Satellite Portfolio Update

 


Holdings

  • SPDR Barclays Capital High Yield Bnd, JNK
  • iShares Preferred and Income Securities, PFF
  • Vanguard Health Care, VHT
  • Invesco QQQ, QQQ
  • iShares China Large-Cap, FXI

The sell-offs in the US markets continue through this week. The week started with multiple negative news such the possibility of Europe going into lockdown again and the money laundering activities by banks. The US markets rally have also probably overextended after reaching all-time highs, so a correction was inevitable.

But what is interesting is that despite the Singapore market been falling since the pandemic started, it followed the US market in this sell-off.  The Singapore market did not follow the US market when it rallied, but when the US market sell-offs, it followed. At this rate, reaching the March lows may not be too far-fetched for the STI.

The sell-offs have also resulted in the strengthening of the US Dollar which caused the dropped in gold price. Naturally, my Satellite portfolio is not doing well, but the unrealized lost currently is still negligible since the portfolio size is small. I do not have the intention to sell and is still looking to hold with a long-term outlook.

I have also added a new constituent to my Satellite portfolio which is iShares China Large-Cap ETF. This is supposed to be the replacement for one of my ex-holdings, Xtrackers FTSE China 50, which was delisted from SGX recently. Sadly after I bought, the news of China Evergrande facing liquidity crisis hits. The fall of China Evergrande will have widespread impact to the financial system in China and may have a domino effect across the globe.

I think I will start doing some accumulation for my Core portfolio as every pull-back is an opportunity to add. Nobody is certain how low this time it will go, so never go all in at once. I will pace my purchases for the long winter ahead. If we made it through the March winter, we will made it through this winter again.


InvestingNote Profile: @SingularityTruth
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