With 2014 behind us, let’s review the annual performance of various equity markets and indices to see where the opportunities lie in 2015!
Looking at this comparative table (1-year performance ranking) from my Synapse HFT Stock Scanner, the Asian markets like China and India have performed exceptionally well, and are very likely to be strong performers for next year as well. Another Asian market to look out for is the Indonesian stock market (not featured here).
Commodities have fallen the most (mainly due to suppressed oil prices), which means that it might be a good time to pick them up during the low of their cycle. This means that we might also be keeping an eye on SGX commodity and oil-related counters, such as Olam, First Resources, Keppel, SembMar, etc
On the forex front, the USD is still going strong, while currencies that are tied to commodities/oil have taken a beating, such as the CAD, RUB, MYR, IDR, AUD, NZD, etc. I also currently have short positions on the EUR/USD & GBP/USD; as well as long positions on the USD/JPY.
Looking at the STI chart, it seems like the Singapore stock market is still trapped in a giant range, considering we have not surpassed the 2013 high.
This is very dangerous for those with the bulk of their wealth purely in stocks/REITs, especially with a pure buy-and-hold strategy, as the start of a prolonged downtrend will leave them holding losses in “under-valued stocks” throughout 2015.
My Portfolio Monthly & Annual Results
With regards to my portfolio, this month there was a good dividend payout from AIMS AIMP, which I will be using to cover my upcoming holiday. 😀
I added some businesses to my portfolio for more diversified passive income, and will be looking to add some properties as well if prices correct this year.
For equities, I would like to wait for a 15-25% correction before the yields start to become attractive again, but if there is no significant correction, I will focus on high-yield stocks and REITs.
As commodities head lower, I will also gradually add more to my commodity positions.
This month was a pretty quiet month, so there wasn’t much trading. Here are the full results:
Trading Portfolio monthly returns for December 2014:
- Forex trading: 0.5% gain for the month (Annualised ROI: 35% /year)
- CFDs trading: (1.8%) loss for the month (Annualised ROI: 120% /year)
- Funds/Trusts: 1.8% gain for the month (Annualised ROI: 17% /year)
Investment Portfolio projected average dividend yields: 5.1% ROI/year
(Based on current dividends received on a rolling 12-mth basis)
Combined Portfolio projected average yield: 22.7% ROI/year
(Based on historical returns on a rolling 12-mth basis)
Revealed: Full Portfolio Current Holdings!
Here are my current holdings as at the end of December 2014:
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Looking back, it is really amazing how I managed to build this hands-free portfolio (starting with $3000 and zero finance knowledge) within 8 years simply by changing my mindset and learning the strategies to make my money work for me, instead of exchanging my time for money.
I hope that through my blog sharing, I can help more people achieve early financial freedom, and live the lifestyle they deserve! 😀
Next week, I will be kick-starting my 2015 with a holiday to Boracay, and when I return, I will be sharing my shopping list of blue-chips and REITs which I use to build my hands-free portfolio.
Stay tuned! 😀
P.S. The very first workshop of 2015 is open for registration, limited to the first lucky 50 participants. Please register only if you will be turning up, as slots are very limited. Thanks!