The IA Portfolio Update: 42.9% Cash on hand

With 42.9% cash of my investment portfolio warming up and ready to strike at the trough of the economic waves, so what? I dont even know when it’s to happen..

Hello all,

It has been a long time since I’ve updated my portfolio as I’m vested for the long term. As an NSF with age of 20, I surely do not have piles of investment capital so commission costs are obviously the killers. Thus ever since the wind up of BCIP’s no minimum commission promotion, I’ve stopped chipping into any stocks and started allocating my savings into the Investable Cash section.

This gradually led to an unhealthy level of 42.9% Cash on hand as of current.. With these cash of my investment portfolio warming up and ready to strike at the trough of the economic waves, so what? I dont even know when it’s to happen.. Haha

Either way, I believe my overall investment performance on the four stocks did not fail me. Despite SPH losing some stepping, I am still trusting my ownership of the company for obvious reasons (leveraging Singapore Government’s power and their shift towards online media). The all-time top performing stock (including unrealised gain) that I’m holding will be Singtel (Z74) two weeks ago, giving me a good 11% return on cost merely holding it only for 7 months.

Stock_Portfolio_090315

As for my OANDA FX Account, I’ve just closed off three trades last week, adding to my monthly side income.
A good 25% gain from my $700 account after spotting a high probability arbitrage set-up for months, coupled with some market psychology levels and technical analysis confirmations. It sure doesn’t come often but as long as you’re patient, currency trading isn’t all that scary and fast-paced. I trade weekly candles.

Past_Week_FX_Trades_090315

I’m doing the right thing at this moment stuffing cash under my bed while I wait?
Well, I’m not sure of the answer myself.. But I’m currently considering future investing via DBS Vickers and opened it before the end of this year when I hit legal 21 heh. 😉

Regards,
The Independent Abecedarian

10 thoughts on “The IA Portfolio Update: 42.9% Cash on hand

  1. Hi TIA

    That’s a good level of cash allocation percentage there.

    Hold it tight, it’s gonna be bumpy 🙂

    1. Hello B,

      Really? Is it a good level for the situation currently? I wasn’t sure at first.. Haha
      I can’t wait for it to go bumpy! Gotta get greedy when everyone’s a afraid of the bumps, ain’t it 😉

      Regards,
      The Independent Abecedarian

  2. Hi TIA,

    Thanks for sharing. I wouldn’t consider 42.9% cash as unhealthy. A few bloggers including myself are also holding on to as much cash as you. Rather than just parking in a savings account, you can deposit them into a accounts with a higher interest rate. Part of my cash is in a USD currency account to take advantage of the high US dollar.

    1. Hello Derek,

      That is really reassuring and good to know.. I’d thought I was doing something wrong at one moment there.
      I saw your post regarding that, will look into it further, thanks!
      Actually I’m already slotting my cash on hand into a higher savings rate at 4 times the usual savings account through a Frank by OCBC. But definitely still losing to inflation heh

      The IA

  3. Hi TIA,
    Really impressed by your knowledge and experience despite your age! I’m also an NSF and 21 this year but you’re already leaps and bounds above many people! Would love to be friends with you. 🙂

    1. Hi Aloy,

      Thank you, your words are too kind. I browsed through your blog a little this noon and I respect the strong passion you have in you to succeed. Not everyone can do what you did, so keep it up man!
      It’d be my honor to make friends with such great dreams. In fact, I’m actively looking for such big dreamers 🙂
      Send me your contact via contact page: http://www.theindependentabecedarian.com/contact/
      Will get back to ya, promise!

      Till the top,
      The Independent Abecedarian

    1. Hello RetailTrader,

      You spoke the truth there! Cash is definitely a position. Storing cash might be a tactical move too (I hope hehe)
      Thanks for the encouragement. I am currently having mixed feelings with Singapore market now. It will definitely rally more, but how much and how long I am not sure.
      But I foresee a great retracement/recession will be coming either this or next year, from my technical analysis of Singapore economy as a whole.. Hence my slow retreat into my little hole for the time being. 🙂

      The IA

    1. Howdy Richard!

      Yes surely! War chest is there for a reason (let’s ask AK one day together hahaha)
      Opportunities are always around the corner they say, but is it for investment too? (something to think about and crack my skull..)
      Let’s hang on to the current greedy market with pinch of salt, then unload when fear comes along muahaha 😉

      The IA

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