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Portfolio Spring Cleaning

The Chinese New Year is just around the corner.


I believe most of us are likely busy with the CNY preparation, not forgetting the usual practice of spring cleaning.


As such, I decided to do some spring cleaning of my own portfolio as well.


Here's my current portfolio allocation.

Cash

I don't have a habit of holding on to so much cash. The reason I have that much now is that I haven't got time to deploy my SRS contribution made last month.


Given that SRS stock selections are mainly restricted to the local market and I would prefer a more international exposure, I had decided to channel the money into unit trusts instead.


I had set up RSP to diversify my resources across two robo-advisors platforms as well as a few funds that I have selected. I will probably come back and review the respective fund performances down the road.


Crypto

I started a small position to learn more about the crypto space. With the astronomical growth in recent years, the small position ballooned to a much bigger position.


I'm currently using crypto.com and recently, there was news of the platform being hacked.


I was grateful that my account wasn't affected. The only thing I saw when I logged in was a sea of red...


Will probably take this chance to dollar cost average down on some of the coins too. 😍


Unit Trusts

My biggest loser (in terms of %) comes from Nikko AM ARK. The fund is down about 38% based on my entry price.


Since there are some overlaps in terms of their top holdings and my US portfolio, I won't be adding more money to this fund.


I'm quite keen to see how the respective fund managers will perform during this exceptionally volatile period. I believe it's turbulent times like this we get to filter the cream from the crop.


SG Portfolio

To be honest, I wasn't expecting the SG portfolio to be holding up so well given that the general market had been in the doldrums.


My biggest contributors came from the local banks. I own only two of the three local banks. So far, they had been performing beyond my expectations. Given that they had been moving in the opposite direction of the general market, I'm not surprised if the banking counters experience some profit-taking over the next couple of days before CNY comes.


(Who boo their own portfolio?)


US Portfolio

The past weeks really opened my eyes.


I understood that huge volatility was the price I had to pay for entering into the US market, especially since my portfolio is concentrated on the technology sector.


Week after week, I just see the portfolio value dipping lower and lower.


If I didn't have the mental fortitude and past experiences of market crashes, I believe I would have freaked out by now.


I did some reflections and will be trimming down my holdings on some of the losing positions. Not mainly because they are losing money, but the thesis on some of the companies has been changed.


I will probably do another post on companies I will be selling and lessons learned from these failed investments after my spring cleaning.


Thereafter, I will really have to sit down and see how I should further reduce my current 63 positions to 50. It's not going to be easy, so I will probably take a little more time to do that.


I will also continue to pump more cash into this pie since I'll be more "active" on the options strategy now.


From June 2021 till date, I have collected about USD 2,800 of premiums. Pretty decent in my opinion since I don't have a large US portfolio. My main strategy was selling cash-secured puts. I will likely change to a covered call since the market is in the doldrums right now.


Conclusion

Our investing styles grow and evolve over time. Some parts of the portfolio may perform better than expected, while others may surprise us (both good and bad ways).


That's why it is important to have a diversified portfolio. Though in my case, I may have over-diversify in my US portfolio.😅


Regardless, I don't think investing in the market is a buy-and-forget income strategy. It still requires some level of effort and competencies to ensure that your portfolio is well balanced and doing well.


It may not be that easy at the start, but I can assure you that it will get easier over time. And the best part of all, the fruits of the labour can be very very sweet.😊


If you haven't already started on your investment journey, probably this year is one of the best times to start since the market is on discount!

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