Monday 15 January 2024

Strategy: Jan 2024

The market has sort of moved sideways in the first 2 weeks of January with a slight downward bias. Its a good time to continue regular DCA of ETFs and I have done so.

I decided to add more Vodafone to my holdings while at the same time knowing its a risky bet. My Vodafone holdings are in the red as the price have really crashed. I suspect that companies with high debt when interest rates are rising fell out of favour with investors. It works the other way as Comfort Delgro, with its nett cash balance, has performed admirably.

At the same time, steps have been taken to lower Vodafone's debt pile and dividends are still flowing (and covered by revenue). I think the upside is more than the downside, especially with rate hike pauses and even cuts on the way (I'm not betting on the latter but the former is pretty certain).

China is highly uncertain, but since I have an overweight exposure to China/HK and I'm doing small FSMOne RSP each month, I am not making any big moves to change my China/HK exposure.

However, I should still stick to my resolution to mainly DCA World ETFs. It is getting harder to do so with the US (being 50%+ of World Indices) outperforming UK, Europe, Australia, China (i.e. almost everyone else) in 2023. But history has told us not to write off the US, so I will definitely still be buying, but perhaps not as aggressively as I did in 2023 when prices were still pretty ok. 




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