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Portfolio Update – May 2022

uehiFinance

Portfolio Summary

Here is a summary of my portfolio at the top level:

  • Raiz Aggressive Portfolio – $8,871.29
  • VDHG (using VPI platfom) – $42,800.00
  • IVV (Selfwealth) – $577.86
  • SYI (Selfwealth) – $2,125.68
  • VISM (Selfwealth) – $501.3
  • A200 (Selfwealth) – $1,981.76
  • Cryptocurrency – $25,705
A breakdown of my current asset allocation:
  • Australian Shares – 29.52%
  • Global Shares – 26.60%
  • Bonds – 5.92%
  • Fixed Income Assets – 0.32%
  • Cryptocurrency – 31.13%

Portfolio Total – $82,562.89. An decrease of 8.33% compared to last month value ($90,068.58).

This month’s saving rate is about 57.57%. This is the result of the latency of the calculation before. The expense for this month is for 7 weeks. It would make the calculation easier from now on since the new payment starts between 6th to 9th. The reason for the new credit card is that I want to do an experiment with the Reward Points from credit card spending. Even though it might not be that much (as I see how many points are needed to claim the cheapest thing in the store), it’s still worth something compared to my old credit card, which does not provide any Reward Points.

My current income is still relatively like last month due to more work from my freelance work. However, I can feel the stress placed on my body in recent weeks. I should take care of myself more and reduce the amount of work I accept from the freelance. One positive thing is that I now have a junior developer to work with, even though there is a gap in experience, this can be resolved by slowly introducing different tasks and proper guidance. I am now in charge of managing and maintaining the work. Maybe that is the reason I feel a lot more stress lately. Nevertheless, I am learning a lot more now on this journey. Besides work, the contributions made for this month are as planned. I realize it is harder to keep myself calm during this time of the economy, but with discipline and determination, hopefully, I can stop worrying much more when thinking about the future. Due to the heavy workload, the number of times that I track my portfolio or look at charts has been reduced significantly. I was surprised when looking at contributions yesterday. This is quite good, and I can focus more on work. What a surprise! 

Note: A reminder is that this number is still an estimation only as my crypto portfolio consists of different assets, including NFTs, staking, DeFi. I have to use different tools to keep track of and maintain the value of assets to finalize the final value of my portfolio. NFT is hard to estimate because of price fluctuation in the crypto market. However, estimation is still good enough in this case.

Porfolio Analysis

I am not sure if I am lucky or unlucky to see a bear market. I feel lucky because this is an opportunity of a lifetime. We have seen the bull run going for a decade now. It’s all over now. This is when we gonna pay back everything that we have gained in the last couple of years. I can see this is a great time to accumulate more but at the same time, that gut-wrenching feeling in the stomach when seeing my portfolio, especially my crypto portfolio. My portfolio this month has decreased by about 8.33%. The number is not that big but when considering that my crypto portfolio has dropped around $10,866.00, which is a significant amount. If I compare to the principal amount, the portfolio is now down 50%.

Last month was the beginning of the crash. The NASDAQ is still finding the bottom. The S&P 500 did go to the bear market level but quickly bounced back. I have no idea how low the market can dip. The fear and greed index is in extreme fear now. This month has so many events happening that it did make me worry about the future of the market. We see companies releasing their earnings reports, and most of them don’t perform well with the expectation of a slow growth in the future. Inflation has made everything so expensive, and everyone is saving more than spending. The stock market now looks no different than the crypto market, where a sudden 40% drop is just another Tuesday. Events after events creates fear in investors. One event I consider significant this month:

The crash of UST and LUNA – Bitcoin reached the lowest this year at $24,500 on 12/05. The sell-off started the crash month marked the beginning of the crash of UST and LUNA. Who can believe that a top coin would crash 99.99% of its value? I was at work on that day and oh boy, it was interesting and terrifying at the same time. Every time I checked the chart, it kept dropping hard. A coin created by hype and FOMO from people, and the stupidity from the founder has left a stain in the crypto market. We now know more about an algorithmic stable coin is a risky thing and people should be worrying about the high APY return. There are articles showing signs of a disaster unless we are still in a bull market. Everything is still fine until the fun is over, and the bear is back. This is also a reason why Bitcoin is less risky compared to other altcoins. And because I have most of my portfolio in altcoins, so it’s been a brutal month for crypto.

Other events such as Elon Musk buying Twitter deal, Berkshire Hathaway annual meeting, and Bitcoin ETFs in Australia. Mr. Warren Buffet is now on a buying spree, scooping different stocks in billions. The deal to buy Twitter from Mr.Mush shows another thing that I don’t know about. When browsing Reddit, I see comments saying about buying Twitter shares now since the price in the deal is more than the current price. However, we have to include the fact that there is a risk when the deal does not go through, so it is still risky to buy.

This may happen to be a great time for me as an investor, to learn about the economy and how the market reacts to news in a bear market. I have seen different movies about the crash in 2008 – The Big Short and Margin Call, and always wondered if I ever experience the same thing. Well, one thing is for sure, my portfolio is down about 50% now, I can say that it has been quite a month for me. The economy is slowing down and inflation seems to reach its peak. No one knows what will be waiting for in the future.

Some of the articles I use for the information above:

Here is a list of videos that I found useful for this month:

Passive Income

This month has produced about 15.264 ADA. SOL and ONT rewards are small. BAT reward is reduced significantly, but this is due to a problem from Brave so hopefully this is fixed next month . Staking reward is estimated to be around 0.01245 AXS/day, so roughly around 0.3486 AXS/month. It has not been a good month for Bitcoin, and altcoin is still bleeding, No point of converting SLP anymore in the current bear market.  No dividend payment.

To sum up:

  • ADA Reward – 15.264 ADA.
  • SOL and ONT rewards – the reward is not large enough to consider.
  • Brave Reward – 0.25 BAT.
  • AXS Staking – around 0.01245 AXS per day atm, therfore this month reward is 0.3486 AXS.
  • SLP farming – None due to low price to swap.
  • No dividend payout.

What I have learnt

Keyword for this month – Scary

I have spent most of my time this month working. In crypto, we have “Play-To-Earn”, and “Move-To-Earn” so I would describe “Work-To-Earn” as what I am doing now (as a joke). I have been given more tasks at work and learned quite a lot from those tasks. I gain a bit of confidence when working with different people now, which is a huge improvement since I usually have trouble communicating with strangers. It’s been a busy month and I did not have any time to listen to podcasts.

An expensive lesson from this bear market – I now know why Bitcoin is the king and you must have a big portion of your portfolio in Bitcoin. I am down around 65-70% on my crypto portfolio because more than 90% of my assets are in altcoins, and when a bear market hits, altcoins are now down more than 70%. I understand why some of the YouTubers that I watch (Ben Cowen, ThuanCapital) have given out much advice before about why Bitcoin leads the crypto market. Only when you are in a bear market, you can see the big picture. For that reason, I have changed my current strategy to DCA Bitcoin only at this time. I sometimes feel that I have lost it all in altcoins, but we are still uncertain yet about the future. Maybe it will come back or maybe not, just like LUNA and UST. But one thing for sure, the lesson I learn today will make me a better investor in the future.

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