After a review of Macro factors relating to the economy and the markets (amateur level analysis), I have concluded that 2024 is likely to be a green year for world markets. The economy has done pretty well despite the multiple interest rate increases as shown by US jobs data and business in general. From here on, interest rates do need to drop to revert to the mean and it is a matter of time that they do so. Industrial production (and arms/ammunition manufacturing) should remain strong.
Therefore, I feel that my 2024 strategy would be to continue to accumulate World /US ETFs rather than to build up a warchest by buying T-bills. I have set a target in terms of how much I will invest in World/US ETFs each month and track the target.
As I feel that the US market is a little bit overpriced, I might not be able to reach my target as I may be tempted to buy other stocks that seem "cheaper", but its still good to track, to see how far off from my target I end up. So far, YTD, I have bought US$15k worth of US & World ETFs. However, if S&P500 continues to rise, its going to be psychologically difficult for me to continue buying, as I like buying 'cheap stocks' However, I have also learnt to never underestimate the power of the S&P500 😅
No comments:
Post a Comment