Total Portfolio Update: February 2021

February found itself being another up and down month similar to that of January. While there was a dip in the markets in the last week of January, this quickly recovered to then dip again in the last two weeks. Cryptocurrencies have been particularly volatile recovering from their correction in January to reach new all time highs before falling over 20%.

Crypto has by far been my best performing asset in the last month with the value of my holdings almost doubling, and at one point reaching over £1,500. Both Bitcoin and Ethereum hit new all time highs of $57,489 and $1,960 respectively. However, Crypto.com coin (CRO) has been my best performing coin reaching a high of $0.26 before settling back down to $0.14.

Two key pieces of news had come out in the last week. First, the announcement of a token burn of 70 billion tokens, second, that they will launch their mainnet on 25th March 2021. The token burn effectively decentralized the CRO coin as now most of the remaining 30 billion tokens are already in circulation. While the mainnet realizes the goal of moving CRO from the Ethereum network to a new native Crypto.org network. All of these development have reaffirmed my bullish attitude to CRO with a very real prospect of a $1 coin valuation in the next 18 months to 2 years.

In terms of the stock market, the main news has been over the rise in bond yields which as caused the markets to drop. The rise in bond yields is significant for a few reasons, first that there are rising inflation expectations; second, there is not a lot of action happening with the US Federal Reserve. What does this mean for my portfolio, absolutely nothing!

This correction, whether it is in crypto or the stock market, is healthy and very much needed. From time to time in the market there needs to be a reality check especially were valuations are currently at very high levels. The current P/E ratio of the S&P 500 stands at 38.80, historically this is very high. The 2001 dotcom bubble had a P/E of around 44, and the current market is starting to act in a similar way to then. The key similarity is the concept that valuations don’t matter, no where can this be seen more that with the rise of SPACs and new tech/fintech companies. Valuation does matter, and I will invest accordingly.

The Total Portfolio

My total portfolio breaks down as follows:

  • Cash: £3,850.03 (+312.97)
  • Pension: £5,008.28 (+35)
  • Stocks: £3,806.12 (+204.36)
  • Cryptocurrency: £1,050 (+486.96)
  • Silver: £106.64 (-12.64)

So my total net worth is £13,824.98 (+1,028.67)

For a breakdown of my stocks portfolio: here

Passive Income

  • Dividends: £10.63
  • Cryptocurrency £14.37

Total: £25.00

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

If you have enjoyed reading my portfolio updates you should also check out Markiplier who shares his 2021 net worth.

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