Update For Copiers
Afternoon all.
January currently sits at +2.92% a figure I’m very happy with considering the growing concern around Covid that is dominating the start to this year.
I’ve done quite a bit of investing lately, taking small positions in lots of companies as part of my ‘Project Epicenter’ focus to find companies that should respond very well to the eventual lifting of lockdown measures in the UK and EU.
I thought it would be a good time to look at how these investments looks at the portfolio level in terms of the asset allocations and share some thoughts on what comes next.
Equities at 42.10% of exposure. My standard limit for equities is in the region of 45% but I’m willing to exceed on market weakness before Spring due to project epicenter and the performance this project will generate into the Summer of this year. We still have some core ETF positions at the index level and some dividends, but increasingly the exposure I’ve been taking has been many but little investments into UK/EU companies, which I’ve been posting extensively about recently. I’m very happy with the work I’ve been doing here and think the effort will payoff handsomely when the vaccination statistics hit critical mass and get that important R-number under 1 and in retreat.
Bonds at 12.61% of exposure. I’ve not rushed to build bond exposure as I think that increasing global debt and the inflation pressure caused by all the stimulus is going to put upward pressure on yields. The ideal scenario will be rotating some equity profits into cheaper bonds (with better yield) in late Summer to secure profits and build protection with income.
Precious Metals at 9.54% exposure. Similar to bonds really, I’ve not been rushing to take exposure. Post-Covid recovery optimism could send $GOLD and $SILVER down into the Summer so again I will buy into weakness but not chase them higher. I’m looking at $GDXJ if we do see an exodus from the precious metals when lockdowns start to ease. Looking to 2022 for reasons to remain interested here.
Crypto at 6.80% exposure. Due to the volatility and risk of crypto I only make a few very small investments in crypto. They could too easily increase my risk profile so I want to keep tight control of this allocation. I’m happy with to to 10% of equity, if there is a spike higher due to them rallying then I will look to secure profits and rebalance.
Hedges at 6.04% exposure. I have a few hedges running with Vix and forex. They are mainly for volatility dampening and will allow them to run as this kind of level around 5% of the portfolio.
Cash/Trades at 22.91% exposure. I have a short-term trade running on $HMMJ which is not a position that fits with my core strategy. It’s in nice profit but I think it can run higher. The bulk of this basket, 21.31%, is cash though ready for more investments in project epicenter or the other baskets if desired opportunities arise.
In the short-term I don’t see much change to allocations. I will be finding more epicenter related investments, targeting about 5% more exposure, but after that it will take a more meaningful market correction to trigger more widespread use of remaining capital.
Medium-term it’s all about Covid statistics starting to improve so that all the companies I’ve been investing in can talk more positively about their expectations for trading and results in 2021.
I’m happy with where things sit right now. We are getting nicely positioned into the right recovery areas and I’m purposely avoiding chasing stocks that look over-valued and over-crowded.
I’ll be posting more updates as I look at various sectors this week and with more travel restrictions happening around the world, it could be that airlines and travel get some more attention from me.
Thanks for your time.
