March 2019 Portfolio Allocation Update

Stock Allocation

No change for the month of March as the stock market continues to stay buoyant.

Inverted yield curves are backed in limelight and the market did a selloff briefly. But it seems that investor are already numb to the news and the market recovers quickly. An inverted yield curve does not mean that a recession is imminent. The duration of curve being inverted is also one of the factors for consideration. Even if a recession is coming, there is an average lead time of around 300 days based on past history so it may not be so soon. It could be next week or next year. In gist, I think predicting a recession is as hard as guessing 4D numbers so I will continue to stay vested.

Portfolio Allocation

  Change Log
  • Added April issue of SSBs
Since the cash payout from M1 were not utilized, I deployed them into SSBs while waiting for chance to enter the market. As the Fed suggests that there would be no rate hikes this year, the interest rate will probably continue to remain at the current levels. Therefore, it is better to put as much money as possible earlier into SSBs if there is no use for them.

Sector Allocation

REIT continues to outperform over other sectors and is now almost 30% of  my portfolio. The current price for banks are rather muted as investors foresee lesser rate hikes this year which could impact their earnings. The global economy slow down is also weighing down the price for consumer stocks. I will be watching the banks and consumer sectors as potential sectors to enter.

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