My views on the market

These are unprecedented times. Unprecedented indeed. Stocks are dropping, bonds are dropping, bitcoin is dropping, various fx against the dollar 💵 is dropping. Not even gold is holding up 🆙, and at the same time inflation is coming back hard, eating away at your nest egg.

What are you doing. How are you positioning yourself?

Are you in the market, are you out? Have you gone partially cash 💰? What are you entry points if so, and what do you select?

For me, it has been rather easy. I have upheld a fairly large dividend portfolio share. Most have been allocated towards fairly stable, boring investments like banks, insurance, metals, energy/utilities.

So far this year, I can see that Nasdaq 100 is down 22%, Dow about 15%, and the Danish index about 13%. I am roughly unchanged so far for the year. With my two other accounts it is roughly 0. Not exactly profitable, but hey, it beats a lot of the “professional” fund managers.

So where do you go from here? For me, I am starting to apply a slowly repositioning of my portfolio and any new investments I put in. I have started to allocate more on a 50/50 pct basis for new investments where one part goes towards safe dividend plays of stocks I believe will fare decent in an inflationary environment, and the other half going against some of the larger more mature tech driven stocks. I bought Meta at 238 for the first portion. Dollar cost averaged at 210 or so. I bought Docusign after the large drop. I bought first portion in alibaba after the long slow China 🇨🇳 decline, and the drop on the back of the accounting disclosure issues. I have bought a couple of the larger tech companies like IBM and Intel, which actually have fairly low PE values for techs, and decent dividends at these levels.

Tech probably have further lows to make, and I have only like max of 5% of portfolio against it, but I am slowly – very slowly starting to commit new investments against it, and with a firm eye on total returns not dropping like the average nasdaq investor so far this year I feel pretty confident.

I did not bye snap. I don’t believe in them even after the 42% drop. I am watching nvidia, mongoDB, Infineon, as I believe in them, and may start positions at some point. I will probably wait 3-6 months before reducing my financial positions and actively move them to either tech or industrial.

Also, with mortgages in US around 5,20 and 4% in Denmark, I have started to consider actually putting some money 💰 against that at some point. I deem a 3 months horizon from now on optimal for DK mortgages, as we are usually 6 months after the US business cycle.

Happy investing everyone.


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