Thursday, October 01, 2020

3Q 2020 Investment Strategy Update

With most of the countries busy combating COVID-19 cases, technologies shares are the focus this quarter. We have seen heavy buy-ins over at NASDAQ, while looming on the horizon, investors are getting worried over the 2nd infection wave seen in Europe. Upcoming USA Presidential Election is increasingly taking central stage. The conclusion of the first presidential candidate debate yesterday showcase Trump's ugly un-presidential "win at all cost" tactics. Depending on who becomes the next USA president, do expect more volatility in the stock market until November.

DJI ended at 27781, an increase of 1969 points (+7.62%) compared to 2Q 2020. For Singapore, STI ended at 2466, a decrease of 123 points (-4.75%) compared to last quarter. For me, most of the actions are seen over at the USA market. I have cash out my Apple shares as I saw their prices sky rocketed after their impressive quarterly result and reaching an insanely high level. After it corrected about 15%, I buy in some of the shares again as I still believe in the growth of the company. Below is just a summary of what I have done in 2Q:

Transaction 1: Sold all Apple shares in July.

After their solid quarterly result on 31-Jul, share price sky rocketed and reached an insanely high level (PE:32x), where I sold off all my holding to cash in the profits.

Transaction 2: Bought 1 batch Visa shares in August.

As more countries start loosening their internal COVID-19 restriction, economies are expected to re-bounce with more people coming out for dining and shopping (and travel giving it a few more months down the road). These are expected to lead to an increase in debit and credit card transactions. VISA should do well post COVID-19.

Transaction 3: Bought 1 batch Apple shares in September.

After correcting 14%, I repurchased some Apple shares back as I still believe in the growth of the company, especially with the next release of iPhone 12 in Oct, where it is much expected to be 5G and leading to a pend up phone renewal rate.

That is all for now. See you all in Q4 2020 update and thank you for reading thus far.

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