Give me some good diversification ideas for stocks or other asset classes

As the title says…Looking for advice. I have quite a lot of my savings in cash and I want to move more into stocks now. I would hold them for probably two years minimum (after which I may sell some to buy some property )

I am currently invested about 1:3 ratio in Taiwan : US stocks.

I’m not a big believer in Taiwan stocks but I have some TSMC .

Recently I bought Oil, Telecom, Beverages, some Berkshire Hathaway and one speculative tech stock in US.

My big new idea now is to buy Chinese airlines stock on the HK stock market (I want to invest in logistics, transport ). This way I can also diversify a bit geographically and also hopefully benefit from a rebound in China. I also feel lt much less risky than US airlines investments any of which could go bankrupt. The Chinese won’t let their three big state airlines go bankrupt .

Welcome comments on what I’m missing out on etc. I already have (relatively) a lot of money in cryptocurrencies so don’t need more high risk investments.

Looking at their stock prices I don’t think it’s too late. Just two years ago.

Maybe too late now as prices have already rebounded to pre-crash levels but I’m a big fan of Cathie Wood’s ARK funds:

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Dude did you read what I posted ? :sunglasses:
I even gave people a nice chart to look at. Obviously not everything has shot back up…But I do welcome all suggestions .

Consider Baozun stock if you’re looking logistics/ transpo stock.

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Sorry, I was referring to ARK funds specifically.

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I live in Hong Kong and am quite familiar with the market there. I like the HK market as there are no capital gains, withholding or income taxes on dividends but, of course, it does hold a certain amount of political risk. Personally I am an extremely conservative investor and avoid Chinese stocks due to the unpredictability of China but you may be more comfortable with your timeline.
If you are looking at diversification then TenCent (700.HK) or China Mobile (941.HK) could be candidates. If you think global markets are heading for more turbulence then a Chinese gold miner like Zijin Mining (2899.HK). Also if you like state backed companies companies that pay good dividend for income then Bank of China (3988.HK) or ICBC (1398.HK) might suit.
I see nothing wrong with your suggestion and thinking behind Chinese airlines - my only caveat is that chinese stocks carry political risk in that the government can change investment landscape at will.
Good luck

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Thanks , some good suggestions and insights. I looked at China mobile but it’s been going down forever !
Bank of China seems like a decent option at the price and the dividend. Also currency risk I have to take into account with China I guess .
I will look into tencent again.

TenCent is a good stock. I’m mad that it’s not on the US exchanges.

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TSMC is solid.

A lot of the loans and grants are going to small and mid sized business in the US. I mentioned in another thread that I had reallocated my 403b to 40% in the S&P500.

My SAH buy is soaring with more upside to come.
BUt that’s a tradable stock.

Longer term:

OKE

From my newsletter guy:
Let’s rewind to the 2008 to 2012 timeframe we looked at earlier. This time, instead of buying a hypothetical barrel of WTI crude oil on January 1, 2008, we are going to have our past income selves purchase OKE instead. “Oh, what poor timing!” we may have thought, and it was for a while. But our OKE shares proved to be more than OK by the time the dust settled, returning a total of 132% while crude merely crashed and recovered:

Better Than OK Returns for OKE


This time around, we’re buying closer to the bottom than the top. The benefit of buying after a 75%+ drop! Oil is still swirling lower but OKE shares have found a foothold above their late March lows, a classic contrarian signal that the bad energy news is already priced in.

If you haven’t yet bought this 11.8 paying toll bridge, make sure you pick up your shares today before they pick up steam. After all, the “rally” phase may already be on for OKE.
Action to Take: Buy ONEOK (OKE) up to $40.00.

I bought in a month ago maybe? Up and down action trending up. WAY off its high.

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Johnson Matthey.

High dividend yield stock at a bargain right now. Dropped 40% since last year at this time. Closed 2019 with 10.7 billion in revenue. Very low P/E ratio.

Philip Morris International if your morals don’t prevent you from investing. High dividend yield. Q1 numbers look strong even if there wasn’t a pandemic right now.

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Also suggest looking at Tencent / Alibaba. Especially Tencent is good at buying stakes in startups, it’s not just Wechat and games.

Two suggestions from my side:

Beware of currency risk if you buy the property somewhere else, eg Europe. I did something similar once and my currency pair had moved 10% (not in my favour) when it was time to buy property.

I agree that the Chinese airlines will survive but it remains to be seen when the passenger numbers will pick up. It might be a long wait.

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You"ll keep this in mind I’m sure…it is the CCP running the show:

Chinese tech also faces a potent, if indirect, external threat in darkening relations between Washington and Beijing, which are blaming each other for the Covid devastation and preparing for a sharpened rivalry. “There’s incredible macro risk between China and the U.S. on 5G, the South China Sea, blame for coronavirus,” says Colin Gillis, director of research at hedge fund advisor Chatham Road Partners. “That could put bumps in the road for stocks.”

Not helping matters is the recent revelation by U.S.-listed Chinese Starbucks lookalike Luckin Coffee that its 2019 financials included $310 million in fictitious revenue. That prompted a Securities and Exchange Commission warning on its “inability to inspect audit work papers in China,” and some unease about the 150-some Chinese companies traded on U.S. exchanges. “Restrictions on owning these assets could be challenging,” says Conrad Saldanha, portfolio manager for emerging market equities at Neuberger Berman.

But that’s not keeping him away for now. “We have favored Tencent for a long time and are looking to buy Alibaba on weakness,” he says. “Both are phenomenal businesses proving resilient in this environment.”

Second Alibaba. I own it and it’s weathered several “storms”.

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Cheap crap always sells :wink:

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You may see Chinese firms delist themselves from U.S. exchanges following this ordeal.

:point_down: is news that been put on a backburner.

https://www.cnbc.com/2019/09/27/alibaba-other-chinese-stocks-drop-on-report-white-house-considering-china-investment-limits.html

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I gotta laugh at that cause it’s partly true. Amazon is making a killing with that “crap” as well.

But God bless em. I survive this year and maybe I can retire properly on folks buying so much cheaper crap.

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Thanks for the article

Edit. Hmmm. I believe folks have been mumbling about this for a while. Chinese stocks should be approached with caution and folks should do stronger due diligence, imo, because of their accounting practices among other stuff.

Just three points from me:
1 New York stocks haven’t hit bottom yet.
2 Try pharmaceuticals and PPE stocks especially those relating to covid19.
3 Follow the American stock market guru, Warren Buffet.

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I have by buying some shares in Berkshire . I suspect you may be right on no.1 too.

Find out which stocks Buffet buys for Berkshire.