42% of my portfolio remained un-invested. Since January 2018, I decided to take a back seat and watch the financial markets by the side. Looking at the volatility of the markets in the first quarter, I am glad that I did just that. My overall position was down only 1.12%.
With the strength of Singapore dollar against a basket of foreign currencies, keeping money in Singapore dollar in low inflation environment is alright. My cash holding is not eroded by inflation at the current moment.
At the same time, I am watching my expenditure side of the wealth equation. Neither a spendthrift nor a miser, I spend wisely when necessary. I ask the question: “Can I afford to spend?” If so, spend it happily. I sleep comfortably without fear of the financial markets turning downwards.
Copyright © 2018, limkimtong for Living Investment
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