Freddy wrote another interesting piece of insight here - Markets Remain Turbulent as the World Fights a Pandemic which explains why there was no re-optimization given the current state of the market and what should one manage their investment.
According to him, a bear market doesn’t start with a bang. Instead, a bear market is a gradual decline of 20% and more in asset prices over a prolonged period of time and investors have ample opportunities to react to the changing market environment. Given that the latest decline happened in a span of less than two weeks, what we’re really witnessing is a correction that has morphed into a market crash.
The data suggests that we are in a market crash, not a bear market. This means that we expect the market underperformance to be short-lived, not lasting more than a few months. As such, we’re managing your portfolios through the crash by keeping your asset allocations unchanged.
When you have a long-term view of your investments and you’ve already prepared your investments to suit your risk appetite and your financial goals, it’s easier to maintain a level head to ride out the current uncertainty. If you react to the short-term noise and sell your investments, you’ll struggle to get back into the market when the recovery happens, and you will end up pocketing losses. Instead, focus on the long-term and take advantage of the dip in the markets by continuing to dollar-cost-average into the markets.
Do take a look at his article for more information.
Anyway, we have 3 portfolios on 2 accounts now due to our new strategy - New Strategy: StashAway + Supplementary Retirement Scheme (SRS):
KPO and CZM Cash - StashAway Risk Index 22%
According to him, a bear market doesn’t start with a bang. Instead, a bear market is a gradual decline of 20% and more in asset prices over a prolonged period of time and investors have ample opportunities to react to the changing market environment. Given that the latest decline happened in a span of less than two weeks, what we’re really witnessing is a correction that has morphed into a market crash.
The data suggests that we are in a market crash, not a bear market. This means that we expect the market underperformance to be short-lived, not lasting more than a few months. As such, we’re managing your portfolios through the crash by keeping your asset allocations unchanged.
When you have a long-term view of your investments and you’ve already prepared your investments to suit your risk appetite and your financial goals, it’s easier to maintain a level head to ride out the current uncertainty. If you react to the short-term noise and sell your investments, you’ll struggle to get back into the market when the recovery happens, and you will end up pocketing losses. Instead, focus on the long-term and take advantage of the dip in the markets by continuing to dollar-cost-average into the markets.
Do take a look at his article for more information.
Anyway, we have 3 portfolios on 2 accounts now due to our new strategy - New Strategy: StashAway + Supplementary Retirement Scheme (SRS):
KPO and CZM Cash - StashAway Risk Index 22%
KPO SRS - StashAway Risk Index 36%
CZM SRS - StashAway Risk Index 14%
1. PORTFOLIO SUMMARY (as of the last day of the month)
Based on the statement (31 Jan 2020), KPO made $140.81 and CZM made $35.11 for the month.
As of 17 Mar 2020, these are our portfolio performance:
KPO and CZM Cash - StashAway Risk Index 22%: $21,487.89 (-8.19% - Capital: $22,500)
KPO SRS - StashAway Risk Index 36%: $3,526.30 (-34.89% - Capital: $4,250)
From here, you can see the difference in volatility/losses based on both our SRS accounts which started around the same time but with vastly different risk.
2. PORTFOLIO DETAILS
Note that these are reported in USD.
3. FEE CALCULATIONS
We used Grab points to redeem for StashAway credits last year (1,200 points for $5 credit) but I believe it is no longer available.
StocksCafe
Looking at the time-weighted return (-16.30%), we can see that StashAway Risk Index 22% is "outperforming" the STI ETF (including fees) in the sense that it is not losing as much. In addition, it has a lower max drawdown. Interestingly, this is the first time we see higher volatility for the StashAway portfolio.
Similarly, StashAway Risk Index 22% is also outperforming the SPY (SPDR S&P 500 ETF Trust) with much lower volatility and max drawdown.
Which is the best? Only time will tell :)
StashAway Referral Link for Our Readers
Here you go: KPO and CZM Referral Link
If you are interested in the smart portfolio tracker (StocksCafe) which I am using as shown above, sign up using my link for a discounted rate :) Refer to our Referrals page for more information.
You might be interested in previous months update too:
- StashAway - January 2020 - $31,742.42
Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)
1. PORTFOLIO SUMMARY (as of the last day of the month)
 |
| KPO |
 |
| CZM |
Based on the statement (31 Jan 2020), KPO made $140.81 and CZM made $35.11 for the month.
KPO and CZM Cash - StashAway Risk Index 22%: $21,487.89 (-8.19% - Capital: $22,500)
KPO SRS - StashAway Risk Index 36%: $3,526.30 (-34.89% - Capital: $4,250)
CZM SRS - StashAway Risk Index 14%: $2,819.15 (-11.68% - Capital: $3,000)
From here, you can see the difference in volatility/losses based on both our SRS accounts which started around the same time but with vastly different risk.
2. PORTFOLIO DETAILS
Note that these are reported in USD.
 |
| KPO and CZM Cash - StashAway Risk Index 22% |
 |
| KPO SRS - StashAway Risk Index 36% |
 |
| CZM SRS - StashAway Risk Index 14% |
3. FEE CALCULATIONS
The fee stated is based on the monthly-average assets SGD $13,367.34 x 0.8% / 366 days * 31 days = $9.06.
The fee stated is based on the monthly-average assets SGD $2,675.21 x 0.8% / 366 days * 30 days = $1.81.
We used Grab points to redeem for StashAway credits last year (1,200 points for $5 credit) but I believe it is no longer available.
StocksCafe
Looking at the time-weighted return (-16.30%), we can see that StashAway Risk Index 22% is "outperforming" the STI ETF (including fees) in the sense that it is not losing as much. In addition, it has a lower max drawdown. Interestingly, this is the first time we see higher volatility for the StashAway portfolio.
Similarly, StashAway Risk Index 22% is also outperforming the SPY (SPDR S&P 500 ETF Trust) with much lower volatility and max drawdown.
Which is the best? Only time will tell :)
StashAway Referral Link for Our Readers
Here you go: KPO and CZM Referral Link
If you are interested in the smart portfolio tracker (StocksCafe) which I am using as shown above, sign up using my link for a discounted rate :) Refer to our Referrals page for more information.
You might be interested in previous months update too:
- StashAway - January 2020 - $31,742.42
Do like any of the following for the latest update/post!
1. FB Page - KPO and CZM
2. Twitter - KPO and CZM
3. Click here to subscribe using email :)
4. Instagram - KPO_and_CZM (Did you see those delicious food photos to the right --> Unfortunately, you can't see it on mobile.)
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