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2023 Portfolio & Dividend Update

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  A Rollercoaster Ride I know, Uncle was really late to have this 2023 performance review as we are already in February 2024 😊 . Pai-seh, I was busy with a family trip to Korea followed by a Cruise Trip onboard RCL. Also, during the school holidays, we went a few times short trips to Malaysia and back to my hometown. My younger daughter got her O Level result followed by searching and applying for JC. That’s why I have been delaying this update and dragging my feet to write this blog post. I think most of us had the same feeling that 2023 was a challenging yet dynamic period for investors, marked by a series of unpredictable events that significantly affected our returns. I have seen my portfolio up by more than 10% in the early part of the year and it dropped by more than -8 % at one time and recovered slightly better at the end of the year with +2.3% (including dividend). As an investor, navigating through such a volatile market requires adaptability, patience, resilience, and

Beauty ( Value ) Is In The Eye Of Beholder

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  As a value investor, we focus on investing in stocks or any other assets that we believe are undervalued relative to their intrinsic or fundamental value. This approach to investing is often associated with the principles of gurus like Benjamin Graham and Warren Buffett . We often use fundamental analysis with a margin of safety, looking at ratios or figures like PE, PB, EPS Growth, Cash flow, etc . We emphasize investing in the long term, avoiding speculation, and having a diversified portfolio. We also understand that value investing requires patience and discipline. Investors may need to wait for the market to recognize the true value of their investments, which can take time, and recognize the ultimate force of “ reversion to mean”. It's important to note that value investing is a well-established investment strategy, but it is not without risks. It can take time for undervalued assets to appreciate and realize their value, and there is always the possibility that the mark

Portfolio & Dividend Update : 3rd Qtr 2023

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  Higher For Longer   The Federal Reserve held interest rates steady in the recent FOMC meeting, while also indicating it still expects one more hike before the end of the year and fewer cuts than previously indicated next year. In addition to holding rates at relatively high levels, the Fed is continuing to reduce its bond holdings through the so-called QT , a process that has cut the central bank balance sheet by some $815 billion since June 2022 . The Fed is allowing up to $95 billion in proceeds from maturing bonds to roll off each month, rather than reinvesting them. The “ dot plot ” chart from the latest FOMC meeting showed a much higher and longer rate till 2026 and this has “spooked” the market, causing some reactions and pulling down of market indexes last week. “Chair Powell and the Fed sent an unambiguously hawkish higher-for-longer message at today’s FOMC meeting,” wrote Citigroup economist Andrew Hollenhorst. “The Fed is projecting inflation to steadily cool, while
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