Cory Diary : Trading notes in Foreign Markets

Just a quick update on my investment. With recent spike in the stock markets, total foreign shares stand around 13% of the portfolio. One significant milestone is the profit gain ytd matches in % term to the local market finally.

The mix in the portfolio is to compensate the lack of international level exposure and growth. Therefore foreign shares are exactly targeted at this segment. Like in some investors, timing wise my foray in US and Chinese markets aren't really good.

The US market corrected as soon I deployed my first 5% allocation. It takes like half a year to get what I am today. As for the Chinese market, I entered after they were already in deep correction but they just go much deeper after deploying my initial fund. Fortunately, this are in mini steps so the exposure do not rock the portfolio significantly while allows me to buy time to learn. At the same time slowly build the allocation up. In Equity allocation US share value has hits 2/3 of the foreign shares. The strategy is to allow initial outlay of the fund to break even or in profit territory before pumping in more.

What this mean is the Chinese stock allocation increment will be frozen. The US Market has grown from strength to strength. A few hitting 25% gains within the year on average as we average up. May reach a pause now as we now have sufficient exposure. What to do with some of my US cash ?

The bad thing about moving fund around between markets is forex cost. Maybe I should look for some US denominated local dividend stocks. One interesting counter is HongKongLand USD which has been 22 cent dividends for the past few years. This works out to about 4.2% yield. Below the chart.

However the Math do not add up. The stock price has been on downward trend for the past few years, The amount of dividends collected is far below the capital loss.

Another stock I could check is DairyFarm USD. Chart Below.

Unfortunately, it has the same tune. Why would people want to invest in such counters when their stock price has been on quite an amount of decline of recent years ?

To be clear I am doing this without reading their financials and have them filtered out. Mean time my USD fund will remains in cash. Happy Reading.

Cory

2021-1014

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Articles in this Blog is personal take and educational purposes only. Reader should seek their own professional help when making financial decision and be responsible for their decision.