The last week is a great illustration on why one should never have capital tied up in the stock market that one needs in the next 3 years.

People seem to have forgotten but a stock market correction of at least 10% typically occurs once every two years in the US and even more frequently in Hong Kong.

This indeed happened in 2018 when long term interest rates were going up and is happening now with the current virus scare.

Will this virus continue to have the current impact in three years’ time or even two years’ time? I very much doubt it and the impact of this will likely have been washed away by that time.

The stock market generally has a very short term view which gives advantage to people who really treat stocks as long term investments and can “look through” the current environment.

I do find it funny that when I launch a website on portfolio management and my portfolio, a global crisis appears to happen straight after.

With globalstockinvestingtoday.com, it began within a month and with yamocapital.com, it began within two weeks!

I plan to put my long term cash held in the “fund”, to work in the coming weeks and months and am already doing so by my additions to Hong Kong listed, Link Reit and Alibaba.

To make things simpler, I have reweighted my portfolio at at 11 February and the subsequent changes as highlighted in my blog posts to start the portfolio at a net asset value of 100 so that the annual gains and likely occasional annual declines are simpler to calculate.