October 2020 Update

What a month it has been! Work seems to be never ending and am feeling a little burnt out without being able to properly have a break. Life nowadays has been quite routine, waking up, head to work, head home for dinner. Weekends would be where I can recharge by spending time with loved ones and just enjoy the freedom. Looking forward to the block leave in the coming weeks where I have a staycation coming up! Too bad the current situation doesnt allow us to travel but a staycation isnt too bad either. 

The market has gone wild perhaps due to the news of Trump being kicked out of the white house and the effectiveness of the covid vaccine. S&P 500 has surpassed its all time high pre covid and Singapore market is also beginning to wake up from its slumber. People were betting that market would rise if Trump were to continue in office and markets to tank if Biden takes over. But reality says otherwise. No one can accurately predict where the market is headed to and this short span of few months shows us that it pays off to stay in the market and ride the volatility. If one were to pull out all his money before the US election and decide to go back in after the elections, he would be beating himself up now. 

Yield Portfolio


Added: OCBC, Ireit Global, UOB & Fraser Cpt Trust during the dip in the past month. Continue to add into the local banks as they are trading at a historical low, too bad Mr. Market favoured DBS and it never dipped low enough for me to accumulate. 

Been looking at reits that delivers a  >5% yield. Ireit caught my eye for its high interest coverage ratio and based on the dpu >6% yield seems manageable. Also, been wanting to add FCT after visiting its properties and its mall are always crowded. The chance came when reits sort of crashed and with the entry price a >5% yield is nice while I wait for retail to recover.

Index Portfolio

Monthly investment into this portfolio continues despite the market noise. For this month, I've allocated my money into bonds as the % towards to equities is slightly high compared to my desired allocation. Desired allocation: CSPX (42.5%), IWDA (42.5%), EIMI (5%), Bond (10%). 

Networth continue to go up due to the unexpected surge in stock market. If this continues, 200k might be possible within the end of this year! Have been hearing that SG is one of the worst performing stock market, which isnt false. If you put all your money in the STI ETF exactly 11 years ago, your capital would not have grown (with the exception of dividend received). Compared to the US economy, the same amount would have grown 3x! That being said, I think there are still gems in the Singapore economy and is definitely a good place to farm dividends (dividends are not taxed). The plan is to buy into solid companies that have the capability to pay out sustainable dividends during times of distress and hold them long term. Index investing to continue capture the growth of the entire world stock market economy. 

Cheers,
KO

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