Musings about Life and Investments

  The model portfolio is up 12.67% from 23 March to 22 July. This compares favourably against the Vanguard Global Stocks ETF (up 10.3%), but still behind S&P 500 ETF (up 13.89%) and well ahead of the HK Tracker Fund (-1.60%). XIRR is 44.67%. There were several lessons learned from this tracking.   To be near the top performing ETF, in this case S&P500, you have to be constantly overweight US stocks, especially the big caps like Amazon, Alphabet, Facebook. To outperform you have to be extra careful with out of benchmark stocks, especially when they are extremely speculative, like Lemonade, ARK, ETFs, Square, Shanghai Airport. Once their trend dies, it is advisable to exit almost all your position since it will detract you from performance. The weighting is important. To outperform, you sometimes need to overweight the index stock with your strongest conviction, with a mix of momentum and growth. Do NOT worry too much about hedging the downside, especially if you are unleveraged.

  Good day all   The model portfolio is up 7.48% from 23 Mar 2021. XIRR is 34.76%. It is still trailing behind the Vanguard Global Stocks ETF up 8.8% and the S&P500 up 10.09%. The Hong Kong Tracker Fund 3115 HK is also starting to turn up. Up 3.55%. This is for my own reference and purely for educational purposes only. It helps me correct my mistakes and track where the fund flows are going.  As I’ve mentioned there is a rotation into big capped tech sectors (e.g. Amazon, facebook, Adobe, Salesforce, ServiceNow), emerging tech (SEA Ltd, Tesla,), China tech (Meituan, Alibaba). I am tracking Alibaba closely as many of you have big positions on it. I’m seeing a huge turnaround after falling by over 30%. I’m also seeing a huge turnaround from Shanghai International Airport 600009 CN from 48.5 to 51.85.     Below is the equity curve of the portfolio.   Portfolio is still overweight US stocks. 81.1%. SGD stocks accounted for 7.3%. HKD stocks 11.5%. The cause of the underperformance from