Update on Covid-19 (May & June)

The covid-19 update. Since the lows of March the market has shot up all the way to June. Then on 11 June it came crashing down. Current STI is 2650+ while the recent high was 2800. Traders who are good with their TA should have made quite a tidy profit. 

Times like these I start to doubt my strategy, esp when friends around me shared on the great percentage gains they had on some holdings. However, without taking into account savings rate, capital injection, lifestyle sacrifices, risk tolerance level, and percentage of portfolio that particular stock weighs on their portfolio it serves little purpose other than a highlight. One could take a look or ignore it stick to own plans. 

I have decided that my current strategy would work well by covering both sides and is suited to my savings rates, income level as well as risk tolerance and time i am willing to commit to investment. I am not going to get a second job... that defeats the purpose. 

Portfolio A- dividend portfolio 

• This portfolio invests in mainly income producing assets. 
• It attempts to provide long term stable cash flows mainly via SREITS, but open to other opportunities
• Target >6% yield, or CPF+3.5% 

For yield, the low interest world wide caused by UQE will definite create asset inflation- its a matter of time once things stablised and peoples' incomes get back to normalcy. This is a once-in-a-lifetime opportunity like 2008 and I will slowly add quality yield counter into the mix, bearing in mind weightage risk, sector concentration risk and geographical risk. This portfolio forms the bed rock of my investment. 

Portfolio B- long term growth portfolio 

• This portfolio invests in a diversified holdings via ETFs
• Attempt to capture the growth of secular trend such as 5G and AI
• Aims for index + 5% or 12% annual 

So far I have taken the recent corrections to trim my holdings improve average costs and establish smallish positions in various counters. I have long term view of semicon and fintech and feel that these will give long term stable returns for next 5-7 years as demand grows. The holdings changes once i feel the potential growth has topped out or a new trend may take over. 

Current -3.6% despite a yoy drop of 20% on STI index and -5.5% on the VTI Vanguard Total Stock Market ETF, a benchmark for myself.