Monday, June 29, 2020

Mid year review 2020

Time flies. We are now at the mid point of year 2020.

As of writing, STI is down 19.19% year to date. (source Bloomberg)

My portfolio has performed well, and was thankfully very resilient despite the market downturn.

As of writing, it is up 26.2% (before adjustments) and up 22.8% (if adjusted for capital injections and withdrawals)

The performance is promising, but the market is still very volatile and many things can happen.

From now till the end of the year, there are several important elections (such as the Singapore General Elections coming next month, the American elections in November), geopolitical developments as well as the COVID-19 pandemic situation.

Given the behaviour of people of certain countries, we are already seeing a "second wave" in many Western countries, and business might have to shut down again.

There is also the trade wars between USA and China, and the likely weakened consumer spending due to loss of income and/or jobs as a consequence of COVID-19.

Personally, I have lost my job but I managed to recover and find another one few months later. But things are fluid and my current job might not be stable also.

It is also a "blessing in disguise" that I was forced out of my previous "rather toxic" job, as the new position that I am currently in provides a higher remuneration.

Thankfully, my financial position is strong due to the solid financial reserves buffer that I have built up over the years from (mostly) prudent investing. And I was helped by my strong stock selection (and market timing) abilities that allowed my portfolio to stay very much positive despite the challenging stock market environment this year.

I hope I can maintain the strong performance of my portfolio and build on my outperformance over the benchmark STI for the rest of the year.

And to young readers, this market downturn is a good time to start investing. I personally started investing (using my own CDP account) around 10 years ago, when we were just emerging out of the financial crisis. My years of prudent investing has helped provide me with a strong and sound financial buffer, and allowed me to tide through unexpected crises such as the job loss I suffered earlier this year.

So, please stay early and plan ahead! (my blog's motto hehe)  😀

Do also stay safe and healthy.

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