Portfolio and Blog Update – June 2022 [Recession is coming?]
By Derek  •  July 8, 2022
More negative news amid the on-going war in Ukraine - Crypto prices crash, higher interest rates, inflation and the threat of a recession is not far off. My portfolio has taken a beating and dividends are the only birth spark - hooray to Dividend Whores! I can empathize with those who lost badly in Crypto as my holdings in Celsius which is about 30% of my entire Crypto portfolio is frozen.  I still consider myself fortunate as I have put into action what I have learnt over the course of my investing journey especially during the sub-prime crisis, hence no lost of sleep although  I did wake up in the middle of a night to transfer all my Crypto to my hardware wallet [no thanks to Celsius and all the FUD]. It is still sometimes difficult to keep my itchy hands in check and blogging about it helps greatly. I will be reviewing my strategies that I have laid out for the year and make some tweaks according. What's especially important is to keep going as a Chinese saying goes 留得青山在,不怕没柴烧 (when there is life, there is hope). My Lazy Man Portfolio The biggest intangible change is that I have move from Microsoft Excel to Google Sheets because it is easier to share it with my wife who will know what I have and can take the appropriate action on my behalf. I have also decided to lump all stocks together so that at one glance, I can better see the portion of each holdings. My Crypto position has dropped from almost 20% in March to just 6% in June. That's just in a span of 3 months  - that's how volatile Crypto is. Robo Investments are also down. I will pen some of my interesting observations down in the post. I am starting to think that DCA a basket of stocks e.g. OCBC Blue Chip Investment Plan is a better option because I will received dividends from the stocks in my bank account whereas dividends from Robo are reinvested. Naturally in the long run, reinvesting the dividends will have a higher compound rate of returns. Nevertheless, I am keen to explore the BCIP for my son's portfolio. Since CPF is a one time lumpsum investment, the allocation will only get smaller. I have increased my cash position to continue to buy stocks that has a track record of going through a recession and another tiny amount for high risk derivatives e.g. Crypto.
My Stock Portfolio Bought UOB and Astrea 7 bonds. Banks continue to be my largest holdings and the cornerstone of my entire portfolio. As boring as it may sound, banks have a track record of riding through recessions and I will continue to buy a bank stock every quarter. I am also keenly monitoring the bond market - if SSB reach 5%, I may also park some money there.
My Crypto Portfolio I purchased a hardware wallet but was still not fast enough to withdraw my crypto from Celsius. While there may still be a chance, I decided that that I have made a total loss. The only saving grace is that I parked my Crypto in different exchanges but unfortunately the crypto in Celsius is one of my largest holdings. For those who are undecided on purchasing a hardware wallet a software wallet like MetaMask is an alternative.
Not Your Keys, Not Your Coins
My Crypto portfolio is currently in the red at -52.22%. My strategy going forward is to purchase SGD 25 of BTC and SGD 25 of ETH each week. That works out to 25 weeks x SGD 50 = SGD 1,250 till the end of the year. I will be purchasing from Gemini and will move it to my hardware wallet once it reach SGD 200 worth. I have also tweaked the way of tracking my Crypto returns. Instead of tracking each transactions, I will dedicate a bank account just for Crypto and track my returns base on current Crypto holdings plus the money in that bank account.
My Robo Portfolio My Sweetheart and I (Endowus) Start Date: Jun 2020 Allocation: 60% Equities, 40% Bonds Gain / Loss: -6.7% There has been much discussion comparing the various Robo. I have both the Endowus and MoneyOwl (refer to My Little One portfolio below) for an almost apple to apple comparison ant the performance are almost similar. I believe once the market recover, the returns will also be similar plus minus a few percentage points. I doubt you will see any Robo outperform the other by double digits percentage points. It will be interesting to see how many Robo will remain after this. If safety is important go for Robo under the banks e.g. DBS, OCBC not because I own their stocks but because banks are heavily regulated and is unlikely to just disappear with the money. Let's Beat CPF (Endowus) Start Date: Jun 2020 Allocation: 80% Equities, 20% Bonds Investment Amount: $5,000 lump sum from CPF-OA Gain/Loss: +14.27% Interestingly, my lump-sum investment is still in the green. I wonder how long this will last though.
My Little One Portfolio I also bought Astrea 7 bonds for his portfolio.  Since my son has the OCBC mighty saver account, I am also exploring if OCBC BCIP can be linked to that account to create a third investment stream. My Little One Portfolio (MoneyOwl) Start Date: May 2020 Allocation: 60% Equities, 40% Fixed Income Gain/Loss: -5% Returns have also dropped but with 17 more years to go, I am pretty optimistic in the long term.
A look back on last quarter Invest Dec '21: Only look to add into existing portfolio only Mar '22: On track. Added UOB in Jan Jun '22: On track. Added UOB in Apr and Astrea 7 in May Dec '21: Load stocks with > 5% forward dividend - since banks has a positive correlation with Crypto, if forward dividend is almost similar, prioritise REITS over Banks. Mar '22: I will change to prioritise Banks over REITS because REITS have either been consolidating or issuing more rights. Jun '22: No change Mar '22: Instead of buying Metaverse Stock or ETF, I have purchased Crypto directly related to the Metaverse e.g. MANA, SAND and YGG. Jun '22: Stop buying Alt coins. Only buy SGD 25 of BTC and SGD 25 of ETH every week until the end of the year. Dec '21: Refrain from buying more China Tech as there are no dividends Mar '22: On track. Positive news from the regulatory front and I hope the worse is over. Jun '22: On track. More positive news but recovery is still slow due to worsening global factors. Dec '21: Portfolio rule of no more than 20% for a single stock still apply - Stocks and Crypto only – exclude Robo and CPF. Mar '22: Currently Crypto makes up 22.18% and I am trying to resist adding more. I will limit myself to USD1,000 until my next portfolio review in Jul 2022. Jun '22: Portfolio is now just 5% of my entire portfolio. I have revised my allocation to no more than 10% of my entire portfolio. Dec '21: Dividend Stocks to make up at leas 50% of the portfolio – I am looking at Cash dividends only, hence Crypto Farming/Yielding is excluded. Mar '22: On track. Banks, REITS and Trust currently make up 66.81%. Jun '22: On track. Due to the crypto crash, the proportion of dividend stocks is even higher. Personal Finance Mar '22: Convincing my wife to invest rather than in Insurance Savings Jun '22: Fortunately I failed else she will be looking at me for her loses. I will convince her to buy SSB instead. First step, open a CDP account under her own name. Blog Some problems aggregating videos. I will try to fix this this quarter. Learning Google Digital Garage – Fundamentals of Digital Garage Still on hold. Crypto Still listening to Coin Bureau YouTube channel.
Photo by D koi on Unsplash
Read the full article
By Derek
Derek is an investor who follows Peter Lynch style of investing. He prefers to use simple and straight forward information for stock analysis. He started with the intention to bring together all bloggers and professionals who are interested or already in the area of Finance and Investing, and to create a community where everyone is free to write and to share their articles, experience and opinions.

Your email address will not be published.


Your Email Address will not be published


2 responses to “Portfolio and Blog Update – June 2022 [Recession is coming?]”

  1. abc says:

    OneDrive has free 5GB. Hence, you can still share Excel with wife. Browser-based and mobile phone app Excel are both free (less features than full Excel but good enough for normal use).

    • Derek says:

      Hi abc,

      Thanks for dropping by. I am actually a paid subscriber of both MS Office and OneDrive. However, my wife is only comfortable with Google Sheets. She refuse to have MS Excel on her iphone or Macbook. ;)

Leave a Reply

Your email address will not be published.

Read More Articles
More from thefinance
%d bloggers like this: