With markets believing that interest rate rises are round the corner, bonds have generally come down in prices. Notably my Singtel 3.3% SGD Bond is now below 100. I am not too worried as I am holding the bonds in the portfolio long term with no intention to trade them. As long as the locked in Bond Yield is above my Loan Rate, I am still having positive Carry Yield.
End November 2021 is also the 2 Year Anniversary of this SGD400k Mini Portfolio. It has managed to return a positive return of 2.09% p.a. My self critique is that this figure is mediocre but considering this portfolio was started just before Covid 19, bearing the brunt of March 2020's market crash, fighting its way back to positive territory is already very respectable.
The next test would be whether leaving this Mini Portfolio on auto pilot for the next 1-2 years will gradually bring the Average Medium Term Returns to 5-8% p.a. Only time will tell!
Regards, Newbie
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