To The Moon

One of my biggest investment mistakes to date has been liquidating my global technology fund at the onset of COVID-19 in 2020. Though I did not suffer any loss, I also missed out on the miraculous market recovery as the Fed came to the rescue, and technology stocks flourished as electronic appliances and stay-home services that support work-from-home and online learnings were in huge demand, and companies rushed to digitise their businesses and operations. I have since been constructing my own technology equity portfolio, and I’m glad to report that I’ve so far managed to outperform the technology fund I had sold. Unlike 2020 and to some degree last year when the technology sector had generally outperformed the broader market, this year I’ll need to exercise much greater due diligence and be more selective in my stock selection. I’ve also started to rotate from growth to value plays, as the expected series of interest rate hikes in the coming months and years to keep rising inflation in check are bound to impact the growth stocks much more, given their more distant incoming cash flows. Hence, I‘ve been accumulating shares of leading banks in SG, US and HK. With their strong balance sheets and expectations of steepening yield curves, they would be a good hedge for rising inflation. I plan to continue to rebalance my portfolio this year by taking profits on some of my holdings on technology stocks and recycling the funds to add to my holdings on financial stocks. I’ve also been taking long positions on STI index fund and plan to allocate some funds to S&P500 index fund as well for low-cost, passive investment and diversification, as data has shown that low-cost, passive index funds enjoy higher returns in the long run, compared to actively managed funds. I hope you have set up your investment plan as well for this year and I wish you all the best in your investment journey.

@TigerStars@TigerEvents