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Sold out of PTIAX. Preserve profit. Pay off the furniture we bought at zero interest. The rest will go into the sweep account until I consider my options. A chance to grow cash. Never managed to do that, in all these years. Dry powder is good to have around.
Here it is …
New Position (Bought)
Tactical Buys & Sells (Still own)
5 Largest Positions (+ - 8%)
Still watching and sitting in Hold position since year-end shuffling completed in early January.
I was sticking to my knitting, following my pre-planned Order of Battle, shifting into bonds, earlier, and reached my 60% bonds goal in the portfolio. Ballast, reduce volatility..... Along came changing realities: rising rates, war, inflation, supply issues..... I still own a big hunk of bonds. But I just exchanged a mouthful of them for TRP Financial Services, PRISX.
After cashing-out PTIAX, that $$$ will go to the sweep account until I decide on a fitting destination for the money. My ENIC has been a true dawg--- until 3 days ago. I'm liking the action there. Limit order is in for $1.60.
Something else I've uncovered: ATGFF. AltaGas. Lots of US customers, but HQ in Calgary. Nice dividend. Would love to get it a bit below Fair Value.
I’ve made a lot more moves than I typically do this year for several reasons:
(1) Having moved to Fido from TRP last year has opened up a rich universe of funds (especially ETFs) I never knew existed. As I’ve investigated the much wider menu of offerings, I’ve moved into some - usually from former TRP funds. The change also opened the door for owning specific stocks, though they’re limited to about 10% of total investments.
(2) The world of investing is shifting with the uptick in interest rates. I think it’s a long term trend. So, I’ve lightened up on bond heavy funds (like PRSIX / PSMM) and opted in favor of more “go anywhere” & alternative types.
(3) Late in 2021 I became alarmed at valuations. That caused me to allocate about 9-10% to a defensive sleeve that typically rises when equities fall. I think some of the overvaluation has been removed, but equities are still rich. So that defensive position remains largely intact.
I just "lightened" up on SFAAX & VLAAX in taxable account. Small holding in both so tax will be very small.
Now , where to place the proceeds ?
Enjoy the Tourney, Derf
@Derf - Thanks for the question. No set percent. Easiest to explain if I post my allocation model.
- 25% is assigned to fixed income. No changes were made in the composition. The weighting, however was reduced from 30% to 25%.
- 25% is allocated to growth. I retained the holdings already in place, including DODBX (30% fixed income). But sold half of RPGAX (30% fixed) and substituted FLJP - a Japanese ETF.
- A 10% allocation to the defensive position does contain 3 funds with substantial bond holdings. Those, however, tend to be short term or laddered, serving primarily as “ballast” while the funds invest the remaining amount in puts, calls and other derivatives.
- That leaves the 40% alternative sleeve where most changes occurred. I axed 3 funds: AOK (70% fixed income), PRSIX (60% fixed income) and PSMM. The latter’s bond exposure is variable - but roughly in the 35-55% area. These were replaced by a market neutral fund, a long-short fund and one individual stock.
(* I had to correct the stated percentages from initially. )
Re question 2. The changes were all in Roth & Traditional IRAs. An investment in munis, which is part of the fixed income sleeve, remained the same.
I recently (last week) did a switcheroo on my broad-basket commodities play. I bought DBC, Invesco DB Commodity Index Tracking Fund about a year ago and it's paid off really well. One of the smarter moves I've made among many dumb ones. But as recent energy volatility has shown, that ETF can be erratic. So, I looked at the comparable suggestion by other posters, COM, Direxion Auspice Broad Commodity Strategy, and moved my DBC money to COM. This is a managed ETF with historically less volatility, a smaller roller coaster.
Another ETF I have my eye on is NANR, a natural resource ETF. Back in the last NR/commodities up-cycle I used to own a TRP fund, PRNEX. This would be a similar play. Just not sure how much of my portfolio I want to commit to these sectors (Commodities/PMs/NR).
I'm probably more cautious than a lot of posters, given no pension and adequate but not massive savings/investment $. #1 position now is cash, #2 is PQTAX, with some ETFs mainly in trading mode. Capital preservation is the main objective at this point.
Still very bearish and think we could be in for a 73/74 style bear. But also realize markets often begin to rebound when the headline news looks the worst. Was impressed with how the market reacted to the hawkish Fed news Wednesday. Would prefer to see a powerful upside/downside day or two to get aggressive which in the past has ended most bear /major corrections.
You’ve been consistent for a long while re your commodities exposure. Bolder than I who got out mostly last July. Too many memories of past tumbles in that sector. Glad it’s working for you. However, one of my largest holdings, ABRZX, has quite a bit of exposure to commodities as does PRPFX. I have liked / owned the metals and miners a long while. RIO was highlighted as part of the broader group in Barron’s last summer when I bought it. Its exposure to rare earth metals has benefited from all the global turmoil.
@AndyJ - Thanks for mentioning an investor’s position and risk tolerance, At 76 I’m pretty risk averse (and have never maintained a separate “rainy day” cash stash). So I put a lot more thought into limiting potential downside than in growing what I have. I suspect many here are of an age, risk tolerance, where our thoughts may resonate.
I think it’s OK (or helpful ) for an investor to hold a broad macro view. That view may help shape investment direction. Yet, IMHO one shouldn’t let that macro view totally dictate allocation. A subtle difference - but the only way I can rationalize having some growth investments while maintaining an overall bearish view.
Recognize that a “macro view” is much more complex than simply being “bear” or “bull”. I also think there may be pockets of value here and there (funds / individual stocks) if individuals do their homework first and than make measured bets.
This morning it was a case of “Shoot first. Ask questions later.”
Related to the threads topic but not to my post to @Hank above… purchased a few thousand worth of QQQ at $348 ish for a 16 year old relative. It’s down so much there’s nowhere to go but…?
Ummm … Good point. I’m not familiar with the legalities here. Is Berkshire locked in to the offer for 25 days? I’d have to guess that’s a very generous offer. Will be surprised if anyone tops it. FWIW: I sold at $846 having put in a limit offer before open. Y closed at $844.60. So there was a slight drift down during the day.
Rocked my boat seeing it up 25% in the pre market hours. I’m very old and very conservative. Would have settled for 25% over 2 or 3 years. Already have 2 stocks in the growth sleeve. Having this one in the more conservative “alternative” sleeve was a real reach in the first place.
Below is a link to the Barron’s article that whetted my appetite last November. I tracked and studied the company for over 3 months before deciding to take a bite. Averaged in during February / March while it was falling. Bottomed at $588 March 8. Currently $844.60
But thanks for the thoughts.
BTW - I think Barron’s is underappreciated.
I too read Barron’s but often fail to follow up on the stories as you did. Again, job well done.
Alleghany/Y was captured in my summary then (although I didn't buy it) LINK
"BULLISH. Insurer Alleghany (Y; no dividends but special dividends with the last one in 2020; fwd P/E 14.1 (2021), 9.7 (2022); P/B 1; like mini-BRK; businesses include P&C insurance, reinsurance and noninsurance businesses such as steel fabrication, toys, funeral products, etc; pg 15);"