I’m happy that Singapore is easing some of the Covid rules from Wed 10 Nov onwards. Mainly on allowing up to 5 fully vaccinated members of the same household to dine out at F&B establishments. It’s not a big step forward but I’m good with even a small step in the direction of further relaxation of the Covid rules. Feels like it has taken such a long time for us to get to this point. Maybe it is the mental fatigue taking its toll but the situation just feels more difficult and frustrating this time around. Even focusing on our daily routine to get through the week is proving tougher than usual as we are unable to significantly vary the activities that can be done together as a household or with our families and friends.
Anyway, the past few days of price rally in BTC, ETH and DFI have increased the value of my main cryptos position in Hodlnaut and Cake Defi. I was surprised because I didn’t think the price action would happen so soon and in such a short amount of time. For my other cryptos position in LINK, LUNA, DOT, SOL and MATIC on Crypto.com that is much smaller, I had only just started the regular purchases over the weekend and they are in gains as well. This reaffirms my belief that trading cryptos is not the way to go for me in the long run. I tried doing this the last time and got burnt by the previous bear market in the middle of this year.
It seems like consistently buying and holding cryptos that have long-term potential yields better results than trading these cryptos. My goal is to build up this asset class in my investment portfolio, just like what I did with ETFs initially before moving onto individual stocks. I’m not going to abandon the traditional financial markets of ETFs and stocks as I continue to maintain my weekly purchases in equities. At this time, 30% of my monthly Dollar-Cost Averaging (DCA) amount goes into cryptos, another 30% is for index ETFs and the remaining 40% goes into thematic ETFs. A previously passive DCA approach is gradually becoming more active as I seek higher returns even with my weekly regular purchases of financial assets.
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I’m not so brave to go all-in on cryptos as I’m still learning about them. I rely heavily on online research done by other people and their recommendations before deciding which ones to take a position in. Then taking even more time to choose how much and in what manner I should commit my capital. While I admit the potential returns from cryptos are far greater than ETFs and stocks if I can make the correct selections early on and hold through the volatility, it also means I have to deal with stomach-churning rollercoaster rides of emotions more often. I can see people getting excited about their gains from the cryptos bull market now and I have benefited from it as well. But is this euphoria the start of something even bigger or the beginning of something worse.
It’s important to manage my emotions in either a bull or bear market. Just like how I have been averaging down on Chinese tech stocks for a while now and still waiting patiently for the recovery to kick in. And continuing with my regular contributions to StashAway even though I know the KraneShares CSI China Internet ETF (KWEB) in the general investing portfolio is causing most of the underperformance compared to other robo-advisors. I’m counting on this underperformance now to drive higher returns in the future. I’m not going to stop buying into underperforming markets just because their returns are bad in the short to medium term.
Likewise, my pivot into US tech stocks and cryptos earlier in the year paid off with overperformance. But I’m not going to divert all of my cash funds there even though it’s possible that they can continue to go up and generate much higher returns than a recovery in the underperforming markets. FYI, I’m still buying the STI ETF every month even though it’s one of the most looked down upon investment action that can be taken by a financial blogger. I freely admit doing this because of its stability and I feel like betting on Singapore’s future and growth. I have no idea what is going to happen next. But I know I’m going to make good and bad calls along the way. And I just have to ride every bull or bear market with what I have learnt from the previous one.