from someone who has gone through the process for years and became successful. Honestly speaking, it is not easy trying to read and understand the documentations. Thankfully, there are nice guys on medium who simplifies things further.

Disclaimer: The information listed here is strictly my personal opinion. It should not be regarded as investment advice. Please do your own due diligence.

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