Cash / SRS / Crypto Portfolio
Performance Indicators / Dividends (TradFi Portfolio only)
- YTD Time weighted return: -11.97%
- XIRR since portfolio inception in 2013: 16.82%
- Dividends collected YTD: SGD 6,584.53
Note: I don’t provide details or returns metrics on my crypto portfolio publicly.
The crypto rollercoaster continues
October was another wild month for crypto with significant drawdowns in the crypto altcoins. At one point I had round tripped all my crypto gains just prior to the US elections. Pretty crazy right.
Thankfully, a switch was flipped and DeFi blue chips came roaring back in the weeks since the election.
Consequently, my overall portfolio value increased to $505,047, pushing my portfolio back over the crucial 500k level. Gains were largely contributed by the crypto portfolio, with the traditional portfolio providing a drag to portfolio value.
Trust your homework
As earlier mentioned, I had at one point in the past month round tripped my crypto gains. This was a severe test on my investment thesis on the DeFi ecosystem.
Was I wrong in my investment thesis? Or is this an investment opportunity?
Back in traditional markets, I had always faced situations where massive drawdowns on my portfolio occurs. The Covid selloff in March was case in point.
In such a situation, my experience has always been to trust your homework and ride it out. If you have money to allocate, consider doubling down.
This strategy has paid off time and again. So this is what I did with my crypto and the results show for itself.
As usual, this is not a call to buy or sell securities and its just sharing my own thought process for your information. Also, crypto is dangerous AF. Please do your own due diligence prior to investing.
Endowus CPF OA Portfolio
As you may know, I’ve started investing my CPF OA funds with Endowus. I’ve been sharing my portfolio performance for readers’ reference to evaluate product performance for themselves.
This month saw the launch of Endowus Fund Smart (EFS), giving me the flexibility to customise my portfolio. I had always wanted to invest a larger proportion in a Global fund and S&P500 than what was suggested by Endowus. EFS provided me with the ability to do just that.
As such, I started my Fund Smart portfolio with a $1k injection and set up a $500 monthly recurring top up. My Fund Smart portfolio simply invests in 70% of top ups in Infinity Global Stock Index Fund and 30% in Infinity US 500 Index Fund. The remaining $500 of my regular monthly top up still goes to the Endowus advised 100% equity portfolio per usual.
The effect of this is that I will slowly shift my portfolio towards US and Global equities with less emphasis on emerging market and dividend stocks.
If you want to learn more about Endowus, do check out my review (Cash/SRS/Fund Smart) portfolio details to be updated). Also, if you’re interested in opening an account, do feel free to sign up through my referral link.
Thoughts on the US Election
A reader asked me about my thoughts on the US Election’s impact on markets and I thought I’ll share it here.
Conventional wisdom states that liberal presidents tend to lead to higher taxes and more regulation on companies. Such features are definitely evident in Biden’s tax plan.
As such, does that mean we should expect markets to tank in the near future? Is the US market’s bullishness post election a trap?
Personally, I find this whole debate over Republican and Democrat presidents’ effect on stock markets a pointless exercise. You could easily find reasons to be bullish / bearish on both sides of the aisle.
If Donald Trump won, you can expect more deregulation and low taxes to stay, which is bullish for stocks. The unfortunate side effect is that US continues down this divisive nationalistic path that can add more volatility in the markets, which I feel is bad for the global economy overall.
If Joe Biden won, you can expect higher corporate taxes, more social safety nets adding costs to businesses, which is bad for stocks. On the flip side, you can see more stimulus to the economy as Democrats are able push through their massive stimulus plan. There is also the anecdotal evidence that the stock market performs better under Democratic presidents.
Given this state of affairs, can you conclusively say its bullish or bearish either way? To me, the US election was not really a factor for long term investing, just an event that will lead to short term volatility.
That said, personally, I’m happy to see the election of Joe Biden as it will hopefully lead to a more principled approach to foreign policy, thereby promoting more global cooperation instead of confrontation. This should lead to better US-China relations and global economy in general.
As usual, to the 5 people who liked my Facebook page respectively since my last portfolio update, welcome. Feel free to reach out via email or Facebook. I’m usually quite responsive as readers can attest to. Hope that you have found my blog content useful 🙂
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