My invested stocks have made a strong recovery since the start of the rabbit year.
From a loss of $400,000 a few months ago, my portfolio now showed a gain of nearly $400,000 recently. This is a turnaround of $800,000. I thank the rabbit.
However, I am aware that the global economy still face major challenges:
a) Inflation and interest rate in the developed countries are likely to remain high and may move higher. This may cause their stock markets to fall further.
b) There is a risk of a default by America on their government debts. This will cause a global financial crisis.
c) The war in Ukraine can turn for the worse, and may lead to a nuclear war.
Should I clear out or remain invested? My portfolio now comprise of 10% cash. I may increase it to 20%, if I feel uncertain.
Anyway, I shall stand ready to liquidate a more significant part of my stock holdings, if the situation gets worse.
I am not ready to panic now. So, I will monitor the situation closely.
Tan Kin Lian