Total Portfolio Update: January 2021

Between cryptocurrency corrections, a short squeeze and a new president taking office in the USA it has been a volatile month. Bitcoin set an all time high just above $40,000 before correcting downwards by 22%; in the mean time ETH has surged by over 36% reaching an all time of $1,400.

The stock market has been dominated by a short squeeze initiated by the Reddit group ‘Wall Street Bets’. For those that don’t know, a short squeeze is when a group of investors pour money into an asset which is heavily shorted to increase its price, and therefore cause the short position to have massive losses. This is exactly what happened with GameStop (GME) and hedge funds such as Melvin Capital. Melvin was heavily shorting GameStop in what should have been a very easy trade, however an opportunity presented itself due to Melvin shorting over 100% of outstanding shares in GME. The resulting buying saw the share price of GME increasing from around $20 to a high of $347. Melvin Capital has lost 30% in value as a result and had to accept $2.75 billion in external funding to cover its short positions.

As a result of of the short squeeze of GME and other stocks such as Blackberry and AMC the wider stock market was very volatile in the last week of January. My portfolio was not immunity to this volatility and saw a slight reduction in value when compared to the beginning of the month. That being said, my approach has not changed and stocks should recover sharply.

I’ve only made one big change to my investments. I have closed my Peer to Peer lending account and now holding the funds as cash.

The Total Portfolio

My total portfolio breaks down as follows:

  • Cash: £3,537.06 (+362.59)
  • Pension: £4,973.28 (+122.08)
  • Stocks: £3,601.73 (-49.15)
  • Cryptocurrency: £563.70 (+121.55)
  • Silver: £120.54 (+12.58)

So my total net worth is £12,796.31 (+469.65)

For a breakdown of my stocks portfolio: here

Passive Income

  • Dividends: £3.51
  • Cryptocurrency £8.59

Total: £12.10

All dividends are reinvested to produce more income. Income from crypto is currently just accumulating in order to hopefully get some capital gains.

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