Musings about Life and Investments

 https://www.youtube.com/watch?v=XU4Xzuw-Jdw My latest YouTube update. If you like it, please give me a "thumbs up". It helps me with the algorithms. :-) https://www.msn.com/en-sg/travel/news/post-9-11-proved-even-the-most-wary-of-americans-would-travel-again-here-s-why-booking-holdings-ceo-believes-the-same-will-happen-after-covid-19/ar-BB19tCIn?li=BBr8Cnr Here's an article by Bookings Holding on why travel will rebound back eventually, just like it did after 911. 

 I entered this correction with an asset allocation of 62.5% equities, 5% precious metals, 5% short equities, 27.5% cash. I was nett long 57.5% in other words. I also had a small leverage of 50%.  The S&P500 is down 9.5% and my portfolio has switched to 62% long, 5% precious metals, 20% short, 13% cash. I am now 42% nett long. My leverage has fallen to 39%.  I'm quite proud of my positioning because my portfolio is down just 6.4%. I am leveraged but yet I'm faring better. I've also held a whole bunch of tech stocks that supposed fell over 10% but I'm still ok.  I think this correction is a great opportunity to buy. I'll show you why. I have been making use of this correction to pick up good companies that I’ve missed out on from April to now. Latest addition is HK Exchange, 388 HK. It is a booming business as many Chinese ADRs in the US may switch to HK for dual listing status. You can buy outright, do an Accumulator or Equity Linked Note on this to collect yiel...

 I did two videos last night on the correction of stock markets. The truth is, we cannot buy at the bottom each time. In the short term, the stock market is a voting machine. In the longer term, it is a weighing machine. I will stick to stocks and sectors where the fundamental values are below their intrinsic values.  This blog post is purely for financial education, not financial advice.  https://www.youtube.com/watch?v=qkW3GeuPz98&t=475s https://www.youtube.com/watch?v=YHgQtXf9ldk The VIX is coming down gradually, but the rate of infection rates is rising, and death rates on a daily basis has plateaued. The virus is still around and I'll stick to tech stocks for now. I feel that as long as a cure hasn't been found, a vaccine not found, old economy stocks will find it harder to recover. The S&P500 is by no means very expensive. It's divided into tech stocks that are very high in PE, oil & gas, banking stocks in cheap territory. 

  https://www.youtube.com/watch?v=8HlFClsNo5Q My latest VLOG. :-)

  Jeffrey’s Fear of Missing Out Technique   I’ve been wanting to write about the FOMO trade. It’s the “Fear of Missing Out” trade where most people missed the rally from Apr to now. I’ve been meaning to introduce to you the “JFOMO” trade which is “Jeffrey’s FOMO” trade. It deals with your emotions when you have missed out on the rally.   Statistically, a 5% correction of the S&P500 occurs twice a year. A 10% correction once a year. A 15% correction once in 2 years. A 20% correction once in 3 years. A 30% correction once in 5 years. A 40% correction once in 10 years. A 50% correction once in 20 years. Sounds about right?   If you’re waiting for a correction of 5% before entering, you could be waiting for 6 months and then it happens. During that 6 months, Amazon could rise 60%, Meituan 150%, Tesla 300%. So a 5 to 10% correction may not be worth the wait.   So I’ve devised a scheme called “JFOMO”. If you have a budget of 100k, put 10% every month into the trad...

Morningstar provides fair valuation of most US stocks. I trust Morningstar the most as most sell side brokers are not able to issue "SELL" recommendations. If you don't believe, check this out.  https://www.cnbc.com/2014/10/07/why-are-sell-side-stock-market-analysts-so-wrong.html 80% of Sell-Side analyst reports are "BUY" rating. There are cases of "SELL" recommendation for companies issued and the analyst got banned from future briefings and access to management.  https://www.reuters.com/article/us-hongkong-research-negative-idUSKCN10P05L Hence I would subscribe very much to reports that are paid by users, e.g. Morningstar.  Incidentally a market sell-down has begun. The tech sector is coming down hard. You can never time the market perfectly. That's why I'm 58% equities, 5% precious metals, 12% US Treasurys (hedge), 25% cash. I'm also 1.5x leveraged.  I'm prepared for a 20 - 30% crash and yet have the ammo to pick stocks up.  There sh...