Updated: Jul 3, 2020
2 weeks ago on The Cynical Investor…
Clearly, it took a while, but the effect of the C-19 hit the US market in full swing this week. In a matter of a few days, the S&P500, Dow Jones Index and NASDAQ dropped significantly pushing the market into a panic. So it seems that I spoke too soon about its effects...
Meanwhile Donald Trump continued to try and pump the stock markets and encouraged everyone to “buy the dip”. Though that wouldn’t be such a good idea if the market drops down even further and buying up everything now could be equivalent to catching a falling knife. Regardless of which side of the fence you are on, the common atmosphere on both sides is one of hysteria. The media and the analysts are encouraging everyone to either “BUY BUY BUY” or “SELL SELL SELL”. My cynical point of view finds that quite odd given that jumping into such a volatile market would actually be the best way to lose money.
On Friday alone, the S&P500 Index had a 4% range between the prices it was fluctuating and if you had bought or sold without thinking, there is a high chance you would lose money.
So, instead of jumping in and buying and selling, I am going wait. Wait and see how this develops. If the market drops even further, then great, I will be able to buy at even lower prices. If the market recovers, then that’s great too. I will get an opportunity to reassess what I am holding. Therefore, I maintain that listening to any of the loud voices who encourage a strong buy or sell is a bad idea. I wrote about my strategy for navigating through this period and I am currently sticking to it.
So, coming to my portfolio for this week, obviously it’s been a blood bath. I have gone from $4.5k in profits to -$146 in the red. And this is actually a milder version of the actual effects to my portfolio. Over the week, I did some short-term trading which earned me some profits which dampened the blow, but overall I am still at a loss.
P/L per holding
The biggest hit holding are the Technology companies which saw a lot of their value just disappear. The Singapore market is still holding up even despite seeing some drops. I sold out of my position in Innovative Industrial Properties. I was hoping for the stock to go up because they just had their earnings report this week and they beat all of their earnings estimates. However, that rise never came, so I took my profits, but I will be looking to get back in again if they get back to $70 or so.
For dividends, Parkwaylife REIT paid out their dividends this week so this makes February my highest dividend month so far. While I have been collecting dividends for only a few months, I think that I am making progress and aiming to increase my average monthly dividends over time.
So, this was a short update. As I mentioned above, there is not much opportunity for participation in the market right now. All I can do is wait, save up more cash and stick to my strategy.
Disclaimer: This post should not be interpreted as investment advice as I am not a professional financial consultant. The objective of this blog is to share my experiences with others and receive feedback. I will provide links to my information sources to the best of my abilities, but the reader is responsible for their own due diligence