Wk20: Ahead of Schedule – Overseas Holding hits 28%

As the saying goes, change is the only constant.

In the early part of this year, SG market has been outperforming the rest. But from my last blog to today, SG market is the worst performer among the 3 markets that I track closely. STI lost 4%, HK Hang Seng lost 3.5% and S&P was literally flat over this 3 weeks period.

STI loss really began early last week when COVID cases started to appear.

And it exacerbated yesterday when the government announced social restrictions that were close to that of the circuit breaker last year. For many, its like deja vu all over again. The retailers and the food/restaurant operators would be hit hard. I feel for them. How things have changed within two weeks! It was looking good just a fortnight ago.

It just goes to say that we cannot predict market movement.

The only tools we have to be profitable in the long run is to

(a) diversify our investments

(b) stay constantly invested and don’t time the market and

(c) keep a war chest of cash for quick deployment if opportunity for bargain hunting appears – and they will come and we just need to be patient.

As Warren Buffet remarked once, ” the market is where the money moves from the impatient to patient investors”

Take the US market, on Wed, it had a sharp drop after the inflation data were out and I thought “Ok, it would drop further in the coming weeks and then I would accumulate more”. But who knows on Thursday and Friday, it recovered all the losses.

On Wed, I did venture into US market to accumulate some units of ARKK after it dropped below $100. I am willing to accumulate ARKK (ARK Innovation) as I feel the companies that they hold, give a glimpse of how our future way of living is going to be like.

I also bought ARKG (ARK Genomic). Recently, due to a health problem of a family member, I started to gain a better appreciation of how genomic may make a difference in the prevention and the treatment of difficult diseases in our future. The fact that we can make a COVID vaccine in record breaking time is a clear example of what we can do with genetic knowledge.

With these recent purchases of US shares (last Wed and a bit here and there in last few weeks) and the corresponding drop in the share prices of SG companies this week, my overseas holding has risen to 28% of all equity, which is the target I have set up to achieve by end of this year.

Wow, I am now 6.5 months ahead of schedule.

I would take some time to digest this development and see if I should adjust it upwards to 30% or 32%. It is definitely a good problem to have 🙂

Ok, that’s all folks, for this week.

Do take care and stay safe from COVID.

Have a great investment week ahead.

Regards,

Warriortan

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