Where to start, eh? It’s been both a life-changing and challenging month in March 2020.
We all know that I am referring to the ramp up of global infections of Coronavirus (COVID-19) and the effect on day-to-day life but the stock market too.
I wrote a post on Coronavirus and life in Malaysia last week, we’re another week on from this and day-to-day life hasn’t changed.
What has changed is the exponential growth in the number of cases of COVID-19 and that most of the world has followed suit and experiencing some form of lock-down.
This has inevitably had an effect on markets and like most of us, my investments have taken a hit, but not all of them.
So, let’s kick off with how my investments have been doing in March 2020.
Investment Portfolio Update
The swings in asset, commodity and digital prices last month have clearly caused some anxiety. I believed I was reasonably protected from severe volatility like we have seen, in some ways yes but in other ways no.
Gold price surges has reduced the losses I have incurred in equities, on paper at least.
Nevertheless, it’s not great (that’s an understatement) to see so many of your investments in the red. So, what has the damage of the last 30 days?
Overall, I am seeing my net worth was down around 10% from last month.
All things considered, it’s not that bad.
On the positive side, I still have a cash position and know that my family and I can ride out a few years should we need too. Many people are not so fortunate and it’s them that will feel the force of the crash in the economy felt today, and likely for a number of years more.
SaxoSelect Go Trading Account
My shares have taken a battering this month, and I am currently seeing a 24% drop in my share portfolio.
This hurts to see. Especially when faced with a wall of red in my broker account.
The reality is though that I don’t intend to sell any shares for the the mid to long-term, so the loss is only on paper at the moment.
More of a concern is the knock-on impact on dividends that will likely reduce over the coming months. Companies will most likely wish to hold more cash instead of paying them to share holders.
Although technically all REITS are obliged to disperse 90% of their profits in dividends we will see if this actually happens in the coming months.
In any case, my lifestyle is not dependent on the dividend income in the short to mid-term.
I was really surprised to see Bitcoin prices nose dive last month. I believed, clearly wrongly, that Bitcoin would be a hedge against the market crashing!
That worked out, eh?
What surprised a few of my friends (except Diggy of course) is that I ended up buying some more Bitcoin when prices went down to around $5k.
Whilst I don’t have a massive cryptocurrency holding, it’s enough to hopefully have a good upside as and when the prices “go to the moon”.
Although the prices have gone up 20%+ in the recent weeks, I am still overall in the red with my cryptocurrency holding.
Art of FX – Steady Growth
I received a newsletter from the team at Art of FX outlining how well their trading has been going since the COVID-19 outbreak. This is due to the volatility in Forex prices in a number of currency pairs.
The last two months have seen double the returns each month compared to last year, so around 1.5-2% per month.
In may this year I will have had my account for 2 years, with what’s looking to be a 32%+ total return. Not too shabby!
This year could turn out better too, let’s hope so.
I interviewed Teng Su from Art of FX a few months after investing – you can find out his story and their trading strategy there.
Gold – On the up
Gold has been a great investment for me. The market volatility has been good for gold and I am seeing a 40% profit so far, on paper of course as haven’t sold any.
With many governments printing more money, then it’s difficult not to see a problem with inflation once the drama of coronavirus stabilises.
In this case, gold has the real potential to move to epic highs.
Are we going to see gold at levels of 8,000 USD – like James Rickards suggests in the The New Case for Gold?
Not that I have any golden crystal ball, but I believe the price will be over $2,000 this year.
What’s interesting is that the price I am seeing for my gold stored in BullionStar is fetching a premium of 10-15% at the moment.
This is because physical gold is in more demand at the moment as there are reports that gold deposits are not quite what they seem.
Goal Progress for March 2020
Staying at home as mean’t that I have starting to snack a little more. This got me a little concerned about coming out the overside with an even fatter belly.
So, last week I followed a 7-day OMAD protocol for the first time. It went well and I managed to stick to it 100%, and even visibly reduced the belly and reduced overall weight by 2 kg.
I am following a mixture of the OMAD and 18/6 intermittent fasting protocol now as this seems to work well for me.
Apart from watching my food intake and not over-consuming I am spending time on my business and looking to learn more about paid traffic. In particular Facebook advertising.
This is something I have been saying for MANY years now, so now is the opportunity to look at this.
March 2020 Summary
Life has been severely disrupted with the start of the lock-down on the 18th March. The week before I wasn’t feeling well and so been mostly at home during March.
A lot of mental energy has been wasted on following the developments of COVID-19 last month. Some of this is to be expected, but checking the news and Facebook feeds every few hours is really a waste of time.
I have been guilty of this. But more so checking my investments!
My super greens supplement business has been going from strength to strength, seeing a 25% uplift in turnover during March. The reason is likely to customers wanting to boost their immune system from all the veggie goodness in the product.
I have even had a few friends reach out to me asking for some tubs.
The last week I have been doing some research and development of other product ideas that I have that can be offered alongside my greens powder. I am getting prices to see if this works out.
I interviewed Adam Palmeter a few weeks back. Without wishing to sound like I have a bromance with the guy, I have to say he is a VERY TALENTED guy. Painter, stand-up comedian and now author of children’s books. I suggest checking out Adam Palmeter’s interview here.
I am planning to redo the WordPress theme for LifeHacker Guy this month to make it faster and look much cleaner. So, if you pop back in a few weeks, expect what I hope to have, a better looking and functioning site.
So, I wish everyone all the best best in these trying times. Be safe and importantly, stay inside!