Singaporean Talks Money: Market Crash or Correction?

Hi Guys, welcome back to another episode of SingaporeanTalksMoney. This week has been crazy as we see stock prices fall 20% and even 30%. With me having a large proportion of my portfolio in Tesla, I am seeing a significant drop as Tesla closed at about $597 on Friday.

Many are trying to justify this correction or drop as money moving towards bonds as interest rate for bonds start increasing and as bonds are known to be a safer vehicle for your money, if interest rate increases, people will move a portion of their money there.

Another reason is the inflation rate where it has increased after dropping for a period of time. As inflation rate increases, value stocks perform better in high inflation periods and growth stocks perform better during low inflation.

For me, seeing all the gains I have had this year from the US stocks being wiped out, I am in a way affected and rather concerned. But I have previously all along been in the red with -$3000 to my portfolio when I was just holding SG stocks. So being there, I do know that portfolio fluctuations are even more so when having US stocks. With that being said, if we scroll out the charts and compare from beginning of 2020 to now, we still see an upward trend for VOO and Tesla. But in the short term, for Tesla to drop from $800 plus to $500 plus, it really is a scare.

1 year chart

5 days chart

But in the meantime, I have bought some shares and added them to my portfolio though not much in absolute dollar amount. These are some positions that I have initiated or will initiate.

Tesla
Vanguard Total World Stock ETF (NYSE:VT)
Palantir
ARKF - Fintech Innovation ETF

For Tesla, I have been buying in the past week but I bought at around $600 plus so imagine my horror when prices dropped to $500 plus on Friday night. For Palantir, it is a company that is very much interesting as it started out serving the US government particularly the immigration division by providing big data. After it IPO, it has very much expanded to commercial clients and even more recently, they have teamed up with Amazon to provide AWS cutomers its new Enterprise Resource Planning (ERP) System.

I hope to do another video on Palantir as it is a new addition into my portfolio. Do look out for it. Vanguard Total World Stock ETF is under my RSP with FSMone and it will be triggered or buying in on Monday, 8th March 2021. Similarly, after I scrolled through the ETF list for FSMone recently, under it's tactical plays, ARK's ETFs are available for regular savings plan meaning for an amount to buy in monthly which will be automated. This is definitely interesting as I have been looking at ARK's ETFs for a while now. With ARKK (ARK Innovation ETF), its most popular ETF available as well, I have been looking through it's holdings, with almost 10% with Tesla, I dont want to have too much of it hence I am going with ARKF - Fintech Innovation ETF partly because I see Fintech as an up and coming disruptive industry.

Payments, money management and even blockchain technology for your money is an industry that everyone is looking at. Seeing the holdings of ARKF - Fintech Innovation ETF, I went through it and with Square being the greatest holding, I am interested and like it. I have been looking at Square for awhile now since Chicken Genius first mentioned it.

Although I have no position in Square, I like the route the company is taking as a payment system company as it creates an ecosystem for money to stay within, with the cash app which can buy cryptocurrencies as well. Square has also initiated positions in Bitcoin last year and this year.

What makes Square special is also its co-founder, Jack Dorsey, who is also CEO of twitter. He is definitely a key person in Square's growth. He is also selling his first ever tweet as a NFT (non-fungible tokens) which is crazy as offers were received on Friday (March 5) went as high as US$88,888.88 (S$119,324) within minutes.

Expense ratio is definitely high for ARKF at 0.75% as it is an actively managed fund. Some companies in it are really leaders in their countries for payments/fintech for example Tencent and Alibaba. Like to also have a quick update on my portfolio after the massive crash yesterday.