Suffice to say there is little in the way of good news in this update and I'll keep it fairly brief.
Just as the markets began to pick up towards the end of January again, Russia escalated tension in Ukraine and followed up with a full scale invasion in February.
This has had significant impact on markets and will continue to do so in all likelihood.
The portfolio ended down 2.65% for the month, which could have been far worse considering the overall performances in the market. Nevertheless there continues to be opportunities to invest.
I'll likely take the opportunity to use cash reserves once again to increase investments when the time is right. Patience is very important in times like these.
Providing there is a de-escalation in Ukraine in the near future we'll see markets pick up quickly again. I plan to add to the portfolio as things turn around. Somewhere in the region of 5-7% of portfolio value is most likely. Current cash reserve ratio is around 25% of portfolio value which continues to provide excellent flexibility.
As for trading activity, I'm holding off making more trades until things stabilise. It would be unwise to add to positions with the current situation. For now we will wait, hold our positions and be ready for when things turn around.
Remember, investing is a long game and times like these test our resolve. If you believe in your investment decisions don't sell up when the market is affected by external forces and fear.
My thoughts are with the people of Ukraine in this difficult time and I hope there is an end to the needless suffering soon.
Take care of yourselves and your loved ones in these trying times...
David