Copied from the Big Bang Investing Board ... Investment Insights Section ... for posting on the MFO Board.
This briefing is for the week ending November
19, 202
1.
The Index Review
For the week the major equity indices finished mixed. The Dow Jones Industrial Average gave back -
1.38%%. the S&P 500 Stock Index gained +0.32%, the Nasdaq Composite climbed +
1.24%% while the Russell 2000 Small Cap Index lost -2.85%. The three best performing major equity sectors for the week were consumer discretionary +3.74%, technology +2.39%, and utilities +0.98%. The widely followed S&P 500 Index closed the week with a dividend yield of
1.26% and is up year to date 25.08%. The widely followed US Aggregate Bond ETF (AGG) was listed with a yield of
1.83% and for the week lost -0.
10%. Year to date AGG has had a negative total returned of -
1.83%.
Global Equity Compass: For the week my three best performers in my global equity compass were QQQ (US Nasdaq QQQ) +2.35%, EWT (Tiawan) +
1.4
1% and SPY (US S&P 500) +0.32%.
Fixed Income Compass: For the week my three best performers in my fixed income compass were TLT (20+Year US Treasury Bond) +0.70%, IEF (7 to
10 Year US Treasury Bond) +0.2
1% and AGG (US Agg Bond) +0.
11%.
Commodity Compass: For the week my three best performers in my commodity compass were UNG (Natural Gas) +4.
11%, DBA (Agriculture) +
1.62% and GLD (Gold) -
1.05%.
Producer Compass: For the week my three best performers in my producer compass were PIO (Global Water) -0.
16%, MOO (Agribusness) -
1.37% and TAN (Solar) -
1.50%.
Currency Compass: For the week my three best performers in my currency compass were UUP (US Dollar Bullish) +0.98%, FXB (British Sterling) +0.
14%% and FXY (Japanese Yen) +0.02%
A Blurb About Old_Skeet's Portfolio: My "All Weather Asset Allocation" of 20% cash, 40% income and 40% equity affords me everything necessary to meet my needs now being retired and in the distribution phase of investing. The benefit of this asset allocation is that it provides me sufficient income, maximizes my diversification, minimizes my volatility, and provides me long-term returns.
The 20% held in cash area provides me ample cash should I need a cash draw over and above what my portfolio generates plus it can provide me the capital necessary to fund a special investment position (spiff) should I choose to open one during a stock market pullback or to take advantage of seasonal investment trends. In addition, cash helps stabilize a portfolio during stock market volatility. Example of investments held in this area are currency, money market mutual funds, FDIC bank deposits and CD's. Generally, this area benefits from rising interest rates.
The 40% held in the income area provides me ample income generation to meet my income needs in retirement. It is a well diversified area that incorporates a good number of income generating type funds. Some examples of investments held in this area are AZNAX, BAICX & PONAX .
The 40% held in the equity area provides me dividend income along with some growth, that equities generally provide, which, over time, helps to offset the effects of inflation. Some examples of investments held in this area are AMECX, IDIVX & SPECX.
From their neutral weightings, 40% each for my stock and bond areas, overweights (underweights) are allowed at + (or -) 5% with rebalance thresholds set at + (or -) 2% from desired weightings while cash is allowed to float. Thus the maximum weighting for both stocks and bonds could be as high as 47% each with their minimum weightings being as low as 33% while cash is allowed to float with a weighting range of 6% to 34%. So what seemed, at first glance, to be a very conservative asset allocation does allow for positioning based upon market reads along with some other influencing factors. Currently, I am overweight equity through the engagement of a spiff position and a little underweight in my fixed income sleeve due to anticipated rising interest rates.
Generally, for my income distributions, I take no more than a sum equal to what one half of my five year average total return has been. In this way, I have found, principal grows over time as well as the size of my disbursements. My objective is to continue to grow my principal along with increasing my income stream.
Articles of Investment Interest
Is Investing an Art, a Science, or a Craft?
https://www.gurufocus.com/news/969787/seth-klarman-is-investing-an-art-a-science-or-a-craftEurope Lockdown Fears Knock Stocks, Spark Dash for Bonds
https://www.reuters.com/markets/europe/global-markets-wrapup-3-pix-2021-11-19/The Big Green Push to Get Rid of Coal Had the Opposite Effect
https://mishtalk.com/economics/the-big-green-push-to-get-rid-of-coal-had-the-opposite-effectWall Street Forecasts for the U.S. Dollar and
10-year Treasury Yield in 2022
https://www.reuters.com/markets/us/wall-street-forecasts-us-dollar-10-year-treasury-yield-2022-2021-11-18/Old_Skeet's Favored Reference Links
Short Volume S&P 500 Index ...
https://nakedshortreport.com/company/SPYBreadth Reading ...
https://stockcharts.com/h-sc/ui?s=$SPXA50R&p=D&b=5&g=0&id=p25768973625S&P 500 Chart, Elder Ray System ...
https://stockcharts.com/h-sc/ui?s=SPY&p=D&b=5&g=0&id=p20881173280T/A Stock Opinion, SPY ...
https://www.barchart.com/etfs-funds/quotes/SPY/opinionT/A Bond Opinion, AGG ...
https://www.barchart.com/etfs-funds/quotes/AGG/opinionThanks for stopping by and reading; and, I wish all "Good Investing."
Old_Skeet