FTSE STI ended the year 2023 at 3,240.27 compared to 3,251.32 a year ago, down 11.05 points or 0.34%. Pretty much a flat performance for the year. If not for a late upsurge in December, the loss would have been bigger. Individually, a review of the various stock portfolio in holding as followed.
Investment Portfolio
| 2023 | 2022 | Variant | |
|---|---|---|---|
| Non-Strategic (Income) Unrealized Gain/Loss | +99.17% | +82.49% | +20.22% |
| Strategic Unrealized Gain/Loss | +7.94% | +9.75% | -18.56% |
| Crypto Unrealized Gain/Loss | +16.06% | +2.84% | +465.49% |
| Portfolio Unrealized Gain/Loss | +20.11% | +15.53% | +29.49% |
| Realized Gain/Loss | +18.37% | +18.37% | 0% |
| Dividend Return | +71.91% | +70.16% | +2.49% |
| Cash Holding | +83.37% | +83.37% | 0% |
| Portfolio | +110.39% | +104.05% | +6.09% |
| STI | 3240.27 | 3251.32 | -0.34% |
| Annualized (w/o dividend) | Annualized (with dividend) | |
|---|---|---|
| CapitaMall Trust | +4.12% | +8.22% |
| MapletreeInd Trust | +8.11% | +10.73% |
| Kep DC Reit | +7.73% | +11.11% |
| Frasers Cpt Trust | +4.13% | +8.36% |
| Lendlease Reit | -- | -- |
Investment Portfolio performance gain 6.09% for the year. Despite the positive performance of the portfolio with most of the category returning positive, there was a dip in the Strategic Unrealized section registering a decline of 18.56%. The reason was due to the underperforming of InnoTek and Fu Yu. Overall, the portfolio performance was boosted and holding up by the Crypto investment registering a gain of 465.49% for the year. This eventually led to the 6.09% of the Investment Portfolio compared to a dip of 0.34% for FTSE STI.
Stock Incubator
| 2023 | 2022 | Variant | |
|---|---|---|---|
| Unrealized Gain/Loss | +41.96% | +64.78% | -38.09% |
| Realized Gain/Loss | +45.26% | +32.29% | +40.17% |
| Dividend Return | +26.81% | +22.74% | +17.90% |
| Cash Holding | +70.35% | +65.39% | +7.59% |
| Portfolio | +114.03% | +119.82% | -4.83% |
| STI | 3240.27 | 3251.32 | -0.34% |
| Annualized (w/o dividend) | Annualized (with dividend) | |
|---|---|---|
| Nordic | +16.55% | +20.20% |
| Valuetronics | -- | -- |
| Creative | -13.58% | -- |
Stock Incubator portfolio registered a decline of 4.83%. The negative performance was not actually due to poor performance of the 3 stocks in the portfolio but rather a re-adjustment for Nordic Group (refer here). Due to the re-adjustment, Nordic Group closing price for 2023 was $0.36 vs $0.4242 in 2022. On the other hand, Valuetronics was $0.595 vs $0.52 and Creative was $1.43 vs $1.42.
Looking Ahead
Global economy continues to be uncertain for 2024 and this should be the case for stock markets. For the Investment Portfolio, the wild card should be the Crypto investment. This is even more unpredictable than stocks in general. It could record further gain thus pushing up the performance of the portfolio, it could spring a surprise drop either. The Income section of the Investment Portfolio shall continue to collect dividend and maintaining a steady growth. For the Strategic section, will be looking out for opportunity to increase holding. As for the Stock Incubator Portfolio, capital recovery shall be continued for Creative Technology.
Though inflation has shown signs of cooling down, it is still at elevated level with interest rate maintaining at elevated level too. Many might be looking toward rate cut this year, this is not the main focus point. The problem still remain at how fast inflation can be bring down. Prolong period of elevated inflation and interest rate could eventually lead to stagflation. Stagflation is a thorny crisis. There isn't any quick fix for it. To make matter worse, whatever policies dish out to counter that are nothing but trial and error type. Stagflation can last for decades !!!
