2024 Review 1: On Aug Flash Crash

I make several sales during Aug flash crash. On hindsight, it is better that I did nothing then. I did not buy back the sold position at higher prices, as it is psychologically difficult for me to do so. 

1) Got out of world index fund (VWRA) in Jul. 

Selling price: $133.4

Now: $139.4

Foregone gains: 4.4%

Then, I was a bit uncomfortable with US equity market, as US share prices seems weak, the valuation is expensive. So I sold off my WVRA position to reduce exposure to US equities, as US market is close to 70% of world index fund. 

2) During Aug flash crash, I panicked and got out of multi-factor world index fund (JPGL).  

Selling price: $37.6

Now: $39.1

Foregone gains: 4%

For (1) and (2), the cash from the sale were either used to buy bond ETF or kept in cash in IBKR. I did not buy back the sold position, as I still think that US market is expensive. 

3) During Aug flash crash, I also sold United Overseas Bank (UOB) shares. 

Selling price: $29.94

Now: $35.84

Foregone gains: 19.7%

Money obtained from the sale are used to purchased China Aviation Oil whose share price did not go up by much.

Then, I thought that there is chance that US enters recession and interest rate may fall significantly. Lower interest rate implies lower net interest margin and thus lower profits for banks. Hence I sold UOB. The later events show that my thinking is wrong. 

Nonetheless, I did not buy back the sold position, as UOB share price went up and I do not have any intention to buy UOB at current prices. 

4) Sold 40% of my position in Plower Bay Tech.

This is to raise cash, so that I have bigger warchest to deploy if world equity market falls further. 

I bought back the sold shares at similar prices subsequently. Hence, no gains/losses.

Now, during this week's US market drop, I did not sell anything. Probably because 

- the market did not fall by much

- I do not have much exposure to US market. 

- I don't think US market will enter 10% correction, given its strong economic growth and positive sentiments around US exceptionalism.