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My strategy on growth stocks
10 Mar 2021 (480 views)

The growth stock that I invested in dropped by 30% during the past month. It recovered 10% last night. It is still down by 20%.

I intend to sell most of the growth stocks over the next two weeks, hopefully at prices that are 10% higher than the current prices. I will be light on growth stocks before the end of March.

In reducing my holdings, I expect to take a loss of 10% to 20% on most of the growth stocks that are in my holdings. I do not mind the loss, as they are less than the profits that I gained on these stocks during the past year.

I expect that investors will rotate from growth to value stocks during the next few months. I also expect higher interest rate (due to a stronger US economy) to depress the growth stocks.The sharp drop in the prices of growth stock during the past month is likely a precursor for what may happen over the next few months.

When I sell the US growth stocks, I will be reinvesting the proceeds in the value stocks, i.e. those with low price earning ratio and dividend yields. Most of these stocks are in China, but can be bought at a good discount from the Hong Kong Exchange.

I will still avoid the value stocks in America as they have a PE ratio of 20 or higher, compared to a PE ratio that is less than 10 for many blue chip China stocks.

I will reinvest in the US growth stocks later this year, if the stock prices come down to a lower level.

Note - I am sharing my view. Do not treat it as investment advice. Do you own due diligence before you decide to buy or sell any stock. 

Tan Kin Lian



My strategy on growth stocks
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The growth stock that I invested in dropped by 30% during the past month. It recovered 10% last night. It is still down by 20%.

I intend to sell most of the growth stocks over the next two weeks, hopefully at prices that are 10% higher than the current prices. I will be light on growth stocks before the end of March.

In reducing my holdings, I expect to take a loss of 10% to 20% on most of the growth stocks that are in my holdings. I do not mind the loss, as they are less than the profits that I gained on these stocks during the past year.

I expect that investors will rotate from growth to value stocks during the next few months. I also expect higher interest rate (due to a stronger US economy) to depress the growth stocks.The sharp drop in the prices of growth stock during the past month is likely a precursor for what may happen over the next few months.

When I sell the US growth stocks, I will be reinvesting the proceeds in the value stocks, i.e. those with low price earning ratio and dividend yields. Most of these stocks are in China, but can be bought at a good discount from the Hong Kong Exchange.

I will still avoid the value stocks in America as they have a PE ratio of 20 or higher, compared to a PE ratio that is less than 10 for many blue chip China stocks.

I will reinvest in the US growth stocks later this year, if the stock prices come down to a lower level.

Note - I am sharing my view. Do not treat it as investment advice. Do you own due diligence before you decide to buy or sell any stock. 

Tan Kin Lian