Friday, May 24, 2024

Portfolio Returns for May 2024 - Slight Turbulence and All-Time Highs

I felt it would be good to track the returns regularly since the returns will fluctuate from time to time depending on the stock market.

Here are the movements for this month:



What was interesting this month was the correction in SP500. After dropping from 5264 to 4953 from 28 Mar to 19 Apr (3 weeks, a drop of ~6%), it is back on its upward path. Hence the upward tick on my SPY fund. Other than that my crypto portfolio saw a spike! More on that below. 




For the Robo-Advisors, most reached all-time highs. Syfe Reit saw a recovery from its all-time low. 😛




Additionally, I think it will be interesting to see the breakdown of my portfolios in percentages (above). There is a component 'X' which I do not want to disclose for now. The concentration of 'X' over the last month has dropped from 19.6% to now 15.8% but is still too high. 

Market events over the last month:
  • The wars in the Middle East and Ukraine see no signs of subsiding. Judges at the top United Nations Court ordered Israel to immediately halt its assault on the Southern Gaza city of Rafah, amidst accusations of genocide. Even within Israel itself, there are protests against Netanyahu's government. If even his own people don't support him, I wonder what is the point of this war exactly? Once again, we see how the madness of a single person with power can cause chaos in the world. 


  • Bitcoin halving is done as of 20 Apr 2024. After that there is a drop in prices, followed by a slight increase. 


Where will it go from here, I quote from Motley Fool below. We will only know if it increases 400% in Apr 2025, 1 year from now. 

Historically, in the year following a halving, Bitcoin has risen by more than 400% and reached new all-time highs. While Bitcoin has already achieved a new all-time high, the effects of this halving, combined with increased demand from recently approved spot Bitcoin ETFs, could exert significant pressure on its supply in the long term.

  • SP500 suffered a drop of 6% in 3 weeks from end-Mar to mid-Apr. From Investopedia's definition of 'technical correction', this does not translate to a technical correction, since the drop of 6% is less than the >10% and <20% required. Will there be a 'real' correction later on? I think for sure, but no idea when it will happen. 

  • Straits Times Index got a boost this month from news of sweeping measures to rescue the flailing Chinese property market. Specifically, Beijing removed the floor on mortgage rates and encouraged local governments to acquire homes to convert into affordable housing. Let's see if this will lift my Capitaland China Trust 😅

https://www.straitstimes.com/business/companies-markets/sti-rises-03-after-china-unveils-property-stimulus 

  • Inflation Data (May 13th week): Higher-than-expected inflation reports (consumer and producer price index) raised concerns about the Federal Reserve needing to keep interest rates high. This caused a stock market decline, snapping a winning streak.

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