My Asset Allocation At The Moment

 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 yield and sell puts while you wait to buy cheaper.

 

 

 



 

 

Do note however, that the fair value for Morningstar is only USD37.93, lower than the last close of USD48.08. This is the research based on the US ADR. My personal fair value is HKD430 so that is around 17% above current market price of HKD366.

 



Positioning of many fund managers is still OVERWEIGHT cash, although sentiments among fund manager is now NEUTRAL> we are only maximum bullish when sentiments of professionals  / retail clients are maximum BEARISH.

 

https://www.youtube.com/watch?v=VcMQhz1YYZ0

 



 

Tech, Healthcare has become a very crowded trade. I suspect there will be a rotation to Energy, Banks and Staples eventually. Meanwhile Emerging Market equities are approaching the “Green zone” of Max conviction. I will treat this as a contrarian indicator. When conviction is max, I will start to move away from the “Green Zone” towards the “red zone”.



 

 

 



 

 

Comments

  1. Anonymous9 March 2021 at 03:44

    I am also eyeing 388 HK and may enter in stages these few days. I have ICE as the second largest company by market cap. 388 HK is the largest by market cap and worth investing, especially when investors have concern in BABA and are shifting to 9988 HK. Only time will tell how it will unfold. RW

    ReplyDelete

Post a Comment

Popular posts from this blog

My Funds Portfolio 14 Jan 2021

Image
  Below is the overall performance of my funds. For CPF, I put everything into funds. I refuse to buy SGD stocks because you should see the performance of MSCI Singapore below. In the last 1 year, the performance was down 5.9%. it is only this year that the performance went up slightly but it is still down. If I had used my CPF and cash to buy SGX listed companies I would have done at best 5% even with superior stock picking.   Look at the other indices. MSCI world is up 16.1%, S&P500 is up 18.0%, China is up 38.6%, Europe up 6.2%, MSCI Asia ex Japan up 28.2%. NASDAQ was of course the best performer with 44.7%. So the growth is NOT in Singapore. It is either in the US or Asia, mainly China. Even the best companies from Singapore are listed in NASDAQ, e.g. SEA Ltd. We have become the “forgotten man” or “sick Man” of Asia in terms of stock markets.       The average performance of my funds are 25.8%. this is unrealised return and doesn’t include realised gains. I’ve held them through
Read more

Lessons in Life

 I've worked with lots of people. Some are my good friends. I thought we could collaborate together. But somehow, maybe they found better opportunities elsewhere, decide to cast me aside and work with others. Some, don't add value but still want to be my equal partner. Others, limit their collaboration with me, denying me other opportunities.  The best way to act is to show every inch of gratitude I can to everyone. First, the one that opens doors and work with me wholeheartedly, I shall wholeheartedly contribute and ensure that the pie is greater than not dividing with me and working alone.  For those who opened a door and then decide to limit collaboration, I shall still be thankful, have gratitude. Whatever someone gives me in good faith, no matter how little, I shall still do my best.  For those who shut the door, I bear no grudges for I am thankful we have met.  This is the path I've chosen to walk, without regrets. 
Read more