End Of March Update
I wanted to look at the portfolio a little differently while doing this update.
The overall asset allocation mix is still about the same as February, so the update on the website is valid if you missed that one: https://www.globalmarkie.com/investusmaximus-february-portfolio-update/
What I’ve done with the graphic attached, ‘Equity Investment Mix’, is just look at our exposure to equities and how they are grouped in terms of objective.
This very clearly shows the focus I have put into researching and selecting the epicenter stocks to invest into with the goal of realising some great profits this Summer when these businesses are hopefully back at near-full capacity and able to talk positively about the future.
The rest of the equity mix is still over 25% of total equity exposure overall but that is spread between those areas that I would traditionally have more allocated to if it were not for the post-Covid focus this year.
This allocation of capital to the epicenter stocks is fully intentional for now and I will be looking to rebalance / target new opportunities by late Summer as I definitely want to have secured a good amount of profit before we get to the next Winter season when respiratory diseases start to flourish.
What I rotate/target towards is unknown at this time though. I’m kind of hoping the $GOLD will be weak at the end of Summer and that precious metal miners might look attractive. If the US 10-year yield has managed to approach 2%+ by that time then we could also see dividend stocks under pressure from the competition bonds will be giving them, so that could be another area to consider.
March was a solid month which could have been stronger if not for the talk of 3rd Covid waves that appeared and caused weakness in sectors such as travel and hospitality. It was steady progress though and I’m more than happy with this kind of move until we eventually see a firmer surge in the epicenter stocks when they finally break free of their Covid related shackles.
With the $UK100 still nearly 15% below its pre-Covid peak and many of my picks remaining more in the region of 35% below their early 2020 highs, there is still plenty of upside to target this year and I’ll maintain this path as long as I believe it remains a low-risk play on the markets.
The interest rate / yield situation in the US could definitely threaten global equity markets, but with the FED / ECB / BoE / BoJ all continually confirming their commitment to supporting economies, the risk-on appetite should broadly prevail through to the end of the 3rd quarter at least I think.
We will see what April throws at us to deal with, but my expectation at this time is a broadly positive month as better weather and further vaccine progress allows more positivity to emerge about the rest of the year and the easing of restrictions.
Thanks for your time.
