What Have We Done This Month Towards Our Financial Goals – April 2021

Hello everyone! It’s the end of yet another month, and hopefully April has been great for everyone!

For friends who are investing in the US and Singapore market, April should overall be a decent month – both markets saw some recoveries and should recover some losses in March.

If you have been investing in the crypto alt market, you would have also seen decent returns on your portfolio.

As with our monthly updates, here are what we’ve done in April 2021 with regards to our personal finance.

Mr Budget
Position Added: Matic, SNX, Luna, Binance Coin, LRC, ETH
Take Profit / Cut Loss: Fastly, Crowdstrike, Razer

Mrs Budget
Position Added: Matic, SNX, Luna, Binance Coin, LRC, ETH
Take Profit / Cut Lost: Fastly, Crowdstrike, ARKG, PayPal

For the month of April, we did further reshuffling of our portfolio.

In order to raise more funds to fuel our crypto portfolio, we have taken profit and cut loss on some of our lower conviction US stocks.

We’ve cut loss on Fastly (-27% in 6 months), and taken profit on Crowdstrike (+75% in 8 months).

Mr Budget also took profit on his Razer position (+80% in 2 years) while Mrs Budget took partial profit on her PayPal position (+45% in 5 months).

These stocks are still great stocks and fundamentally nothing changes. If we had unlimited funds, we would have loved to keep holding them. However, the opportunity cost of not being in the crypto market is slightly too high for us now, hence we reallocated some funds over to our crypto portfolio.

What’s left in our US holdings are our higher conviction holdings such as Tesla, SE, NVIDIA, Alphabet, and Palantir.

With these proceeds, we have initiated new positions in a few crypto: Matic Network, Synthetix, Terra, Loopring and averaged up on our Binance Coin and Ethereum position.

Net Worth Updates

With the slight recovery in the US stocks as well as the rotation into crypto, our net worth saw a massive hike this month.

Our combined net worth is now at $1,640,000, including CPF but excluding our property and mortgage. This is up from $1,235,000 last month, a change of +S$405,000.

With this gain, we have actually exceeded the net worth growth target we’ve set for 2021 and any further growth from here will be a bonus for us.

We are quite mindful that these are all paper gains for now, and if the crypto market crash, we will be brought down back to earth.

This month’s gain is contributed by gains from our US stocks (+S$20,000), the crypto futures fund we mentioned last month (+S$70,000), crypto alt coins (+S$300,000), and the rest are from employment and CPF.

It’s a bit scary to type all of those out – feels like we are heading into a massive bubble territory, hence we are keeping an close eye for any signs of overheating.

As mentioned last month, we foresee a retracement in the crypto market, and it did happen about 2 weeks ago where prices came down 20-30%. Price corrected shortly after that and we continued to add into our positions.

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.

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.

May 2021 Outlook

For the month of May, we will continue to invest more in the crypto space. We are looking to reallocate our capital from Bitcoin into other smaller cap coins.

While all is well in the crypto space now, what we do notice is that, we are currently in an altcoin season, where all the alternative coins are blowing up, while bitcoin dropped in value.

There is an index which tracks the bitcoin dominance, and currently the bitcoin dominance index is showing a sharp decline. The last time that happened in January 2018- the whole crypto market crashed -80%.

Crypto crashed in January 2018 when Bitcoin dominance fell to just 32%. This month, Bitcoin dominance dropped from a high of 69% to just 48% today.

So we are very mindful about that, and may start to look into reallocating our capital out from the market if things get too frothy in the altcoin space.

For now, we are looking at averaging into our Matic position as it has become our highest holding, and will continue to look at new coins in the Ethereum L2 space.

In terms of the economy, COVID cases seems to be creeping up in Singapore, and the cases in Malaysia and India has gotten much worse. Just when we thought things will be moving for the better this year, it seems like we are still in the middle of it all.

So in the meantime, do stay safe, and have a good labour’s day break!

Also Read: What Have We Done This Month Towards Our Financial Goals – March 2021

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