Sorry for the late update, have been running personal errands. But I’m having a good week. I took my PET CT scan to check for cancer recurrences. I tend to get ‘scan-anxiety’ during this period. While I’ve been managing it better, you never know what might turn up. The good news is that the results seem pretty clear. At this point I’ve beaten the odds of my disease, and I should count myself lucky. The intervals between scans are widening from 6 months to 8 months, and hopefully will move to 1 year for the next round.
Took my 1st dose of the Pfizer vaccine yesterday too. Process was pretty smooth, and I was jabbed within 5 minutes of entering the CC. Arm felt a little sore but I’m recovering well with no symptoms.
Finally, markets have moved in my favor. It’s been gratifying that I’ve been proven right about the value rotation and inflation fears being grossly exaggerated. Rotate here, rotate there… it’s all the usual media nonsense and backward rationalising. Glad I’ve become experienced enough to know what’s real and what’s fake news. All of my growth stock buys during the first half of the year have been quite profitable, and I’m moving quickly back to portfolio highs. I’m pretty optimistic that things can keep climbing since we just came out of a down period for tech stocks. Markets move in cycles and it looks good for the rest of the year.
I’m going to let my equity portfolio sit for a while, and won’t be buying very much. I have been concentrating my buys during bloodbaths, and we are just not in that region anymore.
My next investment moves are to increase my fixed income portfolio. I didn’t build it up enough early in the year and had less cash on hand than I anticipated. The bond market has been left for dead, but I like not following the crowd.
So I want to be more disciplined and bite the bullet to move funds over. Will be adding $34,000 to the Blackrock China Bond fund to make $80,000. With leverage, it should be about $300,000 total, providing 17% yield. Once I find a good opportunity, it doesn’t make sense to keep it small, and I will want to make a substantial investment. But I’m stopping at $80,000 and shouldn’t be overdoing it. At 75% leveraging, it doesn’t take a lot for it to go wrong.
I’ll be taking advantage of the higher valuation of my stocks and drawing cash down from my margin account. Margin valuation will drop from ~205% to ~180%, still a respectable buffer. I don’t anticipate selling stocks, and given the environment, I’m ok to bear higher debt for the moment. I’ve been playing it pretty safe, and I’ll push the limits while the going is good.
Passive income from fixed income should then reach about $2,500. I have plans to double this over the next few years. There is also the disability insurance income (DII) side of things, which provides another $3,000 plus. But I find that is an unreliable and unstable form of passive income. The insurance company has delayed claims and payouts numerous times, and it takes months to see anything in my account. A huge downside of DII is that it creates an ongoing relationship with the insurer, where you need to keep providing evidence and doctor statements at the insurer’s whim. The Singapore consumer has incredibly little power, and the way we do business is a large reason why the vast bulk of my assets aren’t here.
I have further plans to reduce it by selling my Temasek bond. I tried to sell it earlier but my pricing was 2% below what I could see online at Bondevalue. 2% on USD $280,000 is not a petty amount. My RM explained it was because of over-the-counter (OTC) trading and Bondevalue’s quotes were always overly rosy. But I can’t help but feel ripped off, and I won’t choose bonds again. I’ll monitor this for a while and will probably get rid of it soon. Will roll the funds over to slightly riskier mutual funds so I can get the yield up even further from 10%.
Hope that serves as a good update. Have a good weekend all!