The last time I hit the milestone of injecting $100,000 into the stock market was sometime in March.
Fast forward 5 months, my capital invested has exceeded $150,000 in August:
All together, I am still sitting on a few thousand dollars of paper loss. Since I have a long investment horizon, I’m not particularly fixated on my current paper loss (only 3% of total portfolio cost). Despite the broader stock market rebound, 65% of my stocks are still down from their pre-March highs.
A couple of months ago, one of my endowment policies became due and I found myself with an instant amount of cash to deploy in the stock market. I deployed a certain portion of it and still have a significant amount left in cash. Coupled with my monthly budget for investing from my income, I’ve invested over $50,000 in 5 months.
Prior to discovering the benefits of investing in the stock market, I put my extra cash with insurance companies by buying endowment policies. Endowment policies were suitable for me then as I was looking at growing my savings in some low-risk instruments.
However, I realised that I could tolerate more risks, and the 3-4% projected yield at the maturity of these policies no longer satisfied my risk appetite. Why take a 3-4% yield when I could have 5-6% yield on dividends by investing in Reits, for example? I still have 3 more endowment plans, with one maturing next year and the last maturing in 6 year’s time.
My stock portfolio comprises of 60% Singapore stocks, 24% US stocks, and the remaining 16% China/HK and Malaysia stocks.
Top 3 worst performers: (1) Eagle Hospitality Trust, (2) SATS, (3) Comfort Delgro.
Top 3 best performers: (1) Mapletree Industrial Trust, (2) Digital Realty Trust (USA), (3) Frasers Centrepoint Trust.
All you need for a lifetime of successful investing is a few big winners, and the pluses from those will overwhelm the minuses from the stocks that don’t work out.Peter Lynch
Dividends collected to date for year 2020: $3806.50 (Average $475.81 per month)
I’m basically a value investor in search of stable dividends but I’m beginning to look at owning some growth stocks. During this time of the pandemic, Singapore shares seem to be underperforming as compared to US and China stocks. Just look at how tech stocks have rallied since March. I kick myself now for not getting my hands on such stocks as Apple, Amazon and Alibaba in March when I had the opportunity and money to deploy. Anyway, I see growth investment mixed in with my dividend-paying stocks as a good way to create a more diversified portfolio
I began investing with MoneyOwl in July 2019. The investment portfolio consists of Dimensional Global Core Equity Fund and Dimensional Emerging Markets Large-Cap Fund. Of the 5 portfolios offered, I’ve chosen the most risky portfolio where the asset allocation is 100% global equities and 0% bonds. My time-weighted return for this portfolio is a decent 5.2%.
I invested with Syfe primarily because of its one of a kind 100% Reits portfolio that tracks the SGX’s iEdge S-Reit 20 Index. The top 5 Reits (Ascendas, MLT, MIT, MCT & Keppl DC) represent slightly more than 50% of the entire portfolio of 20 Reits.
I like it that I can just regularly contribute to this portfolio and reap the benefit of dollar cost averaging. I don’t have to think much about transaction fees, rights subscription and reinvesting my dividends … I just let Syfe take care of all these for me. My all-Reit portfolio’s time-weighted return is -2.69%. In 15 years, with monthly deposits of $400, this portfolio might grow to $125,200.
I also invested in Syfe’s Global Automated Risk-Management Investments (ARI) portfolio. Through this instrument, I am investing in a blend of equity, bonds and commodity ETFs. Syfe’s proprietary ARI engine automatically manages my portfolio to maintain my chosen risk level (22.3 out of 25 max). This portfolio’s time-weighted return is -14.22%. It needs to do better. In 15 years, with monthly deposits of $300, I can expect the portfolio to grow to $217,400 (most likely scenario).
Comparing both the 100% Reits portfolio with the Global ARI portfolio, the latter provides a greater growth trajectory, owing I suppose, to the use of the SPDR S&P 500 ETF (24.32%) and the Consumer Staples Select Sector SPDR Fund (21.21%).
If I were to invest 2k in the Global ARI portfolio every month for the next 15 years, which is very doable, I would have become a millionaire with a portfolio that amounts to 1.3 million. 3k per month for 15 years or 1.5k per month for 20 years, I would have grown the portfolio to 2 million.
Very interesting scenarios of the future indeed!
However, I do take such rosy predictions with a huge pinch of salt. Nobody knows what the future is like 15 years from now. There might just be another more severe pandemic or a world war that will utterly destroy the world financial market as we know it today, who knows?
I’m considering switching one of these portfolios to Syfe’s Equity100 portfolio because it uses the Invesco QQQ ETF to achieve a growth and large-cap tilt. At least 43% of the Equity100 portfolio will consist of the QQQ ETF. The top 5 ETFs form about 90% of the Equity100 portfolio’s composition [QQQ, Consumer Staples Select Sector SPDR Fund (XLP), iShares Core S&P 500 UCITS (CSPX), iShares MSCI EAFE (EFA), and Health Care Select Sector SPDR Fund (XLV)]. I need time and wisdom to evaluate this option.
The stock market has rallied significantly since the beginning of the pandemic. In fact, the S&P 500, in recent weeks, has closed at new heights since the coronavirus pandemic was declared in the USA in February. It is truly one of the most amazing recoveries on record. Nevertheless I’m mindful of the great divide between Wall Street and Main Street, and the fact that a great deal of optimism has been priced into the market at this moment.
In July, I got a 5% increase in my salary. Peanuts … but still I should be thankful especially when many have lost their jobs, or taken a pay freeze or substantial pay cut.
That 5% pay rise comes in handy when it comes to Kiddo #1’s education i.e. IP-school fees, and also tuition costs. The teaching pace in Kiddo #1’s school is really accelerated, and Kiddo #1 is falling behind in two subjects, hence the need for private tuition. I’m paying about $200 per week for private tuition … so expensive! But I’m willing to help Kiddo #1 “survive” in this school that for over 100 years have taken in the cream of the crop of all Primary 6 pupils. Yeah, whatever the cost.
If only I could put this $800 per month into the stock market … oh well.
The most valuable investment we can make is in our children’s education. When we make education a priority, we give our children opportunity. Opportunity to learn at higher levels than their parents were able to learn; to earn at higher levels than we were able to earn.Martin O’Malley, Former Governor of Maryland and Mayor of Baltimore
Disclaimer: I am only an amateur investor and nothing you read here on my blog constitutes financial advice. I write here to detail my investments, strategies, and analyses. Feel free to read at your own risk. Should you need financial advice, consult a licensed financial advisor.