Last week in the update I pretty much said the market had become boring. Well:
Down 1.21% for the last three days. Not boring any longer.
If you’re not following the r/wallstreetbets vs. Wall Street battle going on, it’s something else. At this point, I think it’s a lot more complicated than an internet message board single handedly taking on billon dollar hedge funds, but it’s a compelling story nonetheless.
The battle spilled over into stocks today with a large pullback. Now what’s really going on behind the scenes, who knows? What I do know is stock volatility has spiked since Friday. Bonds are a bit negatively correlated, but still didn’t really provide that much protection today. Gold is going to do its own thing, and today it didn’t help, but maybe tomorrow it will. So the portfolio lightens up on stocks, equals out the bonds and gold, and brings on a bit of cash. This portfolio is quite a bit different than a few days ago, so a midweek rebalance is needed. It’s not a really a defensive portfolio yet, but one more prepared for continuing shenanigans. On January 27nd, the strategy rebalanced to:
47% SPY , 22% TLT , 22% GLD , 9% Cash
*The cash number here is one less than what’s actually at the top of the blog. With cash, sometimes the cells round everything up making the total 1% off. If that happens, you can just take a percent off the cash percentage, which is what I did here.
*All investing strategies come with the risk of loss, including this one. This portfolio may not be appropriate for your investment goals and requirements, and it is not investment advice.
It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list.
Calculations are my own. Returns shown do not include trading costs. They do not include any fees. Past performance is not indicative of future performance. Dividends are re-invested.