Portfolio Update for January 2023

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

For the month of January, the tables seemed to have turned.  A totally different atmosphere and sentiment overshadows the market, but in a good way.  Since the release of the December CPI data, followed by the release of earning results by the banks and big tech companies, the market has been on a propelling motion.  This is also supported by the taming PCE numbers released near the end of the month.  As of the last weekend of January, the DOW, S&P500 and NASDAQ has jumped by 2.54%, 6.44% and 11.89% respectively (Tesla alone has skyrocketed by 64.57%), just within a month!  Even the STI has climbed by 4.57%, boosted by the performance of the banks and recovery of the REITs (however, jitters returned to the markets in the last 2 days, as investors awaits FED decision on interest rates).

Will this spectacular performance continue to propel the markets upwards for the rest of this year?  Sentiments are looking positive now but I remain cautious.  The market has priced in a 25 basis point increase in the upcoming FED meeting.  However, if the FED feels the market is too hot, and may thwart their plans in continuing to tame inflation, FED may turn hawkish once again to punish the markets with a 50 basis point hike.  Nothing is impossible at this juncture, so I continue to hope for the best and be prepared for the worst.

For the month, my portfolio has recouped most losses, thanks to the boost to bank shares and the recovery of the REITs.  However, excluding reinvested dividends, the portfolio still remains in the red. With the US 10-year yield remaining below 4.0%, and the weakening US dollar, I hope that the REITs can continue their recovery in February.

Regardless, I will continue to hold on to all my shares as inherently, all their operations and businesses are not badly affected.  On the flip side, one thing I will focus on this year will be the impact of the elevated interest rate on the distribution per unit (DPU) of the banks and REITs in my dividend portfolio.  As an income investor, I hope the high interest rates have limited impact on dividends payout, and the distribution from the REITs can maintain or continue to grow.

For this month, I injected approximately SGD 4.1K capital buying the following shares:

SGX:    Hong Leong Finance

             Oversea-Chinese Banking Corporation

             Mapletree Logistics Trust

             Mapletree Pan-Asia Commercial Trust

US:       Microsoft

             Tesla

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

SGX:    Mapletree Logistics Trust

             Mapletree Pan-Asia Commercial Trust

Total Portfolio Value has finally turnaround and increased by 7.78% to around SGD 461K (due to the optimistic sentiments in US market and recovery of the REITs), which basically means the portfolio is recovering for the month together with capital injection.  I will continue 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 but remain cautious, while collecting my dividends in the upcoming months!

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