Two years ago, when I was exploring with the idea of opportunity fund, I came out with a guide for its deployment.
If my portfolio is down as compared to end of last year’s value AND the drop is triggered by market correction/crash, then I will
- start to deploy the first 30% when portfolio is 5% down
- deploy the next 30% (60%) when portfolio is 10% down
- deploy the next 20% (80%) when portfolio is 15% down
- deploy the last 20% (100%) when portfolio is 20% down
- hold and wait for recovery when portfolio continues to drop.
With the market reeling from the Covid-19 widen spread, my portfolio reverses its gain of near 4% and is now down by 4.8% for the year. Excludes dividend received, the loss is definitely beyond the 5% threshold. As such, I decided to execute my plan yesterday.
What was checked out?
On the local front, I added four counters to beef up the dividend – Valuetronics ($0.645), Mapletree Commercial Trust ($2.12), Ascendas REIT ($3.08) and DBS ($24.37). I am familiar with the first two counters, hence have no qualm adding more. AReit and DBS are recent buys for dividend, so taking this opportunity to reduce my average price.
I was contemplating what I wanted to add on US market two days ago when I saw the following post by wellhandy at Investing Note.
Indeed, a no brainer to buy after the market corrected. A bit of SPDR S&P ETF (US$294) is added to my portfolio. I have also decided to add on two businesses that I like – Intuitive Surgical (US$537) and Shopify (US$458). Still expensive even after the correction but relatively cheaper than the past few weeks’ valuation.
Will the market drop further next week?
I have absolutely no idea! And I am not quite bothered by it since it’s beyond my control. I will just continue with my daily life and when the next trigger comes (10% drop), the shopping cart will definitely be out again.