Monday, March 23, 2020

Victoria portfolio asset allocation - My TFSA account

March 23, 2020

Introduction


It is important for me to learn how to be a long term investor. I have to push myself to learn how to be frugal, and in the same time I have to learn how to buy low and sell high. Now it is time for to purchase some equity when SPX  is around 2200 - 2300.

Preparation for rebalance


I like to document my positions first, and then I should tell from the position what I should.


First step I plan to sell 100 shares of VAB.TO, take a loss of $82.00 dollars, so use those $2500 dollar to plan to purchase VDU.TO and VFV.TO.

Because I do believe that SPX will continue to go down, so I will purchase 30 shares of VDU.TO and 15 shares of VFV.TO. I like to reseave $1000 dollars to cash when SPX reaches 2000.

Purchase:

VDU.TO   $26.70, 40 shares
VFV.TO    $58.03, 10 shares

SPX index


My rebalance history

I only need to purchase VDU.TO today, since I already did two more purchases of VFV.TO when price went down last 30 days.

Here is my rebalance history. I like to sell more bonds with minimum loss, and then I can purchase equity.


Buy high when SPX 3300 


I have to push myself to learn more before I invest all my cash into TFSA. I have to time the market when bear market is almost in the bottom. But in February 2020, I made mistakes to put $13000 Canadian dollars into the equity.

My research is so limited, I did not ask myself why Warren Buffet holds so many cash, and his warning about bear market is coming, 50% loss of equity.


Now the above $13,000 dollars of VDU.TO and VFV.TO has more than -30% market change.

VFV.TO 83 shares at price $78.99 Feb. 6, 2020. Compared to current price, the price is $58.03 on March 23, 2020.

The market change of the above VFV.TO is ($1822.68), percent profit/ loss 27.80%.

VDU.TO 179 share at price $36.87. Compared to today's price, the price is $26.70. The market change is ($1804.32), 27.339%.



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