Hello readers!

I am back! And what a time to be back, as TGIF turned out to be China and US fighting it out through taxes and tariffs. Here is what happened on Friday 23 Aug:


  • Beijing impose new tariffs on $75 billion in goods, including reinstated levies on auto products starting Sep 2019.
  • President Donald Trump demanded U.S. companies stop doing business with China and announced he would raise the rate of tariffs on Beijing.

Long story cut short, stocks are going to take a hit. The few things that will help the markets are probably left with US Fed Rate cuts. In fact, just this week, Indonesia government has further cut rates.

I still feel, indexes will be in the red for the near term.

Impact to Llama Portfolio

I am sad to say (I know its not right to be emotional in investing and trading), that the portfolio is now red with a -1.18% overall loss, after accounting for all market movements and realised profits.

Fortunately, I have took strategic trades to encash certain holdings, and raised cash holdings to be 33% of the portfolio now. 

This will serve as a War Chest as the markets tumble, probably till US and China finds a way out of the trade conflicts.

Strategies moving forward

I will be taking short-term positions in the US market namely in 3 areas. Natural gas, Oils and US Stock index.

As Natural gas price remains low, any further drop presents as an opportunity. Same goes for oil.

As for Indexes, I would monitor the news, and trade on rises and falls of the index through VIX futures.

Llama US holdings

Llama portfolio has numerous holdings in growth stocks, namely ZScaler, Revolve Group, SciPlay, Douyu, and Square.

Sciplay was certainly bought into at the wrong time, and now in the biggest loss position. Holding it out, as it is domestic and still growing.

Best trade so far was in Weibo, bought in at 36.40 and sold off at 42. Sadly, took only a small position in it. This company has beaten expectations every quarter so far. 

Worst mistake was selling of UP Fintech position at price of $4. Big mistake, it has now went to $5. Oh wells, lesson learnt.


In short, hold cash, and wait out for bargains
That's my take, what about yours?


Cheers
Mr Llama

4 Comments

  1. Hi, may I know why you have stopped holding UT ? Any particular reasons ?

    ReplyDelete
  2. Hi Bella!

    UT is lagging in nature. Naturally, if i had access to us markets, returns would have been higher, provided i stick to strategies and remain emotionally stable.

    For UT, units are priced in only on the next trading day. Hence, I prefer to explore etfs for macro plays, and stocks to test out certain trading strategies.

    ReplyDelete
  3. ic. While I was looking for UT to buy, I came across your blog and became curious why you are not holding UT anymore. I also came to the same conclusion as above about UT and I'm starting to explore ETF in greater details. Good luck to you.

    ReplyDelete
  4. ETFs has lower expenses ratios :)

    More effectively capture price changes too. Definitely more transparent.

    UTs are still good as it disciplines you into holding it for the longer term. UT also skews away from passive holdings which is itself an opportunity.

    Good luck to you too!

    ReplyDelete