Q1 this year has a bit of everything. Memory of last year's dismayed market performance still lingering in many people 's mind. With inflation threatening to run away in all major economies, the world major central banks have been busy bidding up their respective interest rates. With a looming recession said to be hovering over the horizon, it is thus quite a surprise that the year began with a bang, especially for China based companies. However, it appears last year's performance will carried over for this year. One thing happened after another. First, the cryptocurrency meltdown with cryptocurrency related firms failing one after another. The rapidly raising interest rates finally took its first banking victim. Suddenly, there is talk of collateral damage across the banking sector, hiking fear of a deep recession rather than a soft landing in the economy.

As quickly as the banking instability begins, it appears that normalcy returns as quickly. At least this is what it seems... For now. Swiss Central Bank's intervention followed by other actions by US federal reserve seems to settle some nerves.

In the beginning of the quarter, I rode the initial China wave and took some money off the table when the tides seem to turn. I continue to take more cash off my holding as the selloff continues. At the same time, I began to add to my gold and silver positions (mainly mining stocks).

Recently, I wrote a post regarding an anomaly I noticed in the market after initial central banks' actions. I noticed that the prices of cryptocurrencies (mainly bitcoins) raising rapidly, in the same direction as gold and silver. I also noticed that both S&P 500 and Nasdaq are holding well. From there, I concluded an undercurrent taking place in the form of excess equity coming into speculative end of the market.

I began to monitor the movement of both S&P 500 and Nasdaq closely. I also started new positions in both defense and healthcare sectors, both deemed to be safe, recession or otherwise. Towards the end of Q1 (last week), I decided that Nasdaq is turning and decided to take a new position in 3x Nasdaq ETF (TQQQ). See Nasdaq chart below (see the breakout from the blue line on the extreme right).

There is no one really standout performer in my Q1 investment. Gold and silver miners are doing well. New Chinese firms' positions, though profitable, are relatively new. As for both defense and healthcare positions, they are meant for my long term holding, so I won't be too concern about them.

For the rest of the year, I expect the China based companies to continue their improvement with COVID surge subsiding. The concern of US has been there for some time, and will be there for foreseeable future. Chinese government has always been able to set its own course and achieve its objectives. I believe this time will be the same. The price of gold and silver should also continue its match upwards in this time of uncertainty, especially if indeed stagflation comes to pass.

I further expect market to continue its climb its mountain of worries 😜. Not just Nasdaq, but I believe S&P 500 will follow suit in the subsequent quarters. Time will tell if I am right...

Q1 is a non-stop action film 📽️ for me... What about you?