What % of your total portfolio is invested in the US stocks? Does it help you avoid panic when the Sensex drops in India?
Yes definitely, it helps in mitigating the risk of overall portfolio. right now my investments in US stocks are around 7 to 8 % of overall portfolio. My goal to increase that investments to at least 15%.
How are you going about this? Do you invest a fixed amount every month like an SIP?
I like to diversify across geography and assets. My diverisification strategy is something like this:-
35% in US stocks via vested
25% in Indian stocks
10% china etfs & companies via vested
10% crypto (using vauld for now)
10% p2p lending & smart contracts
10% gold & silver
20% of my overall portfolio is in US stocks,
while I have my investments diversified in India, Gold & Crypto too.
The key to not panic is, keep rotating the equity portfolio in the sectors that are about to pick up based on quarterly/half yearly/yearly analysis and focus on getting the gains. (while ensuring Stop loss) Reallocate/shift/resize the portfolio based on market sentiments.
Corrections/panic in market are bound to happen, our focus should be to keep booking profits, watch out technical/fundamental analysis. What’s lost is lost, while there are other fishes to catch, focus on what can be caught.
It’s like the treasure hunt game in loop: panic gives nothing, too much of spread in equities miss the quality & the lost time never comes back so ensure to exit the unworthy trades on time; but you need to keep finding the treasure.
What are some interesting China-based ETFs? Also, how has your experience been with P2P lending and smart contracts? I’m a bit wary.
Interesting. What’s your analysis process like? What are some helpful indicators to track?
I’ve heard this a while back, during my initial investment days
that a person can track 10-20 stocks at max in their portfolio. (the right balance is 8-12 stocks)
Considering, one should keep 8-12 stocks, the thought process is about
- having Top 2 stocks of growth/stable sectors
- or Top1 stock of each sector
the idea then is to rotate sector wise and price action wise (QoQ/half yearly/yearly basis).
If someone is finding this vague, one should look on the top stocks of each sector, then cross check with:
- its ROCE, P/E, current market price, 52 week ATH,
- company debt free or how near is it to be debt free? Is the debt reducing?
- how does the P&L look like in balance sheet? growing qoq?
- is 20dma crossing over 50/200 dma?
- other indicators (RSI/ADX/SMA/Volumes/VIX)
If this is too much then, as my other friends do - they pick the best stocks at their low, hatch it/sit over it like a for 2-4 quarters and sell it (if in profits) around the quarters mentioned here in the chart : The 3 best months for the Stock Market? - #2 by lammergeier
This post deserves a thread of its own. Creating one for interesting Investing Nuggets like this one!