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