May 2021 Report - I am glad I did not go Full Crypto
Ferry is a retail investor, March 2020 everything crash, there was no safe haven, Stocks crash, Bonds crash, Gold crash, Crypto Crash. He listened to the fear and doomsday scenario being spread around the news, He did not dare to invest any money in anything, and decide to liquidate his position and hold cash.
Mid 2020 Stocks started rallying on possible V shape recovery. Ferry wanted to invest but there were talks of market going for double bottom, After all there is now a full blown pandemic worldwide and lock down everywhere, so he decided to wait. How could the market be rallying when everything has gone to shits? It's going to crash again! He watches a lot of Youtube videos of crash prediction, and he is convinced
August 2020, S&P 500 index are hitting a new All time high, Again Ferry wanted to invest, but the US election is coming! so many uncertainty! What if the market crash again? So He decided to wait
End 2020 S&P 500 ended up closing positive for the year despite experiencing a 30%+ drop due to Covid-19. Ferry now see his friends and many Youtube investment 'gurus' making 40-80% gains for 2020. Ferry decide to FOMO in, buying all the hot & sexy stocks that everyone was talking about, ARK ETF, Zoom, Netflix, Tesla, Square, etc. etc.
Jan 2021 The rally continues, and Ferry is happy, everyone is making money, even a blind monkey could've made money. Feb 2021- March 2021, Bloodbath on wall street, speculative growth stock that went stonks were the worst hit dropping 30%-50% from their peak. His portfolio consist of all these hot & sexy stocks, so he is screwed.
March 2021, Ferry start noticing everyone talking about cryptocurrency and making tons of money in cryptocurrency, there were news of Doge-coin millionare, Bitcoin breaking 40k then 50k, Ethereum too were repeatedly hitting ATH. So He liquidate his stocks at a loss and FOMO into the cryptocurrency market.
April 2021, Elon Musk is GOD, crypto continues going Stonks, everyone is making money.
May 2021 - Here comes the correction, thanks to Mr. Elon. Now Cryptocurrency has dropped around 30%-50% from its peak, and again His Portfolio is now in the red. Now What?
Fortunately the above is a work of fiction, Ferry not so stupid. Ferry went and invest in himself, paid good money to learn from expert and spent countless hours improving his financial literacy. But the above is what happened to quite a few 'investors'. I sincerely hope you readers are not one of them. You work hard for your money, get your money to work hard for you by making sure you invest smart.
May 2021 US market
After briefly hitting a new All time High in May, the market finally took a breather and goes through a correction, Going back to its MA50 support before bouncing back up again. However, we seem to be hitting resistance with the index hovering around 4200. Will it break or will it goes back down? I have to go consult my crystal ball with 50% accuracy. S&P500 ended up somewhat flat with slight gain of +0.55%.
This month my favourite blue chips MAGAF is not doing very well, unfortunately it did not drop enough into any good buy level, so I did not do much shopping this month.
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| Finviz 30 days heat map as of 3rd June |
May 2021 Performance
May was horrible for me, experienced a sharp drawdown of -11.5%, but fortunately managed to bounced back strongly as market rebounds, but ended up -1% compared to S&P500. The culprit for the sharp drawdown? My Options play which again, like back in March was in almost full position. But options also ended up being the one that pushes me back up by end month.
Value Stocks (-1.32% vs +0.55%)
Options (+11.69% & -5.77% vs +0.55%)
Options were a roller-coaster this month dipping to around -30% at one point, the big difference between the 2 options account is due to Options 2 being focused on Diagonal Spread positions which rallied strongly by end month. The volatility is probably due to the relatively small account size, so the position sizing is all weird.
Anyway about 90% of my options play are now not my own creation. I am subscribed to my options teacher, so I get notified of his trades, then I just copy. Smart right! Leverage on expert's knowledge since I barely have time to check market when putting the kids to sleep. But of course does not mean you should copy blindly, it is important to understand the logic and how option works. (OPTIONS are super risky, make sure you clearly understand the concept before attempting them)
2021 YTD Performance
Overall Portfolio YTD return is still holding reasonably well at +15.8%, vs S&P500 +11.9%. Options has now become a crucial part of my portfolio, helping to boost returns. I hope to maintain this performance as I began ramping up my investing amounts in the coming months.
Wife YTD Performance
Wife's portfolio is doing ok this month, It is still barely above the promised return of 1% a month but it is underperforming quite a bit compared to the index.
That's it for May 2021, and this is the part where I remind you again to have some form of investment to make sure you can retire and not be a burden to your children.
Total newbie and don't know where to start? Read through all my post and sieve through all my random rambling to try and learn something useful. Good luck!
Just kidding, there are tons of guides and how to of investing for beginner, but to me the best and simplest one would be -> thewokesalaryman and it's free so check them out!
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| Click here if you want to start learning for free. |
If any of you readers still think parking your money in the Banks and earning less than 4% interest is good investment, Then...
Remember Ferry is not a licenced financial advisor , so do you your own due diligence! Provided data are purely based on historical records and may not guarantee future results. Follow me at your own Risk!
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