Our second review for 2009 involves our HSBC Direct Portfolio which is available online in Taiwan.

The main lesson of this portfolio is that one can start from a 100% cash position in the dark days of the first quarter and still make 56.3% for the year. The System did well to protect on the downside (by staying in cash in the beginning) and by jumping into the market when the financial system stabilized.

1Q – Global Financial Crisis

The System was only willing to budge from 100% cash to 40% in bonds.

2Q – The turnaround

This turned out to be the busiest quarter for the portfolio. The stance changed from very conservative to aggressive with a high weighting in emerging markets.

3Q/4Q – A few changes

The second half of the year saw a few adjustments but mostly the portfolio maintained a fairly bullish stance with a sizable weighting in emerging markets as well as bets on mining and gold.


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