Portfolio Update for October 2022

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This will be a relatively short post, just to update on the transactions for the month.

For the month of October, volatility continues to be the main theme in the world markets.  In the first three weeks of the month, markets was submerged in a pessimistic note.  The news of persistently sticky inflation data (especially the rising core inflation) definitely helped to punch the markets right in the face, causing the markets to plummet.  This is made worst by the rising strength of US dollar and the plunging Japanese Yen.  Currently good news are also interpreted as bad news.  Tight labour market is concerning as it may mean that the FED still has room to further raise interest rates to fight inflation, spooking the markets even further.

For the month, my portfolio is totally wiped out.  This month marks the first time since March 2020 that my portfolio's value goes below my capital injected (including reinvested dividends).  It occurred on the back of the especially fierce fall in prices of REITs this month as US 10-year yields rose above 4.20% in the first 3 weeks of the month.  Even with the slight recovery and stabilizing of their share price on the final week for the REITs (when 10-year yields fall slightly closer to 4.05%), my portfolio remained badly impacted as my portfolio is REITs-heavy.  

However, as mentioned in previous post, I will continue to hold on to all my shares as I believe this is just a macro-hurdle that the REITs have to cross.  Inherently, their operations and businesses are not badly affected.  Any further buying in now will be strict, adhering to the rules I set for myself.  REITs will only be bought when its yield is above 6.5%, and non-REITs will only be bought when its yield is above 5%.  Do note that these percentages may be increased in future if the US 10-year yields increase further beyond 4.5%.  In addition, as the big tech Q3 earnings' results were not good, the plunge in their share price resume in the last week, with META, Alphabet and Amazon falling below US 100.00.  The non-rosy outlook from Microsoft and Apple made them hard to support the S&P 500.

For this month, I injected approximately SGD 10K capital buying the following shares:

SGX:    Frasers Logistic and Commercial Trust

             Hong Leong Finance

             Mapletree Industrial Trust

             ParkwayLife REIT

             Singapore Technologies Engineering

US:       Google-C

             Microsoft

             Tesla

             VOO ETF

In addition, I have also reinvested dividends on the following shares:

SGX:    Hong Leong Finance

             Mapletree Industrial Trust

Total Portfolio Value has crashed by approximately 3.9% to around SGD 418K, which basically means the portfolio is collapsing for the month despite capital injection.  How long will the bear drag on for?  As I stated in the previous post, I remain as clueless as ever.  The only thing I can do, and will continue to do, is to slowly DCA into the market, and also reinvest the dividends back into the market to compound my portfolio, while strictly adhering to the rules I set for myself.  Shall continue to stay positive, collecting my dividends in the upcoming months!

Comments

  1. Kkpang10 November 2022 at 16:19

    Down by 3.9% consider a very healthy portfolio. Cheers.

    ReplyDelete
    Replies
    1. BFIRE10 November 2022 at 17:04

      Haha, thank you. Hope November will improve, since inflation numbers are coming down

      Delete

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