New Portfolio Milestone And The Confusing State Of The Current Stock Market

For the longest time, when Mr Budget look at portfolio shared by other individuals, whenever we saw that the figure is more than S100,000, there will be slight envy.

A 6 figure portfolio seemed to be an invisible target to hit – probably because of all the media sharing articles on how one should reach a S$100,000 savings by 30. And for the longest time, our soft goal is to reach S$100,000 in Singapore equities.

Finally, Mr Budget’s Singapore’s portfolio touched S$100,000 for the first time yesterday! And Mrs Budget’s total equities (Singapore and US) portfolio hit S$100,000 too!

While Mr Budget’s equity investment has been more than six figures for a while now as we’ve shared on our portfolio page, our equities investments consist of stocks from Singapore, US, HK and Malaysia.

And when we track these portfolio, we look at these portfolios respectively because all market behave differently, and each portfolio serves a different purpose. For example, for our Singapore portfolio, they form the backbone of our dividend investment for future passive income, while our US portfolio serves as the growth component of our overall portfolio.

Hence reaching S$100,000 of value for our Singapore portfolio was a mini milestone for us and we wanted to just put this down here for future reference. 🙂

Here’s the portfolio value now:

As of 10/6/2020Mr BudgetMrs Budget
Singapore Portfolio$106,392.91$80,985.18
US Portfolio$64,537.42$21,550.35
Excluding Syfe and SSB which is our emergency fund

And we just realized that we have a combined equities holding of over S$270,000. We may be reaching our short term 2021 portfolio target goal of S$300,000 earlier than we projected!

Looking at the figures and penning this down, we realized that this is quite a significant amount, although it did not occur to us that our exposure to the market is quite large. Thinking about it scares us a little.

We will continue to invest and hopefully this rewards us in the future!

Stock Market Disjointed With Actual Fundamentals And State Of Economy

The majority of the growth of the portfolio is from the rebound of the market, and it seems like prices of equities across the board are going back to pre-covid prices.

As each day passes, and stocks go back to their all time high, the likelihood of us seeing a W shape economy (now that we are passed the V shape) is getting higher and higher.

We still think the stock market is very disjointed with the actual economy – how can price levels be at pre-covid prices as if covid never happened?

And then there are news like this:

Hertz skyrockets 825% since filing for bankruptcy as Robinhood traders pile in

Nikola May Not Be Next Tesla, But Its Valuation Is More Extreme

The Nikola article is just ridiculous – Nikola is forecasting zero revenue for 2020 and its first $1 billion year in 2023. And yet Ford Motor Co., which is expected to report about $115 billion of revenue for this year, has trailed Nikola by market cap at several points in intraday trading.

A zero revenue company has a higher market cap than a $115 billion dollar revenue company – the world has officially gone crazy, and for us, we probably will not be able to sleep well if we were to park some money in companies like Nikola.

In any case, the companies on our wishlist continue to hit their all time high, and its becoming quite expensive for us to buy anything.

However, over the past one week, we averaged down on Mapletree North Asia Trust, and initiated a position on Prime US Reit, both of which were still trading at below their NAV. That should conclude our purchase for the month!

Should the market plunge, we still have some cash to fall back to, to pick up more counters or average down on our current shareholdings.

With the various transactions, here’s an update on our war chest:

Mr Budget War ChestS$80,000
Mrs Budget War ChestS$30,000
Mr Budget Home Loan War Chest (pending)S$50,000
Mrs Budget Home Loan War Chest (pending)S$120,000

Counters on our watch list:

  1. Ascendas REIT
  2. Keppel DC REIT
  3. IREIT Global
  4. SGX
  5. DBS
  6. Mastercard
  7. Adobe
  8. Amazon
  9. Square
  10. Facebook

Stay safe everyone, and happy hunting!

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