Quite a huge past month and I wished I’d update this more often.

Super busy month though with family visiting so I figured today is a good day to update with the huge market change yesterday.

Current Portfolio:

HKD/USD cash: 26.3% (21.0%)

USD ST bonds: 39.5% (50.3%)

USD stocks: 18.8% (15.8%)

USD LT bonds: 6.1% (0%)

Gold (USD): 7.7% (5.3%)

YEN cash: 6.2% (10.3%)

JPY stocks: 19% (13.0%)

YEN shorts: -23.5% (-15.9%)

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Trimmed 10% ST bonds and start taking more risky positions.

Increased both US and JP equity, shorting more yen to cover the JP side.

Also created LT bonds and added gold positions to cover the “triple-punch” scenario (turned out to be really important in light of last night’s event. More in another post)

US Equity

Super strong since June. Up 7% until yesterday and came back down 2%, still a +5% since my last update.

Decided to add 5% to 20% for my distribution. If a big drop happens it will hurt, but it’s a risk that I think I can tolerate.

As Howard Marks says, you should take risks that rewards you. Going from 15% to 20% is a bit scary since I’m still a beginner, but 20% is not over-positioned by any means.

I’ll never let it gets above 25% though. If I’m really risk-on I’ll let it go as high as 25%.

If I’m super risk-off I’ll let it drop as low as 15%.

JP Equity

Super exciting 2 weeks as it went from 38k to 42k in a matter of 2 weeks – after doing almost nothing for 2 months.

After I realized it might be the next big upwave, I added ~4% to close to 20% now but honestly I saw it coming a little late.

In any case, after the big 2% adjustment last night, JP equity might go into adjustment mode too, so let’s see what happen this morning.

Like US equity, I’m happy with 20% at the moment either case – also staying within the 15-25% distribution range.

On that note, starting next year I should probably put the NISA money in US equity so the JP side can have breathing room.

USD.JPY

Kind of “stabilized” since the last update, but is slowing moving up (from 154 to 161)

Last night big US rate drop caused a 2% drop in USDJPY though and it’s back to 159.3 at the moment.

Added just a bit more carry-trade and also used a bit to just straight up add to the JP equity.

Anyways still bullish on USDJPY in the long term.

Not looking to short more than my yen assets though – will keep shorting away the entire yen position.