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Sell Taiwan Semiconductor Manufacturing (TSM)
05/07/2010 12:32 pm EST
Well, the world looks significantly different two weeks later. Risk has gone up and the reward for investing in Taiwan Semiconductor has gone down. The Taiwanese stock market has shown itself very susceptible to anything that roils China’s markets and I think the direction of China’s stock market still points down for another few months at least and the volatility of all emerging markets is on the rise.
I’ve got another reason for selling too.
As I noted in my post http://jubakpicks.com/2010/05/07/good-news-from-the-u-s-jobs-number-although-the-stock-market-doesnt-care/ the U.S. economy continues to deliver solid and perhaps improving growth. I’d like to increase Jubak’s Picks’ exposure to that U.S. growth story and selling an overseas stock such as Taiwan Semiconductor and buying a U.S. stock is one way to do that. (I’ll have the U.S. pick later today.) So I’m going to take advantage of today’s bounce, recovery, whatever from yesterday’s huge plunge to sell this position. Jubak Picks is at break even on this stock since I added it to the portfolio on October 20, 2009.
Full disclosure: I own shares of Taiwan Semiconductor Manufacturing in my personal portfolio. I will sell that position three days after this is posted.
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