Weekly Market Update #2
3 min read

Weekly Market Update #2

Weekly Market Update #2

The goal of the Weekly Market Update is to give you some insights on the stock market, some visibility on my portfolio, and how I make decisions.

Subscribe and receive The Next Wave directly in your inbox:

Graph of the week

In 2020 many investors where focused on the NASDAQ 100 (QQQ). QQQ  includes the 100 largest non-financial companies listed on the Nasdaq based on market cap. It has well outperformed the S&P500 in 2020 (see graph below)

Tech companies were more resilient to the Covid crisis. S&P500 finished the year at almost 20% gain. While QQQ scored almost a 50% gain.

CQQQ is about the same but for China. How does it perform? Well... also about the same as QQQ in 2020. But 2021 seems to be another story:

How much money you would have over time if you invested $10k in each index on January 1st 2020

CQQQ already registered almost 20% gain in 2021. While QQQ "only" grew by 5%. And I think it's going to continue.

In 2021 my bet is that many investors will switch focus to the Chinese market. There are many reasons for that:

  • China seems to better handle the crisis (and the virus)
  • Chinese stocks are getting more and more exposure to international investors
  • The changing world order: China will be our next global leader.

CQQQ allows me to reduce my exposure to the Western World while investing in companies resilient to the current Covid crisis.

Portfolio update

My current aim is two fold:

  • Reducing my exposure to some assets I don't believe in anymore, or that are not aligned with my vision
  • Reduce my exposure to the U.S market & increase my exposure to the Chinese market

I closed many positions last week:

Positions I closed in the past 7 days

As you can see:

  • I closed my positions in HYG and JNK
  • I reduced my exposure to assets that are not fully aligned with my strategy: Oil (USO), real estate (WELL), Palantir (PLTR) and Facebook (FB).

I also invested 8% of my portfolio in CQQQ.

What I will be focused on from now on:

  • Keep reducing my exposure on the U.S. market
  • Have a better view of my portfolio. Which sectors? Which markets? I want to be able to rebalance effectively at least every quarter
  • Have the major portion of my portfolio invested in ETFs
  • Use a small portion of my portfolio (10%) to make small (and risky) bets on individual stocks.
  • Increase my exposure to renewable energy and green-tech

What I've been reading

Investing in a Bubble
Personal Finance Philosophies
It can happen to you. Job loss, divorce, a string of disastrous investments, succumbing to your emotional flaws, being a victim of fraud, getting hit by a risk you didn’t see coming – to people in good financial shape these tend to be viewed as things that happen “to other people.” But they can happ…
Stochastic Momentum Index: A Better Stochastic
The stochastic momentum index (SMI) is a technical analysis indicator that shows price momentum by calculating its closing price distance relative to its median high-low price range. The SMI attempts to improve upon the traditional stochastic oscillator.

Enjoying these posts? Subscribe for more