Oct 2022 – Portfolio Transactions & Updates

Just as I expected, the market dropped its worst bomb yet this year with another thunderous low as it sends many investors’ portfolio hurting once again.

Mine was not spared either and it appeared this month might be the worst performing month for the portfolio as many of the companies suffered new lows of the year.

One consolation was that I was able to add on another small chunk of Tencent shares as this quickly becomes my regular DCA exercise this year with no futile at all…yet. But we’ll see how it performs once the turbulence is over.

China 20th National Congress Meeting

For those who were not following, China went ahead with its 20th National Congress Meeting this month which leads to the heavy sell-off after the meeting itself.

The main cause of concern surrounding the zero-Covid policy still lingers around whether this will impact the overall business and GDP growth for the nation as it continues to depend on domestic consumption and spending.

One other issue which leads to the sell-off was the theme surrounding common-prosperity once again as CCP doubles down its commitment on growing the middle-income segment in the near future.

This is a double-edge sword as it will impact growth in the short term as many of the larger companies contributing to the growth in the top segment will slow down, but the larger objective is to increase the middle income and hence the overall GDP per capita spending for the nation, so the mid to longer term impact will still be to increase GDP growth for the country.

China’s bear market story has over the years been more severe than the other nations due to its more draconian measures which does not suit many investors, but it will eventually recover, so investors just have to be patient with that.

Networth

The portfolio hits its lowest performance this year with this month closing at SGD 352,071.

I understand from the many friends I talked to that many people are feeling low and like shit seeing how their net worth quickly deteriorate this month after all the hard work they have done all years long.

All I can say is that is one of the characteristics of a bear market.

While the bull market makes people feel good, the bear market will eventually make people rich. Many people just don’t feel that yet right now, but it eventually will when it recovers. I own a lot more shares today of companies than the start of the year, but my portfolio is 30% down this year to date.

My goal is to continue adding each month into companies I believe in and use this opportunity to accumulate instead of running away from it.

You may feel good keeping your stash of cash handy by staying out of the market in these times but feeling safe has a price and that price is paying a premium over time when times are good again.

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