Monthly Portfolio Update: Apr 2020 and Printing Continues
There wasn't much changes to my portfolio in April since market continued upwards for 2 months now despite everything bad that is happening. Yet, most of my holdings didn't recover to pre-COVID prices and hovered around the halfway mark. So I'm in a dilemma on whether to average down with my limited capital or keep waiting for a crash.
Let me first go through my portfolio..
For SGX listed equities:
Averaged down on Sasseur REIT at $0.57
Sold Sasseur REIT in my CPF at $0.63
Sold MCT at $1.78
My trades may seem kinda irrational as I wasn't sure how market would react to reduced DPU considering the popularity of dividend investing. On top of that, infection rate sped up, circuit breaker extended which left retail to suffer further. In the end, market's reaction was pretty mild and passive just like how dividend investing was "marketed" haha.
Since then, I think we have a better picture of the COVID-19 situation now. Although the number of infected foreign workers is still in the hundreds, community spread has dropped to less than 10 daily. So, it shouldn't be long before circuit breaker is lifted. However, I really hope to see a consistent 0 community cases before easing.
As such, retail industry should begin to improve due to pent up demand built up from 2 consecutive months of staying home. Hence, I think I can start averaging down slowly on retail REITs while being mindful of uncertainties.
For US listed equities:
Averaged down on SQQQ
This quickly became an expensive lesson since I didn't fully understand how it works but it should be okay for the short term.
For the time being, I decided not to invest anymore money into US equities simply because of the ongoing manipulation. Having too much magically printed money injected into the market and propping it up at unhealthy levels will have severe consequences. So to be safe, I think the most rational thing for me to do right now is to stay on the sidelines while waiting for it to fall like dominoes.
Credits to youtuber Tim van Helsdingen
How long would FEDs keep printing? Nobody knows but I believe it will last till US presidential election which I hope Trump doesn't get a second term. However if he does get reelected, a continuation to US-China Trade War will definitely happen. Then, market will once again be "crazy" volatile.
Other plans
In the mean time while waiting, I invested into Bitcoin. 2 main reasons: it is decentralized and designed to increase in value over time which is opposite of the current market situation. Don't think I need to write more about this since there are several other elaborate sources of information such as this podcast by Preston and Stig. Both are really good speakers with well thought points.
As a technically inclined person, the crypto space is becoming more intriguing with countless of real life applications that are beneficial to society. Even our government warmly welcomes such innovation.
I remember watching a podcast where someone dubbed cryptocurrency as the next internet. What happened to countries who didn't adopt internet? They are severely lagging behind in technological advancements.
Of course, investing in crypto is a completely different ball game. It's much similar to backing a Kickstarter project which there are many known cases of founders turned tail with the raised capital. If it does succeed, you gain an innovative product.
I will write more about crypto in the future so do check back if this interests you. Before that, let me get my toes wet first.
Disclaimer: The information listed here are strictly my personal opinion. It does not constitute as investment advice. Please do your own due diligence.
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