It’s April. Rainy and hot. Birthday month. Busy month.
Of course it’s not your usual housework “spring cleaning”. Although I am still doing my share of the real housework.
What I meant is re-balancing my portfolio. With the recent stock market highs, I have taken the opportunity to pare down my legacy positions in SC marine, Singtel and SIA. I don’t expect them to do much better than the market going forward so I have reduced my market specific risks so to speak. I retain some small positions so I can continue to track their performance.
This allows me to diversify into general market ETFs which I feel is a better instrument to capture market returns. This rebalancing of my portfolio has allowed me to reach 33% allocation in said ETFs. I have continued to dollar average on a monthly basis, both through RSP and also Vickers. Nobody knows where the market is heading. Will we breach 4000 for the STI index? Unlikely it seems but … . What I know is I want to participate in the rally if it comes true. What if the market goes down or stays sideways? Well, with dollar averaging, I will still be in the market come what may. That’s the beauty. Simplicity.
With mathematical certainty and time, I will slowly but surely reach 50% allocation in said ETFs, thus completing a milestone in my investing journey.