It is spring cleaning for most equities and capitulation for gold. Between 15 and 28 April all holdings in both portfolios are sold except those related oil and gold. The reason is most of the markets have lost their momentums and in range bound mode. First the markets retreated because of terrorist threat . Then the markets continued on downward path on fear of higher interest rate. In this liquidity no longer drives the markets higher. Therefore to protect existing gains, it is time for spring cleaning for equities. For gold holdings, under normal circumstance using technical analysis alone, they should be liquidated. Because of the speed of gold sold off, there is insufficient time to react. Another reason is bullish case for gold has not changed. To mitigate the sold off, dollar cost average strategy is used considering the unusual large cash pile in US and Singapore portfolio. In second half of April, USD 3200, SGD 15000 and SGD 2156 was invested in World Precious Minerals Fund, United Gold & General Fund and UOB Gold Savings Account respectively. For oil, just like gold, the reasons for holding this asset class is still intacted. SGD 5000 was invested in Commerzbank Global Engery & Resources Index Fund on April 26. Here is the updated performance of US and Singapore portfolio.
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