S&P500 10Y PEBD 1 Jul 19

Why am i cautious going into July… (2 Jul 19)

Dear all, With reference to my market write-up published on 29 May 2019 (click HERE), where I mentioned that the sell-off in the markets revealed interesting trading opportunities, markets coincidentally bottomed on 3 Jun 2019 and staged a strong recovery. I have already sold into strength and reduced my percentage invested in stocks from 150% in early June to 12% now. Personally, I am cautious in the market going into July. Why is this so?   Basis below 1) Markets jumped yesterday following the U.S. / China trade truce announced over the weekend, despite the lack of details on what […]

Investment Strategy 2

After you understand your investment strategy and your risk profile, the next step to do is to plan your asset and currency allocation. Assume that your investment style is moderate, you are in mid twenties and you do not have immediate requirement for your cash, you can invest in a balanced portfolio. You can consider the following allocation: 50% in cash, 30% in equities and 20% in alternatives (ie commodities etc. They are considered alternatives as they typically have a negative correlation with equities.) Even if equities drop 30% and alternatives drop 30%, the overall impact to your portfolio will […]

Investment Strategy Part 1

Investing is like a game. However, it is not a zero sum game. It does not mean that if you win, the other party will lose. For eg. If you buy China Fishery at $0.65, and sell it at $0.70. Does that mean the buyer who bought from you is a sucker? Nope. He likes China Fishery because he thinks it can go up higher than $0.70, perhaps with a 2 year horizon. Does that mean that you should have sold it higher? Nope. This is because you may have a better investment alternative which may not appeal to other […]