Portfolio Update for April 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 April, volatility has once returned. The March CPI data released in the first half of the month showed that inflation is cooling down, and that drove optimism in the markets. Investors are pricing in that the FED will pivot and start cutting rates in 2023, despite FED's repetitive iteration that there will be no rate cuts in 2023. However, in the second half of the month, jitters returned to the market almost immediately as investors are worried for the 1st quarter earning results. Analysts have commented that this quarter's earnings may be the worst earnings by the companies since 2020. This period is always the period that I look forward to, as well as remain slightly jittery. I am looking forward to it because it signals that dividends are coming in from my local Dividend Portfolio soon, while I remain jittery because it will cause the share price of my shares in US Growth Portfolio to fluctuate. However, I do not sell on news, as long as there are no declines in any of their fundamentals, but instead looking to nimble when there are price corrections.

First to release the results were the large banks, whose earnings surprised on the upside, mainly due to depositors shifting their monies from smaller regional banks to the larger banks which are deemed to be safer. Similarly, the earnings of the large tech companies released over the past week also mostly surprised on the upside, pushing share prices of certain shares to 52-week high (see Microsoft and Meta).

Closer to home, the results of the Singapore REITs that I hold were under stress from the high interest rates. Although many REITs posted an increase in their quarterly revenue and net property income, but some saw declines in their distribution per unit due to higher operating expenses, due to utilities, higher cost of loans etc (see Suntec REIT, Mapletree Industrial Trust and Frasers Centrepoint Trust). Nonetheless, there are still some REITs that still managed to report positive earnings results and business updates.

Overall, the jitters and uncertainties in the markets largely remains, especially when the FED officials are still relatively hawkish, and even mentioned the possibility of a couple more rate hikes from current rates, although the dot plot by the FED suggests that the rate hike in May will be the last. The conflicting information definitely do little to calm the markets and showed little signs of the direction of the markets moving forward.  Adding to the troubles is the revival of the banking crisis.  First Republic Bank is back into the limelight, and how this crisis will eventually turn out, we can only wait to see how it pans out.  Regardless, I will just continue to hold on to my portfolio, and continue to reinvest dividends collected.

For this month, I injected approximately SGD 1.9K capital buying the following shares:

SGX:    Frasers Logistics and Commercial Trust

             Mapletree Industrial Trust

US:       Tesla

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

SGX:    Mapletree Industrial Trust

Total Portfolio Value has risen slightly to a new high of around SGD 479K including capital injection, mainly supported by the rising share prices of big tech in US in the last week, with their favourable earnings report.  This further emphasize the importance of diversification, which limits the profits but definitely cushion the decline.  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.  Next month is the dreaded month of May.  Will the saying "sell in May and go away" impact the markets to a large extent this year?  It is anyone's guess.  I shall not be too worried with what I cannot control, and just continue to stay positive but remain cautious, while collecting my dividends in the upcoming months!

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