Hello everyone! It’s the end of yet another month, and hopefully March has been great for everyone!
But we all know that March hasnt been great since growth stocks have been hammered pretty badly as the US yield continue to go up, with sector rotation happening from growth stocks towards value stocks.
As with our monthly updates, here are what we’ve done in March 2021 with regards to our personal finance.
Position Added: Crypto Futures Fund
Take Profit / Cut Loss: N/A
Position Added: Crypto Futures Fund, Tesla, Palantir
Take Profit / Cut Lost: Baba
As we previously updated, our cash in hand is very low, and hence we are unable to buy more us stocks as much as we want to.
For the month of March, Mr and Mrs Budget both closed our Syfe account and shifted it towards a crypto futures fund.
When the opportunity came for us to invest into a crypto futures fund, we took the chance to liquidate our Syfe account and shift it towards the fund. While we previously mentioned that our timeframe for Syfe is meant to be a long term 5 to 10 years timeframe, the opportunity cost of not riding onto the crypto boom now is just too big for us to miss.
Hence we went back on our words and decided to touch our Syfe account which was meant to be our emergency fund and allocate it into the crypto fund.
Since investing into the crypto fund, the returns to date is an astounding 180% in slightly over 1 month. Hopefully the fund performance continue to grow and it will accelerate our journey towards financial independence. Had we kept it in Syfe, the portfolio will probably be at around S$14,000 now instead of the current S$58,000.
In terms of equities, we continue to hold very high conviction on the stocks that we are holding on, and we do not have any intention of selling at all, and instead, it is regretable that we do not have any more bullets.
Mr Budget did not average in any of his position due to low cash on hand. Otherwise, we would have averaged in on Unity (down 40%), Tesla, Palantir (down 20%) and even SE. ARK Invest had also been consistently averaging into these counters over the past 2 weeks.
For Mrs Budget, as she received a bonus payment from her employer, the Mrs bought into Tesla and Palantir. Mrs Budget also took the chance to sell off her BABA at cost and rotated into Tesla. Tesla now becomes her highest equity holding (even more than Mr Budget haha) and we intend to hold this for the long term.
With our rotation into the crypto futures fund mentioned earlier along with the mini price correction of the us growth stocks, our crypto portfolio has actually swelled a lot and is even bigger than our equity portfolio now! This is actually quite scary also, so we are following closely any major developments in the crypto market for signs of overheating.
Net Worth Updates
While the stock market continued to crash further this month, our net worth still continued to increase as the gain from the crypto market once again cushioned the US market correction for us.
Our combined net worth is now at $1,235,000, including CPF but excluding our property and mortgage. This is up from S$1,100,000 last month, a change of +S$135,000.
This is a lower than expected gain due to the US stock market correction – for our US stock portfolio, we saw a further loss of -S$34,000 on top of our February loss of -S$25,000, wiping all of our gain since November last year.
This loss however, was offset by the gain in crypto market where we gained +S$145,000. The rest of the gains are from employment and CPF.
So we are again quite thankful that we manage to get into the crypto market space, and we think there are still more room for massive growth in the crypto market. While the market seems a bit too optimistic now, we do see price correction happening, which is healthy for the market overall.
Crypto is also the best performing asset class this year, so investors do really need to think about having crypto as a hedge in your portfolio. It hedged really well for us as you can see from the updates above.
April 2021 Outlook
For April, we are still following closely the development in the US market. We think that market will continue to move sideways as the market wait out the various economic data (inflation, yield).
There are a lot of stocks which has fallen below our initial purchase price such as Palantir and Unity, along with other attractive counters on our watchlist which has fallen a fair bit: SKILLZ, PayPal, BNGO, NIO, ADA.
For example, for Unity, it has fallen 40% below our initial purchase price, and for Palantir, it has fallen over 20% from our purchase price.
Our cash in hand is still relatively low and as much as we want to deploy our funds now, unfortunately we do not have much bullets now.
If market continues to drop a further 10%, specifically in terms of prices:
- Unity -10% from current to: $85 per share
- Palantir -10% from current to: $20 per share
- Tesla -15% from current to $550 per share
We will consider taking some margins to purchase these shares or cash out some of our profits from our crypto portfolio and move it into equities.
Otherwise, we will just sit it out and build up our cash on hand and hopefully we will have some bullets to invest come May. And hopefully our crypto investments continue to grow overtime!
In terms of crypto, we are following closely the prices of $CAKE. If the price do see some form of correction, we will be initiating a position on it. If any prices of our current holding drops by 40-50% from the current price, we will also be averaging in on them.