Thank you for coming here.
It is end of Apr, well beginning of May~. Actually, I updated my Net-Worth tracking sheet on 28th Apr. However, due to the tight schedule of the project I am currently on, I am only writing this post today. Apologies for the delay!
So lets get started. Again, below numbers are as of Apr 28th.
Net-Worth increase from last month: 21K SGD
The increase is due to stock market rebound in Apr and my wife's salary.
Compared to the drop (-56K) last month, we are still on our way to recovery.
Investment: -0.78% annualized return, incl. dividend
Compared to last month (-3.76%), it is an improvement.
I emptied 2/3 of my limited war chest quickly during the beginning of the downturn, far from the bottom. I became very cautious about the remaining war chest. So when the bottom actually came, I was thinking maybe it would drop further. So I still have 1/3 of my war chest.
So I guess the strategy in the downturn is to set a target price and go all in after the target price is met. Again, the baseline should be DCA. If the average buying price is lower than DCA, I think one should be satisfied. I consider it the benefit we get by not entirely staying "Passive".
Of course, it is much harder done than said. I knew not to time the market from the very beginning of my investment journey, yet I am still trying to do it. And the benefit vs the time and emotional investment? Not sure...
I do not know what will happen next. With the ease of isolation measures, maybe the stock market will continue to recover. Maybe the fundamentals that can support this kind of market level are long gone and we will have another crash.
Whatever happens, life goes on. If you are in your early 30s or younger, I doubt this downturn will have any material impact to the overall financial success of your life. So relax and enjoy!
In the end, I would like to ask for a favor from my readers: can you recommend a good way to DCA? By good, I mean cheap and simple. I will choose what to DCA into and transfer money in just before the DCA date. And the platform or tool will DCA for me.
I knew the "Regular savings plan" staff from the banks, but they are too expensive to me. The robo-advisor is still too expensive and I am not sure about their selection of portfolio. What I am looking for is essentially IB+the DCA functionality, with the same rate. Haha, maybe that does not exist.
The reason why I am asking is as below:
- I more and more inclined to go all "Passive" with DCA to further reduce my time and emotional investment and to eliminate the opportunity for me to try to time the market all together
- I started feeling it a drag manually updating our Net-Worth tracking sheet. In my post "Basics 02: The tracker tool I built and am using", introducing the tracker, I actually said I kind of enjoyed updating it. I did. But with the new work, free time is much harder to find and updating the tracker has lost its attractiveness.
Thank you!
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