Cash / SRS / Crypto Portfolio
Performance Indicators / Dividends (TradFi Portfolio only)
- YTD Time weighted return: 2.40%
- XIRR since portfolio inception in 2013: 17.23%
- Dividends collected YTD: SGD 1,379.71
Note: I don’t provide details or returns metrics on my crypto portfolio publicly.
Massive Dump
February was highly volatile month for crypto and traditional markets. We saw markets coast to all time highs before correcting downwards. Crypto also saw a 20-30% correction from all time highs in the past 2 weeks.
That said, my overall portfolio value still did well and grew to $1,759,042. Gains were largely contributed by the crypto portfolio, with the traditional portfolio having a small drag. At all time highs, my portfolio value surged past $2M, but the recent selloff postponed my membership to the multimillionaire club.
Start of a correction?
In my 2020 Performance Scorecard, I predicted a pullback in the US market / high PE stocks in Q1. I guess we’re seeing the start of it now. It was triggered by the rise in US treasury yields on fears of inflation.
Interesting reason for the pullback though, considering that these fears have been present since last year. It was part of why the flight to Bitcoin last year was such a big narrative last year.
Will be interesting to see how this plays out.
Welcome to crypto volatility
I’ve recently gotten a lot more enquiries about crypto from readers and I get the sense that more people are being “red pilled” into crypto. Welcome to the wild west, fellow investors.
The recent selloff in traditional markets seems to have seeped into crypto markets too. Although I must say, the crypto markets in early Feb had exhibited a level of frothiness I’ve not felt since the end of DeFi summer last year.
Consequently, I also got the sense that people are concerned / panicking about the 20-30% selloff in crypto. My message to these investors is – get used to it.
Volatility in crypto is way higher than what you expect in traditional markets. I’ve heard commentators of traditional markets roughly defining that:
- A correction refers to a 10% dip
- A bear market refers to a 20% dip
- A crash refers to a 30% dip or more
Well in crypto, these definitions are amplified. A 20-30% dump is pretty common in the crypto world. I’ve personally seen my crypto portfolio double before being cut back down to cost over a period of about 2 months last year.
What got me through those dog periods was the belief in my investment thesis and homework. It also helped that I was still earning income on my crypto in the process.
Crypto never goes up in a straight line, there will be extreme periods of euphoria and depression. I think this is due to the prevalence of margin trading and easy access to debt in crypto, thereby creating boom and bust cycles more rapidly than traditional finance. It is also why selloffs are important to deleverage the crypto economy.
You’ve now experienced your first dump, wear that badge with pride. Consider adding more if you feel that you don’t have enough.
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. Nothing much special this month, just the recurring monthly top up.
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. We will both receive $20 off access fees per referral.
Reader Appreciation
As usual, to the 14 and 15 people who liked my Facebook page and subscribed to my blog 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 🙂
Past updates:
January 2021
2020 Performance Scorecard
2019 Performance Scorecard
2018 Performance Scorecard
2017 Performance Scorecard
Happy Hunting,
KK
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