What a start for the first month of 2022. While I consciously made the decision not to sell my stake in any of the existing holdings the drop still does not make me feel any better. Due to the portfolio tilt to tech and cryptos there is a strong co-relation to the decline.
- Nasdaq100 (QQQ): -12.45%
- S&P500 (SPY): - 8.32%
- Harlequin Portfolio: - 11.71%
Lost to SPY by 3.39%. Damn and its only first month of the year 2022.
Funny thing is that I was close to considering taking some profits off (but missing absolute peak) for APPL at around 175-180, TSLA at around 1100-1150, SMH at around 300-310. Maybe it is greed, I feared missing out. But then again part of me thought about it and believed that the macro fundamental trends should be aligned to these counters. Why sell when the goal is to accumulate more? if I sold, when would be a good price / time to re-enter?
I chose to take no action, contrary how I managed 2020 March and 2020 Oct events (sold >50% and re-position) I choose to hunker down and just accumulate reits (neglected for some time) while they are cheaper. The goal this year is to increase my dividend portfolio to 100k, and to reach 350k in total size. Seems tough now due to the drop, but $TSLA and $BTC will always surprise people.
Fed tightening always cause some form of taper tantrum and this may be an opportunity to pick up some really good companies at decent prices. Not sure about US market but the last time that happened some reits got sold down really bad only to rise above in both DPU and share price just couple years later.
My only worry is how is US gonna tame inflation. and if it fails to do so, what is the backup plan? BTC? Property? Checked. First month of inaction: checked
as they say, in investing, if you dont know what to do, dont do anything. if it aint broke, dont fix it.
