Portfolio Update May 2008

Cumulative Return since 2007 : -8%

Dividend/Coupon/Interest received for 2009 : $33,222

P/S : For taking advantage of possible inflation and USD Downtrend, I have started taking positions in physical Gold. Gold should be well supported as China have also been increasing their gold reserves in their National Reserve. It will not be a long-term position and I intend to dispose of Gold if the bubble pops.

For the possible economic recovery, commodities will be on the rise and I have maintain position in my commodity funds and increase allocation to AUD, the commodity currency. I have converted more AUD dollars to be placed in 3mths FD at 3.24%. I have also increase allocation to Energy-related equities. Again, China have been actively increasing their activities on purchasing commodities/energy related companies & products and prices should be well-supported.

Finally, the recent equity rally have continued unabated and I will be looking to buy on dips as before. Though I will be maintaining my Cash Position and instead will be shifting out of equity funds and replacing them with direct equities that will be paying me dividends.

Gold Coast LifeStyle and Aussie Dollar

Gold Coast lifestyle from Brett Clements on Vimeo.

Queensland, Australia - Seeing this clip reminds me of my fond memories there...
Really a wonderful place to stay for extended periods.

Oh yes, which brings me to my opinion of the Aussie Dollar. It has depreciated a lot against the USD ('coz of the USD dollar strength, the impending economic global slow down). Since SGD is pegged against a basket of currencies including USD. AUD have also depreciated quite a bit to SGD. The current price of around $1.17 is within the 5 year low of $1.15.

Assuming you have some cash for Fixed Deposit, you could place it in australian dollar to earn a higher interest rates than SGD deposit. If you have a timeframe of 2-3years, you can also enjoy the potential appreciation of the AUD against SGD when the global economy demands commodities for their growth again. It is a safe bet as economy cycle exists. Further, SGD is unlikely to appreciate so much against AUD or any other currencies as a bulk of our economy is export-related and MAS moderates our currency band to maintain the competitiveness of our export trades.