Portfolio Updates

Portfolio Update August 2021 – Adding Growth Stocks on Dips

Calvin Lo

August was a nice positive month for all portfolios. There was also a nice opportunity to add to growth stocks during the dip around mid-month, though it was very short-lived. The market brushed it off and continued on its steady march upwards. The crypto rally also helped with returns.

Stocks got a shot in the arm from the Fed at the end of the month, with J. Powell indicating a slightly more dovish stance towards rate hikes. It appears that although the Fed intends to taper bond purchases, they don’t seem to be in a rush to hike interest rates just yet. Maybe the Delta variant had a part to play in their decision.

The regulatory drama in China continues to grab headlines. The Chinese government’s relentless crackdown on tech companies have resulted in Chinese stocks down 30-40% since its peak. Investors though seem to be split on China. Some have totally given up on China and are staying away from the uncertainty, while others are starting to see attractive value and are dipping their toes back in. The polarization seems to be more pronounced between Western and Asian investors.

Personally, I think the outlook for US stocks are still bright so I’m still accumulating index funds on dips. Also added some growth stocks, details below. US growth stocks seems to be in consolidation mode with some forming a wedge pattern, which might be a good opportunity to accumulate (not financial advice). Chinese stocks bounced towards the end of the month, benefitting from a slight break from fresh regulatory actions and bargain-hunting from institutions. Barring any further major and unexpected moves from China in September, I think Chinese stocks especially tech should continue to see some relief.

See my portfolio holdings and strategy on my Portfolio page.

Family Portfolio

  • August performance: +2.6% vs SPX +3.1% vs NDX +4.3%
  • YTD performance: +2.3% vs SPX +22.3% vs NDX +20.6%
  • All-time performance (since Aug 2016): +12.6% (+15.2% including dividends)
  • August dividends: S$58 (-82% yoy)
  • Bought: VT, QQQ, TSLA, NVDA, SGX:HST
  • Sold: None

Averaged into VT and QQQ again this month during the mid-month dip – seems like deja vu. Let’s see if this trend of dipping mid-month continues in September. During market weakness, I also took the opportunity to add to Tesla (TSLA) and Nvidia (NVDA). I was blown away from Tesla AI Day (if you’ve not watched it, here’s the link) and immediately added to my position. Nvidia’s earnings continue to impress so I’m building back my position after I took some profits pre-split back in June. I’m slowly but steadily running down my cash position, now at 18%.

Dividends have dropped dramatically YOY because I’ve sold off most of my US and SG dividend stocks in favor of US growth stocks and index funds over the past year. We are not at a life stage where we need the income from dividends yet so I’m heavily skewing the portfolio towards capital appreciation instead.

I still feel that this portfolio still has too many holdings (18 individual US stocks and 6 individual SG stocks/REITs) because I feel like I’m struggling to keep up-to-date with all of them. So, I’m looking long and hard at each holding to decide whether I should cut them. This will purely be a pruning exercise, since I’m still bullish on most of my holdings. One tip I came across from a YouTuber (can’t remember exactly who now), was to rank the individual stocks by conviction and get rid of the lowest ones, so I shall try that. At the moment, I’m scrutinizing Activision Blizzard (ATVI) and Mastercard (MA) for possible divestment.

US stocks are still outperforming everything else. So this portfolio is underperforming benchmarks because of positions in Chinese tech, Singapore stocks/REITs, bonds and gold. I’m slowly but steadily scaling up positions in index funds and US growth so hopefully that will help set this portfolio on better footing to marginally outperform benchmarks eventually.

Personal Portfolio

  • August performance: +7.8%
  • YTD performance: -1.0%
  • All-time performance (since July 2020): +24.8%
  • August dividends: None
  • Bought: None
  • Sold: None

Glad I didn’t sell any Tesla (TSLA) or Palantir (PLTR) the month prior because both rebounded to help power a strong August performance. After Tesla AI Day and Palantir recent earnings results, I’m no longer inclined to take profits and redirect to other investments, at least until I can find a worthy replacement. Will just continue to hold, including my small stakes in SoFi (SOFI) and Hyllion (HYLN).

Social Portfolio

  • August performance: +2.3%
  • YTD performance: +1.7%
  • Check out my eToro account for trade activity: https://etoro.tw/3rLL9tX

Gains were almost exclusively from taking profits in crypto after a huge rally. Only other gain locked in as from AMD. Stop losses were triggered on Chinese stocks Tencent (0700.HK) and Nio (NIO), and Lemonade (LMND).

I’m sitting on >50% cash in this account right now because I’ve decided to concentrate my trading around only a handful of positions, ideally <10. With 2 young kids at home, I really don’t have time to be actively trading and looking at charts more than once a week at most.

What have you been buying or selling in August? Would love to hear from you.

Disclaimer: This is not financial advice. I am not professional financial advisor nor do I work in the finance industry. Anything I write here is purely my personal opinion. Please do your own research and due diligence before investing into anything. All investments come with associated risks. Best to consult a financial advisor if you’re still unsure.

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