How was June like for Singapore market?
It was sell in May and go away for May. Then in June, it was buy in June and fly to the moon! At the beginning of June, market rebounded strongly after news of possible US Fed's rate cut coming this year and US lifting of the tariff on Mexico. Then nearing the end of the month, President Trump tweeted that he had a great call with President Xi and both sides agree to an extensive trade talk in the coming G20 summit. The hope of a trade deal between the 2 superpowers boosted STI even further to end the month with a gain of 6.54%. Apparently, nobody is bothered about the gloomy outlook of the Singapore economy.
How was the portfolio performance in June?
This month my SG portfolio did not manage to outpace the index's strong rebound (as the index went down much further in May). My portfolio return for the month was +2.97%. The portfolio went into nearly 90% cash after the sell down in May. but in mid June, the system started loading up stocks until it became 80% invested by the end of the month. Two of the notable stocks in the portfolio currently are GSH Corp that is currently sitting with an unrealized profit of +24.64% and ISOTeam with unrealized profit of +6.02%. The current portfolio is actually heavyweight in REITs given their recent breakouts after the Fed's announcement of further monetary easing policies till the end of the year. It is a surprise that even after the breakout, these REITs in my portfolio are still yielding at 7%!.
Total return since inception rose to +34.07%, ahead of benchmark STI ETF (SGX:ES3).
June return: +2.97% (vs ES3: +6.52%)
YTD return: -2.43% (vs ES3: +10.41%)
Total return since inception (since June 2016): +34.07% (vs ES3: +31.06%)
Remember what I said in last month's report, that there could be a rebound coming in June as we enter into the oversold region? And here we have, the much needed rebound. Now that we know Trump and Xi agreed to continue their trade negotiation, the market may continue to rally into July. However as of now, I am not expecting a huge rally given that the system's MATA percentage is not moving much. Next in focus would be the Fed's rate hike decision in July. Now that there is more hope of a trade deal between US and China, would Jerome Powell decides to hold rate instead of cut? Keep your fingers crossed. To know first hand where the market is heading every week, subscribe to our premium subscription package. Visit our main page to find out more.
Get Full Access and follow our system's quest for ABNORMAL returns
Performance Join as Member
Follow our blog on Facebook!
![[Watchlist] US Stocks caught Trending on System's Radar for Week of 17th Sep 2018](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVlw8ePzHYbUGgNe8-I-gEMvS7StYEclF_E7lAhUHjHAXuTh1bUMXAt6Zg1o0qEFZfwIkS7__E3zVLFnLecU05bRmfsVTIxBqnwAsXocCDYCMCKYT3rXnPacIuEnANSsBQV6kHgPYQa8he/s72-c/stock-market-2616931_640.jpg)
![[Watchlist] US Stocks caught Trending on System's Radar for Week of 27th Aug 2018](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhld7TDTlKp433twtL0Ha0L_Aky2PiMKIJCcjTHgd4gZ0AUcAx1Y0R0c4NkdGA8Zru5eDEU4Mnfa2786NG_5UEfTqI2Hh4GQG6gai8q4XeNDMSlKb51xm-O7VwmhIevASVx62B5IC2drPM4/s72-c/stocklist1.jpeg)
Hi, thank you for the content. Any views on liquidity constraints for your portfolio? For e.g. GSH Corp was a good performer in June, but it wasn't exactly liquid enough to accumulate a decent position without incurring significant market impact. How would you go about improving the scalability of your approach, because if your returns are great, eventually you will compound your capital to such levels that liquidity becomes a big issue.
ReplyDeleteSorry for missing out your question previously. Yes liquidity is something the system has to take care once the capital grew to a huge amount. It boils down to the scalability of the system. One way is to spread the capital into more stocks and also to other markets. But still there is still a limit as to how much the system can invest at once without moving the market (or a particular stock esp those illiquid ones)
Delete