There was certainly a lot of selling pressure in 2018 due to trade war fears and uncertainties in global market. We are expecting some news (good or bad) in regards to China and U.S. trade deal by March 1st, 2019. According to FED, there might be 2 rates hike this year. The global economics growth has slow down, but we don’t see any recession in near term. It is actually not a bad time to start buying now that a lot of companies are in oversold territories. Currently, we have our eyes on FB. It is trading near 52 weeks low. Facebook had a tough year due to its scandals ( election and leaking of users info.). General public definitely having a trust issue with the company. It is going to take some time to earn the trust back. However, it is still the largest social media company out there. It still own two of the largest social media and messaging assets : Instagram and Whatsapp. There’s potentially huge revenue growth when they are fully monetized. Its fundamentals are solid. Forward P/E at around $18. We don’t have any positions currently. We are looking for an entry if it drops a bit further down. Don’t enter the market with a lump sum. It’s too risky due to the volatility. It’s better to start small and build up your core position in blocks over time.
There are a few more tickers we have our eyes on and planning to start new positions in. We will discuss them in future posts.
Have a good 2019!