February Portfolio Update (2022)
Here's an update on the portfolio's performance. If you have missed my portfolio review for 2021, please check it out here.
2022 Performance YTD
My Portfolio: -5.12%
Vanguard 500 Index: -8.03%
Performance since inception (Jan 2021)
My Portfolio: -4.28%
Vanguard 500 Index: 18.19%
The US market continues to skid as it experiences another drop of 3% in the month of February. This is the second consecutive month of negative returns for 2022 and follows after what is probably the worst month for S&P 500 since March 2020. Till date, Vanguard 500 index has dropped 8% and there are still no signs of recovery with the geopolitical tensions getting worse every day due to the ongoing war between Russia and Ukraine.
This is also the second month where my portfolio has a lesser drop compared to the broader market. Hopefully, this is set to continue as this will show that the tweaks and rebalancing that I did at the start of the year are working.
(Source: Portfolio Visualizer)
In the month of February, Alibaba has yet another disastrous month with a drop of -16% in a single month. In the past 8 months, Alibaba has had double digits drop in 5 months. Since late 2020, Alibaba has been on a decline and it's certainly getting frustrating seeing this stock moving towards a bottomless pit. There is really no telling where the bottom of this stock will be. For the broader index such as MCHI, the drop continues too. This is now the fourth consecutive month that MCHI has a negative monthly return. The last time this happened was in mid 2018.
Volatility persists in the price performance of Bitcoin which is very well expected. Many analysts are now believing that this is the start of crypto winter (which is typically defined as a period where prices of cryptocurrencies are either on decline or moving sideways). I will say that this is probably a very good time to accumulate your stakes in Bitcoin.
I also do share additional content in my Telegram channel. Do join the channel if you are interested.