Baring any major disruption to the stock markets early next week, January 2023 should be a good month for all of us, the stock investors
For homeland loyalist, STI is up 4.4% since the start of the year.
And for local S-Reit lovers, Lion-Phillip S-Reit ETF outperforms to climb 7.9%.
Those who are brave enough to venture overseas would have gained handsomely with S&P 500 up 6% and Nasdaq up a whopping 11% !!
And for Hong Kong investors who had suffered so badly in 2022, you should be smiling now as Hang Seng Index is up 14.7% on the back of China relaxing its strict COVID restrictions overnight.
With only 1/3 of my portfolio in overseas stocks, my gain is more moderate but it still clocked an impressive 7% in just 4 weeks !!! And that is excluding dividends distribution, which I am targeting 4.5% yield by end of this year.
Much as I hope the gain can be sustained and in best scenario, continues to rally throughout the year, I am also a realist and being warworn over the years in these brutal markets, I know that this is only a hope
So, I took some profits.
With Hong Kong stocks staging a significant recovery, I took the opportunity to pare down my exposure there.
I took some profits and sold some at breakeven price.
In the last 2 years, I learned that Hong Kong market is no longer as market “efficient” as it used to be. It is very much influenced by larger market forces at play such as the decisions of the Chinese government and the relationship between China and US, of which I have very little control. We have repeatedly seen very successful companies beaten down by new regulations that appeared overnight. That’s scary for any investors.
The impact of great visionary leadership, efficient resources and talent management and superb market competitiveness are no longer driving the valuation of the stocks there.
My HK holding used to be as big as my US holdings but it is now 35%-65%. If it continues to gain, I would reduce my exposure further. I would not hesitate to go down to 0 if I can recover my capital.
I also took some profit in some S-Reits and US stocks but to a much smaller extent. These are to lock in profits and realise my returns just in case.
Like someone once shared with me, there is no bad decision if you sell. Enjoy the moment and profit you make.
And if you think you miss a chance to buy or is experiencing FOMO, don’t worry, opportunities would come around again. Having Patience is the greatest virtue to have for a successful investment journey.
There is a famous saying – ” The stock market is a place where the impatient people hand over money to the patient ones”.
I am still hopeful that this rally probably has some more runway to go.
Enjoy it while it lasts.
Wishing all a Huat Huat new year and stay safe and healthy always.