The portfolio has been doing good recently, mostly thanks to big runs in Nvidia, AMD, and even Amazon. The portfolio should be about $1.2 million now, and it looks like it will hit $1.3 million before the year is over.
While I made good moves buying into my growth stock favorites in the first half of 2021, it wasn’t necessary to raise cash by selling small stakes in Amazon, Nvidia, and the S&P 500 ETF, all of which are hitting new highs. I was a bit too much on the conservative side, but it’s quite difficult to find the right balance.
The last time my portfolio was crossing this range, I was contemplating taking some gains and locking it up in fixed income. Things look a little too sunny for the stock market and my contrarian instincts tend to kick in. I’m also wondering what the stock market would look like next year. Growth rates in 2022 are likely to appear less amazing because 2021 is going to be such a powerhouse year due to the recovery. Earnings in 2022 might appear quite rubbish compared to 2021. If I had to guess, I would say 2022 has good chances to be a negative year for the stock market because of that. The Fed is also likely to be raising interest rates then. It’s better to make some small moves now to prepare for that.
So I’m on the lookout for a new priority bank. I’ve hit a credit limit on my current account, and the next tier of private banking there is some time away. I also want to see if I can pledge my unleveraged shares to unlock more value, as well as reduce my margin financing rates. So far, I’ve talked to OCBC premier since their private banking limit is the lowest at SGD $1 mil. But their platform is quite behind, and they don’t support equity trading. They don’t seem especially keen to accept U.S. shares as assets under management (AUM). But who would have $1million in cash on hand? You lose so much money by just keeping it in cash.
I can also confirm that cryptocurrencies don’t count at all for these banks. The guy on the phone laughed. I don’t have any crypto myself, but I was curious how open-minded the banks are. Not at all it seems.
Overall, I’m pretty neutral now. Risks have risen along with prices, and I don’t see many bargains now. Chinese tech stocks look fairly cheap, but who knows how long the government crackdown will be. I think long-term it should be positive for Chinese stocks, but the short-term looks full of risk. Witness the Didi IPO trap, screwing over retail investors so insiders can sell.
Selling is also not on the cards for me, especially since I had to wait over 6 months for my portfolio to recover. Equities have been running, and I won’t pull my cards out now.
On the personal side of things, I’ve been in a reflective and quiet mood. I thought I wanted to educate and guide people to a better path in their finances and retirement. But I haven’t gotten as much traction as I would like. It’s my own fault as well, as I haven’t marketed myself enough or worked hard enough. I’ve been hesitant about putting myself out there. You just become a target, there is little/nil financial reward, and most won’t listen anyway.
I see millions more flocking to gurus and crypto scams, with little more information than rocket emoticons and funny names. It’s a fool’s errand to try to dissuade them. And who knows, maybe they are right. The top investments in 2021 have been a failing movie theater chain, and cryptocurrencies with pictures of dogs.
Sorry if that’s a rather cynical way to end this post, but I’ve always used the blog to record how I’m feeling at the moment. Not sure if it’s covid fatigue, and I don’t think I’ll be like that forever. I’m still focused on growing my own wealth and sharing what I do here.
But I’ve often thought to myself: financially, I’ve already achieved what the vast majority of Singaporeans spend their entire lives chasing for. I have over a million in liquid assets (double that if you account for my house and CPF) and a passive income that exceeds the median salary. Why shouldn’t that be enough? Why do I need to do more? And what is something worth doing?
I think I’m still trying to answer those questions, Right now, I’m just trying to be right now, and enjoy the present and what I have.