If you are reading this in the future, let me share what the situation is like in June 2020. There are many uncertainty due to the Covid-19 Pandemic. Singapore has just started to implement Phase 2 Opening since the 2 months Circuit Breaker (CB) and the new normal is the popular saying during these times. We are adapting to life after CB, even the market is still adapting and uncertain. Having said that, just wanted to share what my plan is with my stocks portfolio. I will be sharing my stocks strategy and what I will be doing in this uncertain times. So with that, let’s MELEPAK with my June 2020 Stocks Strategy!
(Disclaimer: I am NOT a professional trader nor am I an expert. Everything I shared is just my thought process and my personal decision)
Missed Opportunity in March 2020
Before I share my strategy in June, let me go back to March 2020 when the pandemic first became apparent. Back then, as more and more countries were affected by Covid-19, markets started to go down and SGX was not spared. Being the kind who prefers to hold (or HODL in crypto) instead of trading, I did not do anything with my portfolio. And when the market was down, I did not have enough funds to fully utilized the situation. I did got into Nike @ USD63 (NYSE) but it was only a small portion.
Other than that, my portfolio got stuck and brought down along with the market. And as we knew, by May, the market has rebounded a little and we are seeing more greens in the market. My Nike shares is now @ USD90. Not bad ROI huh? But I only made like a few hundreds of profit as it was just a small amount.
Anyways, by May/June, my portfolio has got back to almost the same (not exactly. it is still 15% down pre-Covid) but at least I got to enjoy some dividends in May/June.
But overall, I take it as a missed opportunity as I was not prepared for it.
So What Stocks Strategy Have I Decided For June 2020?
Well, after purchasing my first private property in early June (Will share in another post), I do not have a lot of funds to take advantage if there is a 2nd round of market crash due to 2nd wave of Covid-19. As such, I’ve decided to rebalance my portfolio and cash out slightly more than 1/2 of my overall portfolio.
Although by doing this, I am taking a slight loss overall, but I like to think as taking a small hit now so that I can maximize the gain when opportunity arises. Not sure if this is the best thing to do and I’m sure more experience traders/investors will have a different opinion but that’s the risk I am taking.
Plus having holding more funds now will allow me to take advantage of any opportunity such as investing in another website, buying undervalue commercial properties or even starting my co-living business (another post for this soon).
What Stocks Am I Holding After June 2020?
|Stocks (Symbol)||Quantity||Value (26 June 2020)|
|Sasseur Reit (CRPU)||5000||$3750|
|Sembcorp Industries (U96)||5000||$9350|
|Sabana Reit (M1GU)||5000||$1800|
|Sheng Shiong (OV8)||5000||$8100|
It’s funny that all the stocks I’m holding starts with S and yes I am a little OCD with all 5000 quantity. I’ve decided to hold these stocks to collect dividends and going long term with them. Although I did sold off a portion of these stocks. For example, I had 15000 shares of Sasseur Reit but sold off 10k shares.
What Now That I Have Execute My Stocks Strategy?
So with the funds that I have after the sold off, I will monitor the market and wait. With this move, I am more flexible to take advantage no matter where the market goes after this – be it up or down. Let’s see if this stock strategy pays off. I know it is a risky move but one that I’ve considered and willing to take.
Any investment is risky if you don’t have a clear plan. But even with a solid plan, you need to know the risk.Pak Melepak (2020)
I would love to hear your take on this and even your own strategy if you have any. Do comment below or you can also share your opinion by emailing me straight.
Thank you and that’s all the time for this MELEPAK session.