One thing Mr Llama did to his portfolio - Yay or Nay?
Mr Llama has noted the uncertainty in the market. With the good news released today, it should boost the Oil prices. However, it has been decided that Mr Llama will take profits off his BlackRock BGF World Energy Fund A2 SGD-H holdings completely.
Putting in the Redemption (Sell) of the Unit Trust today will mean pricing in of Sale price (NAV) tomorrow on 18th Jan. Well, let's visit this Energy Fund back again when Oil price is affordable again :)
(*BlackRock BGF World Energy Fund A2 SGD-H NAV price is highly co-related to Oil Price)
It is tempting to sell off more holdings in this period. Markets are greatly affected by news or vice versa. You should bear in mind that US Government shutdown is still ongoing. UK Brexit has no clear direction yet.
China has Stimulus! Recently, PBOC had loosened Credit conditions by allowing a lower Reserve ratio for Banks. China has also been pumping liquidity into the economy.
|Source: Bloomberg; More traders bet on S&P Fall|
There is all kinds of news, classified into Positive ones and Negative ones. Mr Llama will advise you not to get emotional, and stick to your own investment / trade strategy.
As WTI Crude hits $52, it is a target for Mr Llama, as it was already planned to be a short-term trade.
Mr Llama has also diversified to Emerging markets - Thailand, Vietnam & Turkey.
And tadah! Good news from Turkey.
Turkey Central bank has held its Interest Rates constant, and only considering a cut (looser monetary policy) in the next meeting to come. In short, this would help maintain Lira's current strength against USD, and protect its Current account surplus (Inter-nations trade).
Last week, the bank announced that as of November 2018 Turkey's current account balance had posted a surplus for four consecutive months.
This is what Llama Portfolio is like after all of BlackRock BGF World Energy Fund A2 SGD-H is sold off.
|Source: Llama Finance - Llama Portfolio on 17th Jan 2019|
Any news be it good or bad, are just noise. Selling off Funds at this juncture is to provide for more Cash when the market falls. So, if the market rises, Mr Llama will continue to offload the Funds, if the market falls, and it falls enough, Mr Llama simply averages down.
I have been wanting to write about Mistakes in Llama Portfolio too.
JPM Korea Equity Fund A Acc USD
This was bought when South Korea's KOSPI index hit a one-digit P/E ratio on Bloomberg. Not much research was done, except that to ensure that no elections was taking place in the near future.
Schroder ISF-Global High Yield SGD Hedged A Dis
I was dividend hungry in the initial phase of Unit Trust investments. So much that my portfolio hit paper losses as much as 8%. Yes, it was a long and difficult 6-months battle to finally reach a profitable position again in Jan 2019.
This Fund holds mainly Corporate bonds. It is considered higher risk than sovereign or sovereign-linked bonds. A huge portion of the Bonds are B,BB or BBB rated too. I mean, look at the -4.52% on this Fund. Google around too, and you will fin out the default rates of B-rated bonds too.
Throughout this journey, I have learnt quite a far bit. And, blogging keeps me disciplined in my trades :)
Next up, bonus is coming in soon. The recent Sale of various Funds also provides good liquidity.
Please help Mr Llama and everyone else by commenting below, where else do you think we should put our money in for 2019.