Let’s Be Cautious of this “Bull” Market

We have lift off! The rally in the past 2 weeks got me thinking – Are we out of the woods and into a new bull market with the economic stimulus package, or is this a bear trap?

As much as I am excited to see the gains back in the portfolio, I remain cautious about overcommitting to the stock market right now. As such, I intend to keep 25% of my assets in cash. The best course of action right now is to remain diversified – across geography (Singapore, Hong Kong, China, US) and sectors (REITs, banking, healthcare).

Adding on to the point of diversification, the experience with StashAway has been positive thus far. StashAway has automated part of my investment strategy to consistently deploy funds over time into a range of asset class.

In other news, I crossed the S$150,000 milestone! Thanks to the recent rally, I have hit one of my personal finance goals 6 months ahead of schedule. With a cash position of S$40,000, I am considering to gradually deploy S$5,000 each into VUSD and Keppel DC REIT to increase the percentage holdings to approximately 10%.

Let me know your investing strategy – Are you regularly putting aside money into the market, or are you sitting on the sidelines until the economy returns to normal?

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