To the future…

Given the volatility in the US oil markets and the madness in WTI futures in particular, I have turned my attention to oil in Asia, to ride the normalisation in the price of oil and the earlier end of lockdowns in Asia. Wuhan already has returned to traffic jams…

I have been easing into some strategies to accumulate Chinese oil majors this week and will continue next week. They are massive state-supported companies in oligopoly positions and they are trading right towards the bottom of twenty year trading ranges.

Options operate slightly differently on the Hong Kong stock exchange. One main difference is that lots are not the standard 100 shares that you might be used to dealing with. Different size stocks have different lot sizes. For example, Petrochina has lot sizes of 2000 shares, while MTR has lot sizes of 500, so pay attention if trading options!

So this is phase 1 of the ongoing 2020 strategy that I am working with.

Playing a normalisation of oil and end of lockdowns hypothesis for the next few months before exiting into a more balanced growth portfolio.

On a side note, I know that it can be difficult to focus on these things with all that is going on in the world and the human tragedies that are unfolding on a daily basis but I genuinely find that it helps me to stay positive, to keep working, keep thinking creatively and to keep trying to look forward to life beyond what we are all facing now in our different ways.

It is a difficult time to navigate all of the volatility in the world on so many fronts way beyond the financial, so look after yourself and keep yourself out of harm’s way so that you and your families live to fight another day.

Stay safe.

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