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
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.
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