Riding with the Trend - Hong Kong Stock market
The HK stock market (HSI) has fallen more than 5000+ points from the high of 20,000 in July 2023. In Feb this year, I made a bold statement , making a crazy prediction that the HSI has bottomed in Jan 2023 and has been slowly accumulating this index via 2800 Tracker Fund ETF.
Fast forward to the recent week, we witnessed a straight near 10 days of bullish rallying in this index, driving mostly the tech stocks darlings like Alibaba, Tencent, Baidu, etc much higher. If you are concerned that you have missed the bottom, fret not as there are always opportunities in the market.
I believe there would be a retracement sometime next week or so and it could land on support level from 17160 to 17, 926 level. That would be another level that I would be accumulating as well.
There are many things that the Chinese government is cleaning up the stock market, managing the short sellers, adding more liquidity to the market to prevent it from falling further to boost confidence, etc. While not all the big boys are rushing in to grab a pie of this market, the tide has definitely turn one from overly bearish to cautiously bullish now.
So, if you are not into researching individual company to buy , perhaps this ETF could be a good allocation of your capital into the emerging market. With a PE of less than 10 compared to 25 for SPX, this market is very much undervalued and the potential upside far outweigh the downside. Only question is how long will it takes to become a multi-bagger. I am looking at 20-22 price level for this ETF by Q4 2024/early Q125.
Please DYODD
Fast forward to the recent week, we witnessed a straight near 10 days of bullish rallying in this index, driving mostly the tech stocks darlings like Alibaba, Tencent, Baidu, etc much higher. If you are concerned that you have missed the bottom, fret not as there are always opportunities in the market.
I believe there would be a retracement sometime next week or so and it could land on support level from 17160 to 17, 926 level. That would be another level that I would be accumulating as well.
There are many things that the Chinese government is cleaning up the stock market, managing the short sellers, adding more liquidity to the market to prevent it from falling further to boost confidence, etc. While not all the big boys are rushing in to grab a pie of this market, the tide has definitely turn one from overly bearish to cautiously bullish now.
So, if you are not into researching individual company to buy , perhaps this ETF could be a good allocation of your capital into the emerging market. With a PE of less than 10 compared to 25 for SPX, this market is very much undervalued and the potential upside far outweigh the downside. Only question is how long will it takes to become a multi-bagger. I am looking at 20-22 price level for this ETF by Q4 2024/early Q125.
Please DYODD
Comment:
accumulate on pullback