I reflected on my investing journey and life, and I was neutral on how far my net worth has grown. I could've certainly been more aggresive in taking up more risks in investing, for higher rewards. You could say that I am a person who is always pushing myself ahead and never be contented with what I have.
I have a "growth mindset" and I believe everyone should adopt it as well. One should always stay hungry, continuously try to learn more to improve. Never be afraid of failures. "Stay hungry, stay foolish".
Anyways, for the past year or so I have experimented with various short-term trading strategies in my accounts. Some of the accounts reached 40%, as high as 60% annualized returns. These are accounts with small capitals ranging S$20-150k. I hope to scale up the strategies to my main account for more profits. I have experimented using single index/stock leveraged ETFs to juice up the returns.
I have also adopted a more aggressive growth investing approach. I have divested all my China and SG stocks, and moved entirely to US markets. China is currently experiencing an economic "turmoil" and may stay that way for multiple years, not to mention the geo/domestic political risks. SG market is still quite "dead" in this high interest rate environment. The usual investible companies are the banks and REITs and a couple of "growth"/value SME stocks. In the past, I have analyzed over 500 SG and China stocks and my conclusion is: Ultimately, US markets boost the highest returns with relatively lesser risks and has many more high-quality growth companies globally as they choose to list in the US exchanges over other regions. The US economy continues to do well in spite of inflation due to strong consumer spending (70% of the GDP) and government spending in the form of deficits and of course the ability to maintain the strength of the dollar due to its reserved currency status. Putting aside social issues, from an investor's point of view, US markets are the heaven.
But some may argue US stocks are overvalued based on historical benchmarks. To that I will just say being "overvalued" may be the new norm now since there are a lot more liquidity (since the pandemic) vs investible companies. You simply can't use the historical P/E ratios to benchmark stocks nowadays. Historical benchmarks have to be adjusted by the amount of liquidity present in the markets. Growth stocks are always overvalued. The entire world, retail investors and sovereign funds alike, are investing in the US markets, so what do you expect?
Some stocks that I recently picked up include Monday.com and Samsara as their recent drop in prices present an opportunity to accumulate. The prices are very volatile so I'd have to monitor them carefully, and cut loss when necessary. I also made use of the dip after Powell's speech to add to SPY (using a leveraged ETF), so far this new position return has been 10% in just a few days.
My portfolio now consists of long-term and short-term positions that are highly concentrated, fewer than 10 stocks. I believe in going in big to make a big return when I see an opportunity. Cut loss quickly if the thesis doesn't work out. If you have too many positions, you will just get the average return of the positions. To beat the index, you'd have to make sure all of these positions beat the index which is hard. So by making your portfolio more concentrated, you take up more risks in the hope that you increase the likelihood of beating the index. Fewer positions also make the portfolio easier to manage and monitor.
My trades/investments involve investing in a base index ETF followed by some positions to juice up the returns so I can beat the index. I applied the many lessons I learned over the years to make sure I consistently get high returns. It requires very strict discipline not to chase after FOMO stocks, etc. Otherwise one mistake can erase your hardwork for the year. I usually trade volatile tech stocks (swing trades), and "undervalued"/beaten down value stocks.
Good luck everyone and enjoy the holidays!
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