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July Portfolio Update

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: -21.68%

Vanguard 500 Index: -12.65%

Performance since inception (Jan 2021)

My Portfolio: -20.47%

Vanguard 500 Index: 12.24%

Second half of the year begins with a rebound in the market. All three U.S. major indices have their best month of 2022. In fact, July is the best month for all three U.S major indices since 2020. Among these three major indices, NASDAQ has the biggest gain of 12.4%. Despite this, NASDAQ still remains to be in bear territory with -21.74% YTD.

This month, the Federal Reserve announce a 0.75% hike. Obviously, the market did well as the stock market saw a winning week at the end of the month. Inflation still remains to be a major concern as the personal consumption expenditures price index rose 6.8% in June. GDP fell 0.9% in the second quarter and this marks the second straight decline which points towards a very strong recession risk. Despite all the negative news which happened in July, sentiments in the market are positive that things might be turning around the corner soon.

As usual, the market is as unpredictable as it could be. A series of good news does not necessarily mean the market will go up. Similarly, a series of bad news does not also mean the market will go down as we have seen in this month.

My personal portfolio sees a positive return in July- just like the Vanguard 500 Index. Unfortunately, the gain isn't as much as I would like it to be. This is mainly due to the drag provided by the Chinese stock market. iShares MSCI China ETF sees a double digit drop while Alibaba loses more than 20%. These are the results of several factors such as increasingly regulatory concerns, an ailing property market and fears of COVID outbreaks/lockdowns. Specifically to Alibaba, the concern of delisting returns and causes further damage. Alibaba stock has been in free fall since October 2020 and this current price level we are seeing is what we are seeing in the market in January 2017. This means that anyone who starts investing in Alibaba in the past 5.5 years are all in negative territories. This is certainly disappointing for any investors, especially given the amount of growth the company has seen in the past 5.5 years.

The ARK ETFs finally have a positive month after enduring eight consecutive months of drops. This came as no surprise as NASDAQ has a tremendous month. Both ARKK and ARKG have a better return than NASDAQ in July. If growth stocks were to rally in the second half of this year, these ARK ETFs should be able to regain the majority of the losses this year.

Bitcoin finally sees a positive month too after three consecutive months of double digit losses. The current price of Bitcoin still remains in a depressed state. As always, I'm positive about the long term price growth of Bitcoin and still strongly believe that accumulation at this level will be beneficial in the long term.

Let's hope the market continues its rebound in the rest of 2022.

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