The Winter is coming.....

A short quote from the drama series ' The Game of Throne'.

But for here, its something else.

Many had said Covid-19 would gets under control during the warm seasons. June.....July.....August.....and now Sept is ending soon. The cold seasons is near. Winter is next. The Pandemic might just gets a boaster that will sweep across the world like a curtain of death. Hmm.. not too encouraging...isn't it.

And then we gets this. Pandemic 2022

Oh uh, its likely going to be a 2 years affairs!! In 1918, the Spanish Flu wipe out 500 million people over a period of 2 years over four successive waves. And....we are only seeing just one wave of Covid-19. 

 

Will the Pandemic be much worse than the Spanish Flu above? Although we are in modern times now. but the truth remains. Until there is a direct cure to it. this thing will stay on much longer because humans engagements remains. Things like social distancing and border restrictions will be around for a long time.

That said. The impact on the economy and the market is obvious. THE MARKET will likely not recover within 2 years. Its always seem like 2 years is an average time for a situation to recover. 2008 Global Financial Crisis and Oil Crisis of 2015/16. Both took 2 years to recover. 

So what do we do?

We continued with our lives. Eat healthy, live healthy. Whatever investments we have, we stick to the rules. Stay sustainable. Investments that can sustain during a crisis will likely recover when the situation recovers. If 2 years is the standard formula for recovery, it is possible to see the market recover by 2022.

Its a long wait!!!

Yes, so does the world. Humanity has learned to live with crisis and disasters since the beginning of time and survived. If they had done it, so can we. Ahem, assuming a meteor do not suddenly decide to end our existence like they did to our dinosaurs. Ops...

So how do we survived?

Stick with the old plan. Don't spend unnecessary. Keep a watch on our investments. Be ready to divert to less risky portfolio if need to. Many banks has cut interests. dividends has been cut as well, profits and returns will be lesser, bonuses and promotion might be lesser or worst....zero. These are the likely things we will experience for the next 2 years. If this pandemic vanished early, good for humanity. If not, harvest the will and the determination to survive it through.

Lets us stay strong. Our forefathers has survived the centuries. It is our time now.     

Monthly Financial Updates

This monthly sustainability report does not include any of the salaried income. The basis for this monthly financial review is to gauge the sustainability status of my financial independence based on the total amount of passive income received.

This month passive income got a nice boast from dividend income totaling an amount of $4,317.96. However, the DBS Multiplier account has revised the interest rate due to covid19 crisis, its much lower than before. Rental income remains stable. This brings the total amount of passive income to $6,152.99. Household expenses maintained around $2,000.....with around 10% of it spend on medical bills. Well...eh.... not much I can do about it.

Based on the projection, the amount of dividend received is much lesser. The covid19 crisis has impacted many of the businesses, most of the companies has to cut down dividend payout to stay competitive. Some however, still managed to grow despite this challenging times. Overall, I would expected dividend income to be lessen by around 20-25% for this year. But as usual I am not alarm as I am not heavily dependent on one source of passive income, and I constantly believed in staying sustainable by moving in two directions - 

1) increase/maintain passive income

2) reduce/maintain expenses

This will maintain the ratio gap between income-expense and enable us to remain sustainable for long term.

Portfolio once again remains unchanged. Funds were generally diverted and placed in war chest which grew slowly to 4% allocation. I see no immediate recovery in the market, in fact I do not think there would be any. As long as border remains closed with limited international trades, the economy will not see any drastic changes.