I tend to keep my US stocks low profile. There are few personal reasons. Decided to do a first this time. Reason being my portfolio should have a better diversification tracking in management considering bulk of my shares are in SG Trust/Reits, Index and SG Bonds/PS.
Will be selective at first. Injected Facebook into my tracked holding and slowly expand if I am happy with the move. The complexity is they are traded in USD. So currency movement do affects my overall returns and risks.
One logic to consider is the exchange rate. My consideration is how I can compute them on paper appropriately into Singapore dollars when they stay in USD cash account. This means that if USD is to depreciate 10% within a year, my open US stock and cash will have -10% fluctuation in returns. As for closed US stock, if their cash is stays in USD cash, their real profit will have to be adjusted. I do not believe in paper loss.
Tracking Method consideration
- US Buy/Sell trade price.
- S$ translated Buy/Sell value will be dynamically updated.
- S$ Profit/Loss will be dynamically updated for open trades.
- Profit/Loss will be dynamically updated in S$ for closed trades unless I have them converted back to S$ then it will be locked.
- Available US$ cash will not be tracked. Neither will exchange cost for simplicity.
Hope this new chapter of my investment portfolio management proves wise and provide better excitement to my listless SG stocks. I am excited !
Cory
20180422
Finally, one of the "face" of USA holdings revealed haha.I am holding 68% in USA amd UK as well. talk about exchange rates risk! despite the risks, we are also entitled to currency gains :)
ReplyDeleteDouble edge sword. Let's see how it goes. :)
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