Sunday, May 22, 2022

This too shall pass

Like many others, my portfolio has taken a beating in the last few weeks. The factors are due to the Ukraine war which leads to supply chain issues and inflation, and so the Fed has to keep interest rates high. This is because when interest rates are high, there is more demand for USD, which will push the value of USD up, and help mitigate the effects of inflation. As interest rates are high, this typically have a negative effect on the stock market. 

The SPY recently closed at 3901, which is just inches away from the 20% drop (at 3837) from recent high. Next few weeks will tell whether we enter another bear market or not. 

Here are the overall returns of the components in my portfolio:

Cryptocurrency -44.51%

SPY Fund          -11.56%

Bond                 -9.24%

USA                  -2.74%

One-Fourth       -5.22%

SGP                  +6.77%

BCIP                +6.69%

CPFIS              +19.64%

Dividends are not included in the above. 

As before, the plan is to hold and ready my ammo to invest even more, since time is on my side. 

Meanwhile, the crash of TerraUSD and Luna caused some folks to lose their life savings. In this it is timely to revisit the 3 golden rules of investing: 

1. diversify, 

2. diversify, 

3. diversify. 

Never put all your eggs in one basket!

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