Portfolio Updates

Portfolio Update December 2023 – Ending the Year on a Portfolio High

Calvin Lo

What a fantastic Santa rally to end 2023 on a high. The portfolio likewise benefited, hitting all-time highs as well which made the holidays even more joyous. With markets close to all-time highs, I took the opportunity to rebalance the portfolio. As bond yields start to fall, I’ll also need to consider deploying more cash into the markets soon.

Last month, Apple (AAPL) was the worst performing big tech name, largely due to growing concerns over iPhone demand. The other big tech with larger weight in our portfolio, Microsoft (MSFT), didn’t fare much better either.

S&P 500 1 month performance as at 7 Jan 2024

For the year 2023, the Magnificent 7 or Big Tech or whatever you want to call them, performed super well way above market expectations. But be careful, they bigger they are, the harder they fall.

S&P 500 1 year performance as at 7 Jan 2024

The market seems to have gotten a little ahead of itself (again) in terms of rate cut expectations. In all likelihood, the market is too optimistic and might have to temper expectations as we go further into 2024.

On the fixed income front, SSB yields have fallen off a cliff, falling to a mere 2.81% average 10Y yield for the Feb 2024 issue. T-bill yields have fallen to 3.74% (last 6-month T-bill auction on 4 Jan 2024), although has been pretty resilient. Robo-advisors StashAway and Syfe are still maintaining the 3.8% for their respectively Guaranteed products (take note the different tenures).

Check out my Fixed Income Tracker and SSB tracker for the latest updates for fixed income and SSB.

See my Portfolio page for more details on my portfolio value, holdings, and strategy.

Last month, I’ve also written about the recovery in S-REITs and my considerations in shopping for a property in Johor Bahru.

I’ve also just posted my 2023 year in review, so check that out if you haven’t.

Read: 2023 Year in Review – Portfolio Grew 74% to $306K from $176K

Since it’s the start of 2024, I’ve set a few portfolio goals for the year:

  • Transfer more invested capital from US ETFs to UCITS ETFs, e.g. VT to VWRD
  • Reduce number of holdings (currently at 21, excluding odd lots)
  • Convert individual stocks to sector ETFs where possible, e.g. Nvidia to SMH

Family Portfolio

  • Value as at end Dec: S$246K
  • Dec performance: +3.3% vs S&P 500 +3.8% vs Nasdaq 100 +5.2%
  • 2023 performance: +25.6% vs S&P 500 +24.7% vs Nasdaq 100 +54.9%
  • All-time performance (since Aug 2016): +7.0% (+9.1% including dividends)
  • Dec dividends: S$423 (+23% yoy)
  • 2023 dividends: S$1,809 (+44% yoy)
  • Bought: VT, QQQ, ARKK, SGX:HST, LSE:VWRD
  • Sold: TSLA, PLTR, VNQ, QQQ
Family Portfolio as at 7 Jan 2024

A few more trades than usual last month, due to rebalancing. Trimmed some QQQ and VNQ from core ETFs and some Tesla (TSLA) and Palantir (PLTR) from individual stocks after a pretty good year for them. Made a small mistake and sold off too much QQQ, but decided to buy back in VWRD instead since I felt QQQ might be overstretched thanks to the Magnificent 7.

The usual RSP into ETFs with FSMOne continues uninterrupted. Might be strange to still be DCA-ing into QQQ after I just trimmed a chunk, but I view the RSP and rebalancing as separate exercises. Since FSMOne is still waiving their processing fees for RSP, I didn’t feel the pinch. I’m still on the accumulation phase, just that I thought QQQ was the best candidate to trim among our core ETFs.

Read also: Automating Your Investments With FSMOne

In terms of cash allocation, this portfolio is currently sitting at 14% cash, with a target of 15%. So, I’m still due for some sales but may not be necessary if stocks fall further like they have in the first week of 2024. I have a cash allocation strategy which is difficult to explain within this post. Maybe an idea for a video update.

No additional lump sum added to Syfe portfolios last month, just the usual DCA. Syfe managed portfolios is currently valued at $17.4k, up from $16.4k in Nov, mainly due to sharp recovery in REIT+ and rally in both stocks and bonds.

No change to regular monthly contributions of $200 into each of the Core Equity100 and REIT+ portfolios. Around $2.6k more to go to qualify for Black Tier ($20k) which comes with a lower 0.5% annual management fee vs the current Blue Tier rate of 0.65% before GST.

Read my reviews of Syfe Income+, Syfe REIT+, and Syfe Core Equity100.

One notable recent update from Syfe is that wet 16 Jan 2024, REIT+ investors can opt for dividend payouts regardless of membership tier (previously was limited to Black tier and above). However,

Email update from Syfe

Personal Portfolio

  • Value as at end Dec: S$60.6K
  • Dec performance: flat
  • 2023 performance: +50.4%
  • All-time performance (since July 2020): +5.5%
  • Bought: DIS, PLTR
  • Sold: TSLA
Personal Portfolio as at 7 Jan 2024

Performance was flat, with the rise in TSLA offset by the drop in PLTR. Disney (DIS) was also slightly down for the month. I’m turning cautious on tech stocks after a huge year-end rally, and holding 40+% in cash to take advantage of opportunities should the market correct.

I’ll probably be in a bit of a holding pattern until TSLA or PLTR falls back to their 200 day MA (TSLA $230, PLTR $14.80). As for DIS, I’ll probably just hold what I have. No conviction to add just yet. Financials look decent for now. If streaming continues to decline, I might just let go. So far, DIS is back to dependence on their theme parks business, which although is great, is not enough for me.

Read my investment thesis on TSLA here.

How did your portfolio perform in December/2023 and what are your plans for January/2024?

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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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