This will be a quick update for the month of November as there’s not much changes to update for the month.
We have seen the overall market continues its upward strong momentum, in particular within the US market and the cryptocurrency where the major caps are making its new all time high.
This is despite the Federal Reserve warning about a potential tapering to the reserve rate which the market was already expecting, thus creating no surprise element in the market.
The Chinese market hasn’t really seen much change to its fortune despite the regulatory news dwindling down in the past recent weeks. This is good for investors because we now know that they are likely controlled by a bunch of technical chartists who are waiting for the right time to send its share price soaring back. For now, it pays just to be patient and do nothing.
For the month of November, I have added just one new entry which is a position on China East Education (HKG: 0667).
Price action has been really weak in recent times despite some good news coming out from China and the company has also been buying back its shares so I guess the weakness in sentiments will persist for a little while more. Nevertheless, it’s a small position build-up for now which can increase depending on how the situation goes.
I have also been playing on a few option plays in the past recent weeks which I managed to build some income while waiting and also reducing my leverage accordingly.
Net worth didn’t move much for the past recent months and this month it was down due to further continued weakness on Chinese stocks.
I understand that if you are in the same boat as me, it can be frustrating to see your peers advancing well ahead as the US market continues its bullish momentum but I think it will be quite silly to make the changes now to the US market when it is that extended.
At the very best, you can write a few puts or calls in the US market while earning the premium while waiting for your core portfolio to rebound back. We are barely less than a year since all the regulations come into play so give it a while to play out.
I was lucky to be invited to the Tiger TFF event which runs throughout the rest of this week.
For those who missed out on my live show yesterday, you may find the repeat telecast link here.
In the 1-hour event, I spoke about the different portfolio strategy and which sectors I think is the way to move forward. I also spoke about embedding both value strategy into growth investing and how an investor can be mindful of when overpaying too much for a particular company.