As expected, after capturing the financial status before Day One of the Reciprocal Tariff impact, the portfolio immediately turned negative on the first trading day. Changes made included rebalancing funds internally and eliminating non-core stocks. Portfolio snapshot
here.
Yesterday, the portfolio ended with a -2.9% YTD return, mainly due to exposure to the US market and the impact on banks. The US-traded BABA also dropped steeply, which likely signals that the Hong Kong market may follow with further selling. This could imply that Singapore banks will continue to be sold down due to regional ripple effects.
Historically, steep sell-offs tend to bottom out only after even safe assets are impacted—often because investors need to raise cash or seek safety. Hopefully, we won't reach that level, but it would indicate a more secure bottom if we do. Now, we watch to see how many countries align with the trend—likely most will, except perhaps the EU and China.
Day One Actions
Rebalanced portfolio with increased allocation to banks due to the sell-off, while REITs held up well.
Raised additional funds by selling more REIT shares.
Day Two Actions ( Opportunistic )
Dividends Expansion Plan
This step requires tapping into new funding sources. Often, even when we have the net worth, much of it is locked up in insurance, pension funds, living expenses, loan allocations, emergency reserves, etc. In my case, I've even pre-planned 5 years of funding. Coincidentally, this mirrors Suze Orman-style guidance—perhaps a reflection of a retirement mindset, where we no longer rely on active income.
I planned this 5-year runway around my loan repayments and compounding passive income, which helps balance out expenses. Everyone’s situation is different, but I’ve found 5 years to be a solid benchmark for myself.
Based on that, the funding I may free up is roughly 26% of my current equity investment value. I plan to break this into five tranches. Once fully deployed, I hope to increase my annual dividend by 50%, which would be a strong stretch for this funding.
We could end up in a situation of large capital losses, but significantly increased dividends through averaging down. Mentally, one needs to be ready for this. Of course, if we get a V-shaped recovery mid-way, averaging up will feel much better emotionally.
What's missing? A watchlist. I've been struggling with this, and it will now be my priority.
There’s no plan to further invest in the US market at this point; any growth there will come organically. There may be a rebalancing from TLT later.
For now, hold tight!
Cory Diary
2025-0405
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Disclaimer: The articles presented in this blog reflect personal opinions and are intended for informational and sharing purposes only. Not responsible of errors. Readers are advised to seek professional guidance when making financial decisions and should take full responsibility for their choices.
