Wednesday, 6 July 2016

Portfolio Updates: June'16

June'16 has been a really interesting month for me personally although I made no moves in the market. 

#BREXIT anyone?

Hahaa. Okay. So despite the big claims made in my May'16 updates where I said I will assess a couple of stocks, I ended up not being committed to my words again. Apparently, I got busy and lazy during June'16 with my work and courses, and the market volatility made me hesitate to pour more money into the market (I know I know, the market is always volatile and there is never a good time to buy).

In fact, I was even contemplating to sell off some of my stocks to bolster my warchest in view of the market pessimism.

So while I was weighing my choices between pouring more funds into the market in case #BREMAIN occurs, or to sell off some of my stocks, I got inflicted with this sickness called "paralysis by analysis" and did nothing subsequently for Jun'16.

Which was a really lucky move by the way! While I did not manage to take advantage from the market crash on the day when #BREXIT was confirmed, I benefited from the subsequent market recovery the following week.

Which was a real surprise to me!

For one, I expected the #BREMAIN camp to win the referendum. Afterall, pre-poll surveys were done and the #BREMAIN camp was leading. Guess their sample size weren't sufficient. Either that or the survey was manipulated.

I like to believe that the survey is manipulated. It's easy to do so isn't it? Poll more of the Scots instead of the Brits and tada! You'll get the result of #BREMAIN leading:p

Secondly, when it was announce that #BREXIT has won, I expected the market to be on the downtrend for a couple of days at least. Yet, beside the first day when the result was announce, the market trended up rapidly for the following week, which I benefited from as I was still mainly vested in the market due to my mind paralysis.

So what have I learn from this whole event?
  1. I am still a novice in investing. 
  2. Never try to predict the market, elections or referendum. We may get our guess right. But what happen if we are wrong? Are we prepared for the consequence of a wrong guess?
  3.  Be prepared for the consequence of a wrong guess. It is more important to prepare our portfolio to take advantage of both sides of the guess, than to actually get our guess right.
Okay. I am going back to the updates of my portfolio now.

I am actually pretty glad to report that my portfolio has exceeded the S$50K mark! In fact, my portfolio stands at around S$51.5K currently and I am just short of about S$5K for this year to hit my target for my journey to a million:p

Portfolio updates for the month of June'16:

  • No dividends was received for the month of Jun'16. Sadly :(

  • $1600 was deposited into the portfolio.         

Actions I will take for July'16:

  • If the price of STI ETF drops below $2.50, I will make a purchase of about S$2500 worth of STI ETF. A further drop of 20% to $2.00 will see me funneling an additional S$2500 into STI ETF.

  • S$2500 will be vested into VWRD when the price of VWRD drops to USD$52.78, which is a drop of 20% from the last purchase price of USD$65.97. A further drop of 20% to USD$42.22 will entail me making a further investment of S$2500 into VWRD.
  • If I follow my asset allocation strategy strictly, I have to make further entries of approximately S$1500 each for stocks in my Income Stocks and Growth Stocks categories. For a start, I will begin with the assessment of Far East Hospitality REIT, Ascendas Hospitality Trust, Aimsamp REIT, ARA Management, Kingsmen Creative, Sembcorp Industries and Ho Bee Land. 

  • In the event that the VWRD and STI ETF does not drop to my target price, I will re-balance my portfolio in the month of Nov'16 accordingly to my asset allocation strategy.

Missus PassivePeon treated me to a ride on the Singapore Flyer for no apparent reason one day. Love her and the surprise much more than the ride itself😘

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