I remembered when it was this time last year, I was feeling very good. Besides the fact that I got my bonus, my investment portfolio was showing a good gain then.
But this year … (sign) … the value of my portfolio literally tanked by 15%.
Was it expected? On reflection, yes, when I looked back at the first blog I published early this year.
In that blog, I forecasted that the market would drop by 10-20% in 2018 and sadly it did. Forecasting is one thing but actually receiving the reality is another.
It still feels very painful to see the value of my investments deteriorating day by day. Well, I am trying to follow the established wisdom in this kind of downturn … i.e. “Don’t Panic and Stay the Course”. I hope things will turn around in 2019 … I have given up on 2018 already.
Anyway, back to my year end bonus …. again like last year, I spent it all even before the month is over 🙂
If you are wondering how, let me share ….
- I spent quite a fair bit of the bonus in 2 short overseas vacations with family
- I topped up my SRS to the maximum contribution
- I contributed to my parents’ retirement accounts
For what still remained, I decided to buy small amount of ETFs that tracked STI, HK HSI and S&P500 index … hoping to average down my cost price.
This year I skipped the top up to my children’s Special Account and did not do any refund to CPF Property Loan.
One reason is that I am feeling cash poor and rather depressed this year.
I also feel that the equity offers better value. Furthermore, interest rate is also going up and the 2.5% and 4% from CPF and the locked-in nature of CPF make it less attractive now.
I hope the market will brighten up in the coming weeks and months.
If I don’t write a new blog, Merry Christmas everyone. Take care and have fun.