Q1 marks the start of the global rollout of Pfizer and Moderna COVID-19 vaccines. Getting the population vaccinated also mark the start at getting the country to reopen again. Since then, new COVID-19 cases has seen a drastic drop, plus the recent USA stimulus fending concerns of inflation and rising interest rates, it has caused a shift away from current favorite technology counters into past forgotten hospitality and tourism sector that stand to benefit the most when countries re-opens again. In the recent few weeks, there is also a COVID-19 resurgent trend in Europe causing concerns of further extension in lockdowns, putting a damper in equity recovery.
DJI ended at 32981, an increase of 2375 points (+7.75%) compared to 4Q 2020. For Singapore, STI ended at 3165, an increase of 322 points (+11.32%) compared to last quarter. For me, all the actions are still seen over at the USA market, withdrawing from highly valued technology shares and shifting into counters that stands to benefit when countries start reopening:
Transaction 1: Sold all Apple shares in February.
Since the start of global vaccine rollout, I believe it is time to start positioning for countries reopening and the past record breaking profit will be a bar too high to repeat again. Time to step away until a lower price for re-entry.
Transaction 2: Bought 1 batch Visa shares in February.
As countries begin to re-open for travel, business travel and to a lower extend, tourism will start to pick up. With the pent-up demands, this is the time where credit and debit cards stand to be put to good use. Bought in Visa in anticipation of the new spending wave to come.
That is all for now. See you all in Q2 2021 update and thank you for reading thus far.
