Monthly Portfolio Update for June 2016 – Defensive Portfolio Was Perfect for Brexit

I just realised that I forgot to post my portfolio updates last month for May – my apologies!

For this June update, I have increased my time horizon for my portfolio from 5 years to 10 years, to better capture the longer market cycles.

monthly portfolio updates June 2016 2

This is a very simple (and powerful) portfolio which everyone can create for themselves, and it does not require any superb stock-picking skills or Warren Buffet level of analysis. All it requires is an understanding of market cycles, and how to buy when the market is low.

Last month, we saw Brexit happen, which caused many markets to crash, and although some have recovered, there is still much uncertainty.

This is why my portfolio is currently very defensive, so that I will not be affected by such events, and more importantly, I will be poised to take advantage of low prices once the dust has settled.

REVEALED: FULL PORTFOLIO HOLDINGS!

Here are my current holdings as at the end of June 2016:
(Click on any of these buttons below to unlock; for mobile device users, please click twice)

For more insights into my portfolio construction, and how you can create your own customized portfolio, check out the stock screener software which I use to save time in building my portfolio: http://synapsetrading.com/the-synapse-hft-stock-scanner/

Good luck! 😀

Monthly Portfolio Update for April 2016 – Ideal Portfolio Allocation Plan

Over the long weekend, I have taken the chance to come up with a target allocation for my investment portfolio, so that I can use it as a roadmap for my subsequent rebalancing, either monthly or quarterly.

This is very much a lazy portfolio approach, by diversifying across different asset classes to ensure steady returns in both up and down markets. This is especially important since the stock market looks pretty precarious, and holding too much in stocks will be very painful when it crashes.

monthly portfolio updates April 2016 1

Currently, the allocation to cash is quite large, but this is ideal at this late stage in the market. When the market has corrected significantly, the allocation to cash can be reduced to 15-25%, with the additional resources allocated to buying up more stocks and REITs.

About 10% is the target allocation for Commodities (mainly physical Gold kilo bars), which is to act as a hedge should the stock market crash. The rest of the cash is allocated to various products that provide yield returns for the capital and overall portfolio.

REVEALED: FULL PORTFOLIO HOLDINGS!

Here are my current holdings as at the end of April 2016:
(Click on any of these buttons below to unlock; for mobile device users, please click twice)

For more insights into my portfolio construction, and how you can create your own customized portfolio, drop by for a free workshop on the basics of trading & investing.
Check availability: http://synapsetrading.com/events/training-workshops/

 

WILL THERE BE A NEW REIT ETF ON SGX SOON?

Last year, SGX created a REIT Index (SGX S-REIT 20 Index), and I hope that this year, there will be a new REIT ETF, so that I can easily add all these REITs without have to buy each and every one of them individually.

Factsheet: http://f.edm.sgx.com/i/32/2095833887/V3MyGateway_02May16.pdf

Fingers crossed! 😀

SGX REIT index 030516 2 SGX REIT index 030516

Monthly Portfolio Update for March 2016 – Major Changes!

For the later half of March, I was down with the flu, so I did not have much time or energy to update my blog, but I did have a lot of time to revamp my investment portfolio.

After much consideration, I have decided to gear my portfolio towards more yield-based passive income, so as to better complement my monthly income from trading. And should I choose to retire from trading (perhaps a mid-life crisis upon turning 30 😀 ), I will have the option to live off the passive income from my portfolio, and pursue other endeavours.

monthly portfolio updates (March 2016)

One of the major changes was to remove all assets that do not give yield, such as Gold, Commodities, Oil, as well as bonds that offer too little yield. I figured that these assets derive their gains purely from capital gains, so I will continue to profit from their price movements, but via CFDs instead. This will better segregate my short-term and long-term gains, which will allow me to focus on trading and generating maximum monthly income to grow my passive income portfolio much faster.

In light of attractive yields ranging from 7 to 10% (which may or may not be sustainable), I have decided to nibble at some REITs. These are relatively defensive since they have long-term contracts, and the FED has decided to take it slow in raising interest rates. Here are some of the REITs:

  • Croesus REIT
  • IREIT
  • Soilbuild REIT
  • AIMS AMP REIT
  • Cache Logistics
  • Sabana REIT

I have also decided to pick up a bit more of Keppel, increasing my stake from 3% to 4%, and in light of the recent news of Keppel winning a big contract in Brazil, as well as the upside for oil prices, I am confident in the fundamentals and prepared to hold this for the long-term.

There have been mixed views of a possible recession (and a crash in the stock/property market) by the end of this year or early next year, hence I have decided to play it safe and hold a large percentage in cash (about 35%) in preparation for a possible large crash. In the meantime, I am seeking defensive investments, as well as fixed income investments that have relatively short maturities.

Recently the STI and the US stock indices have started to look toppish, and we have yet to see any breakthroughs. I will continue to monitor the situation, and slowly nibble at new opportunities while awaiting the “Big Crash”. The key at this point of time is to take advantage of market fluctuations to amass more capital by trading mid-term swings and smaller intraday movements.

Good luck! 😀

Monthly Portfolio Update for February 2016 & Market Outlook

For the month of February, the stock markets (STI and US Markets) had a decent rally, which carried on into early March.

Fundamentally, nothing much has changed, and the outlook continues to be bearish. As such, I will not be adding any equity positions till I see a stronger bottom for the market, and whether this rally can sustain.

XLE 090316 energy ETF

One of the major changes I made was to switch out my USO ETF (Oil ETF) for XLE (SPDR Energy Sector ETF). The XLE consists of the major oil and energy companies in the US, which is reasonably correlated to oil prices.

The reason for this switch is that USO has high carrying costs, which is not so ideal for my long-term passive income strategy. A big thanks to one of my blog readers who informed me of this.

Since my previous post predicting the rise of oil last month, I am glad to see many banks and institutions also issuing similar buy calls for oil.

monthly portfolio updates (February 2016)

For my total assets, 9% was kept in Savings & Liquid Assets, 21% was Non-investment Assets, while the rest (70%) was used to build my investment portfolio.

For my investment portfolio allocation, there is a small amount in Fixed income (6%), slightly more in stocks (23%) and commodities (11%), and the rest was in cash (30%), Trading Accounts (14%) and Misc Investments (16%).

Stay tuned for next month’s update, or subscribe for our mailing list to receive monthly updates in your email!
Free subscription: http://synapsetrading.com/getting-started/

 

POPULAR BLOG POSTS IN FEBRUARY

UPCOMING EVENTS FOR MARCH

We will be having our monthly training workshop next Monday (14 March, 7-9pm), where I will be coaching new traders how to select products to trade, and the unique characteristics of each product. As part of the training, we will also be reviewing our trading results, and look for new trading opportunities.

Lastly, I will also be sharing about the fund trading opportunity. They will also get to see my full trade records, and every single trade executed. This is a great learning opportunity to gain practical experience, instead of just relying on theories and book knowledge.

Registration: http://synapsetrading.com/the-synapse-program/
(Note: New attendees can also collect their training materials and reading list during the workshop to commence their home study.)

Monthly Portfolio Update for January 2016 & Market Outlook

For the month of January, the stock markets drifted lower and continued to hover near the lows, as traders and investors speculated whether they would break new lows or start a rebound.

Fundamentally, nothing much has changed, and the outlook continues to be bearish. As such, I will not be adding any equity positions till I see a stronger bottom for the market. I am looking at 2,200 or 2,000 for the STI index.

As part of my defensive strategy, I have increased my holdings in Gold, which should act as a good hedge if the stock markets continue to head lower.

For my long-term capital appreciation strategy, I have also increased my holdings in Oil, as I foresee a possible rebound some time this year.

monthly portfolio updates (January 2016)

For my total assets, 9% was kept in Savings & Liquid Assets, 22% was Non-investment Assets, while the rest (69%) was used to build my investment portfolio.

For my investment portfolio allocation, there is a small amount in Fixed income (6%), slightly more in stocks (19%) and commodities (16%), and the rest was in cash (23%), Trading Accounts (17%) and Misc Investments (19%).

Stay tuned for next month’s update, or subscribe for our mailing list to receive monthly updates in your email!
Free subscription: http://synapsetrading.com/getting-started/

 

POPULAR BLOG POSTS IN JANUARY

UPCOMING EVENTS

I will be having a sharing session this Wednesday (17 February, 7-9 pm) to share my 15 minutes trading strategies (with live demonstration) and the market outlook for this year.
Check availability: http://synapsetrading.com/events/training-workshops/