A month has passed in the new year and today is already 1 Feb 2025.
Here is an update of my investment portfolios.
My SGX Income Portfolio value inches up to $387k from $377k. S-Reits and property stocks in the Portfolio remain sluggish as the Federal Reserve has indicated a more conservative approach for 2025, projecting only 2 rate cuts instead of the previously anticipated 4. Current high interest rate environment is expected to prolong and erode the bottom line and distributions of S-Reits while allowing local banks to stay resilient by sustaining high net interest margins and the market possesses great anticipation of higher dividends while we await their next round of results announcement.
My US/HK Growth Portfolio tanks to US$14.7k from US$21.3k mainly due to my exposure to NVIDIA through selling put options. Thanks to Deepseek's recent breakthough, shockwaves are sent through the US tech sector, causing significant volatility in US tech stocks, particularly NVIDIA. Selling put options involves giving someone the right to sell you shares of a stock at a specific price by a certain date. In exchange, you receive a premium. If the stock price stays above that price, you keep the premium. However, if the price falls below that price, you may be obligated to buy the shares, potentially at a loss. Unfortunately, NVIDIA's stock price experienced a sharp decline this week. This resulted in significant losses on my sold put options, as I was obligated to buy shares at a price higher than the current market value. This setback is a reminder of the risks involved in options trading. While selling put options can generate income, it can also lead to substantial losses if the stock price moves against you. Despite this setback, I remain confident in my long-term investment strategy. I believe that NVIDIA has the potential to rebound in the future, and I'm planning to take assignment of the NVIDIA shares or keep rolling over the options to delay the expiry date. This experience has reinforced the importance of diversification and risk management in investing. While I'm disappointed with the recent performance, I'm committed to learning from this experience and continuing to grow my portfolio over the long term.
My SRS Ultra Long-Term Portfolio value increases to $195k from $192k mainly due to the strengthening of Keppel DC Reit and OCBC share prices.
Portfolio Actions
1. Sold 3 put options of Nvidia with strike prices $120, $135 and $145 and expiry 16 May, 7 Feb and 14 Feb respectively.
Portfolio Dividends
1. Received $544,50 of dividends from SSB on 2 Jan.
2. Received $147.50 of dividends from SSB in SRS on 2 Jan.
SGX Income Portfolio
Portfolio Value = $378k
Moomoo
Tiger Broker
Syfe Trade
US$1.4k
SRS Ultra Long-Term Portfolio
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It's crucial to conduct your own research or consult with a qualified financial advisor before making any investment decisions.
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