Dear Folks,
First off, wanted to wish you all a happy holiday season. Just wanted to chat about 2 quick items: an update on our Hong Kong basket and FOMO currently happening in U.S. Markets. This will be an informal update.
About 10 days ago, I wrote a concise list of ideas that I believed may work once the Hang Seng (Hong Kong market) found some type of sentiment stability. You can see the list here.
Given the nature of intense volatility in Hong Kong Stocks, my strategy has always been to wait for “planetary devastation” in investor sentiment and then sweep up companies from my bottom-up focus list in small-size manner with a defined target of 2-4% or 5-10% depending on the context and share this list with our members.
After I discussed Hong Kong, we also discussed buying Calls on BABA, TCOM, and KWEB with multiple expiries in early 2024.
Those calls have advanced 40-60%.
Now, I want to take a moment to talk about investor FOMO happening in U.S. markets.
The vertical move that we’ve seen since November has been historic. There’s no other way to describe it.
Some folks were fully able to capitalize on such a move. Some were more conservative and only captured a piece of it (I’m in this camp). And some lost their shirt trying to short the market.
It’s important to note that my strategy focuses on capital preservation first.
Going forward, given the expensive valuation of U.S. markets, I will do my best to share diversification ideas into emerging markets (like Hang Seng), mid-caps, and small-caps.
The traditional dollar cost averaging approach into low cost ETFs will continue to be a long-term multi-year winning strategy but expectations may want to be managed about how long this form of easy money can persist given this year’s run-up.
In the meantime, I believe there is also still upside opportunity for stock-selection heading into 2024.
I will continue to look for such ideas and discuss them with our members when and if they appear. Patience is extraordinarily important in all market cycles, but it’s importance is now greater than ever.
Share my work with your network, and hope to help you inside our Community.
Have a wonderful weekend.
Happy Holidays,
Larry
Disclaimer: My investment community is not investment, financial, or trading advice, but for educational informational purposes only. I am happy to share my personal opinions which I provide as my personal journal. Trading of any kind of securities involves a lot of risk. No guarantee of any profit whatsoever is made. Investors may lose everything they have. Practice extreme caution. No profit is guaranteed whatsoever, You assume the entire cost and risk of any trading or investing activities you choose to undertake. You are solely responsible for making your own investment decisions. Owners/authors of this publication are NOT registered as securities broker-dealers or investment advisors either with the U.S. SEC, CFTC or with any other securities/regulatory authority. Make sure to consult with a registered investment advisor, broker-dealer, and/or financial advisor.