P/L analysis calendar for August 2024, following the trend of interest rate cuts.

My investment logic,

basically follows the trend.

Specifically,

A. 80% of the investment is in blue chip stocks with high dividend yields and low volatility, such as Reits and bank stocks.

B. 0% - 50% (yes, sometimes leverage is used) is used as short-term trading chips, such as TMF and short-term declining stocks.

In part A, the main investments are N2IU and DBS. The reason for choosing N2IU is its dividend yield >6.5%, NAV ratio of 0.7-0.8. Although there is a risk of poor occupancy rate in Hong Kong and mainland China, the previous price risk of 1.2x is not significant. After the trend of interest rate cuts in the United States became more clear in July, I increased my position by 40% and sold bank stocks in August to reduce leverage. This part requires a long and patient wait. In fact, I started with an entry price of 1.42, then endured for 6-7 months in the range of 1.22-1.23, and only saw returns in July. I held DBS in January and sold it in May. I made small reentries and exits in August.

In part B, the main purpose is to add some enjoyment to life and avoid losing expectations due to the long wait in part A. Because it is intended for short-term trading, I set strict profit-taking and stop-loss targets. Not every trade goes smoothly, TMF has brought good returns while PDD has incurred a small loss, but fortunately the stop-loss setting kept the loss within a small range. The trading records above may have a time lag, but in reality, TMF has been profitable since July.

In addition, for the main investment targets, I will use a step-by-step approach to add and reduce positions. Taking N2IU as an example, assuming my benchmark stock quantity is 0.1 million shares, when the price falls, I will buy in batches in increments of 0.02 million shares, up to a maximum of 0.16 million shares. Once it exceeds the target price, I will reduce positions in batches, but I will always keep a minimum of 0.06 million shares. This way, it may result in slightly less profit during price increases, but it will also reduce some losses during price drops and avoid being caught empty-handed in case of a sustained rally.

I also wish all Mooer investors successful and fulfilling investments.