A possible alternative to hedge your portfolio?
Here I will discuss some methods that I learnt that could be especially applicable with people within "Asian Tigers" in hedging in current situation:
Regarding the recent stock market volatility, there are other ways to hedge in addition to the comprehensive way I mentioned before. As Buffett said: others are fearful and I am greedy, others are greedy and I am fearful, this is the philosophy of Buffett's life summary. It looks very simple, but it is not simple at all. It should not be used by beginners. Therefore, this method requires your cash to be able to get the bottom line. For example, a valuable technology company can be used as an opportunity to flatten the goods, $AMD(AMD)$ $Tesla Motors(TSLA)$ $NVIDIA Corp(NVDA)$ $Apple(AAPL)$ $Microsoft(MSFT)$ These are all very valuable companies, and it is rare to call them defective (correctly valued in current situation) as observed from the significant fall in the prices of the stock market. Please note that with this you will onlybe able to play a long game as it is hard to understand when they will bottom out....
Alternatively If you have some sitting capital , like if you have 7-8-digit funds sitting funds (I am referring to HKD/SGD), buy some houses/properties worth investing in as a hedge tool. Although the current interest rate hike will make real estate prices adjust, in the long run, the monetary quantification of various countries Easing, is still the safe-haven investment in real estate as the leading safety. According to the quantitative easing in the United States in 2008, the increase in property prices has been unable to catch up with wage earners. Therefore, real estate investment is a long-term investment. There is a substantial appreciation, making it a tool for hedging.
In addition, if you have excess funds, you can depreciate the currencies of various countries, look at the price in your mind, exchange Japanese yen, US pounds, and absorb them at low prices, waiting for the price to return to the previous level in the future. The exchange rate is already earned, and these opportunities are not often encountered.
If you are worried about the depreciation of the Japanese yen and the British pound, it is best to exchange for US dollar cash for hedging. The US dollar is the most recognized currency in the world, so its exchange rate fluctuations will not be too much, so one reason why the Hong Kong dollar is pegged to the US dollar, It is to stabilize the exchange rate, and you will not lose so much by holding the dollar.
If these hedging methods I mentioned above are not suitable for you, it is best not to buy anything. The best way to observe the stock market situation is to wait for the right opportunity to attack the stocks of your heart.
The above are personal sharing and do not represent investment advice. Before investing, you need to consider your own situation carefully and understand the risk tolerance.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
USD was trading at 1.7+ to SGD when I started working decades ago, dropped to less 1.4 to SGD
SGD is appreciating against USD, so is RMB too