I decided to sell my SPH shares and not wait for the outcome of the Cuscaden and Keppel bids. The prices of Cryptos, Alibaba, Disney, PayPal, ARKG and Dairy Farm had dipped below my last purchase prices and it was time to buy in. But my lack of cash even after receiving the salary income for this month meant that I had to raise capital from somewhere else. Given how the Cuscaden and Keppel bids had pushed up SPH’s price, I was fine to exit my SPH investment at a profit and allocate the share sale proceeds elsewhere. I don’t engage in capital rotation often because I usually maintain a larger cash balance on hand. But this has been depleted with the recent completion of my private property purchase and increased monthly investment plans.
It’s not my favourite investing approach because I risk exiting profit-making positions that could have given me bigger gains (e.g. Tesla) or loss-making positions that could turnaround in the future into profit-making ones (e.g. SPH). I’m choosing to capital rotate now because I don’t think SPH’s price is going to be much higher than where it is at currently. Hence, I’m not risking too much potential gains to take advantage of buying opportunities in Cryptos, Alibaba, Disney, PayPal, ARKG and Dairy Farm. I will only know in time whether this turns out to be a good or bad move.
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My next target for potential capital rotation is the STI ETF. I have built up a sizeable position in it from my monthly investment plans and manual purchases. It has gone up recently and should continue to gain as Singapore keeps opening up domestically and internationally. It can be quite range-bound so a good place to invest my spare cash in for distributions while holding for small capital gains. Eventually leading to potential capital rotation buying opportunities. I have to rely on this investing approach until my cash level recovers.
Speaking of which, I had to reduce my monthly investment plans into Robo-Advisors, ETFs and Cryptos from next month onwards. I miscalculated and the regular cash drain on my salary income is not sustainable given my frequent foray into various Cryptos, Stocks and ETFs buying opportunities. I’m still trying to find a balance between investing my salary income and having enough for expenses and emergencies on a monthly basis. I’m not used to having a smaller cash balance on hand so I have to adjust my investing strategies as well. Can’t be too quick with my averaging down due to limited firepower.
With expected lower expenses and slightly higher income on top of salary due to bonuses in the next few months, I’m hoping for an improved cash position over time. Until then, cash management has become a top priority for me and it will continue to be an area of focus for a while. In the meantime, I have been reading up and exploring the possibility of another income source outside of salary, bonus and investment. People keep talking about building an online income source and I’m trying to understand what skill set I can learn (or even have) to start one. Nobody is going to handhold or spoonfeed me so I’m going have to work this out myself.