I have few pointers to make -
- I think its an index so it can’t go to zero unlike a stock which can. The key risk we are dealing here is with the timing of going long and return expectations.
2a. To time the market, I depend on technical indicators. For me 20 week moving average combined with MACD works best. As of now week is about to get close tomorrow and looks like ,most likely, Hangseng is going to close above its 20WMA with MACD histogram going above 0.
2b. I believe the index has taken support and formed a clear double bottom. Risk rewards seems really favorable.
2c. Time Drawdown has been almost 3 years now. This is definitely on the longer side of the drawdowns any index has taken statistically. So if the index has to bounce, it has to bounce now!
I agree it is attractive and I have also made a recent investment of 10% of my portfolio and will be making some more investment upto 25% of my portfolio in it with a 20% Stop loss in my mind
- For last 10 years, returns have been stagnant. So I am little concerned about the return expectations on the counter. Hence, for me this will be more of a momentum investing bet rather than a long term bet
Subscribe To Our Free Newsletter |