Let's talk diversification!

What % of your total portfolio is invested in the US stocks? Does it help you avoid panic when the Sensex drops in India?

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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.

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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 :chicken: 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


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This post deserves a thread of its own. Creating one for interesting Investing Nuggets like this one!

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