I can't be the only one, can I? In 2023-24, the portfolio has alternatively taken 2 steps forward and 1 step back; other days, it's 1 step forward and 2 steps back. ORK! Ya, portfolio construction has a lot to do with it. I have a mix of funds and stocks, but the funds = most of my stuff, still. And diversification means "always having to say you're sorry" about one or more holdings at any given time. Another consideration is goals and strategy. I'm not aiming for the fences; not trying to shoot the lights out. I hold ONE single, consistently great performer, an MLP in oil/gas. A midstream company. It's carrying the rest of the taxable portfolio on its back: up 30% and more from my cost basis. My AVERAGE performance in taxable is below +10%, so Schwab tells me. I have invested in some items chiefly for yield, but stock price movement has been sucky.
No panic here. At least I'm in the black, rather than the red.
Thoughts?
Comments
Some here think 5% in a money market fund is pretty enticing. So, if your holdings are ahead by 2.5% YTD you’re doing at least that well. I’ll agree it looks like a bifurcated stock market, with some sectors red hot and others “slip slidin away.” But I’m not sure that’s all that unusual.
Things go up. Things go down. My two long-short funds had a better-than-average day today. I haven’t bothered to check, but hopefully they have some tech-related shorts on. I’m tempted myself to short the QQQ. However, have some big distributions coming out later in the summer - so playing it cautious for now.
Note: I edited out an earlier comment that my funds had done about the same lately. Clearly, some have done much better than others. In general, things have been grinding higher (which is better than tumbling lower).
"dividend' stocks are up 11% LT Growth US 9% "speculative" ( ie tech) 13% Energy 6%
International 14% Emerging Markets flat
The most surprising are individual stocks an advisor picks in one sleeve. He has some real stinkers but who can argue with Rolls Royce, up 58% ?
My regional bank is BHB. It got SPANKED today, into the week-end. Knock-on effect of the scolding which the Banksters received from SEC and FDIC today? I dunno. Discouraging. Waiting and waiting for rates to come down. This bank stock will languish until then, I bet. Glad for the almost 5% dividend on the thing.
Oil drilling pipe maker TS just got hit with a negative legal decision in Brazil. Lower, but decent dividend on that one.
PRWCX is almost 40% of total portfolio. It "saved" me from a severely negative result today. Up a tiny bit. STILL RANGE-BOUND.
I cannot say there is a lot of rhyme my reason. I have always gravitated to value metrics, but have been burned many times for refusing "pay up" for stocks with high PEs. Using some of the classic "Value funds" over the years has precipitated some blow ups too especially with funds that remained concentrated in one bad position.
A 50/50 value/growth spilt would have been much more productive.
We have used the advisor for three years and other than the fact we disagree on selling a a stock down 25 to 30%, I am reasonably pleased with his "Buffet light" approach. It is well articulated and he knows the companies very very well. WIth a current P/S ratio 2/3s of market an P/FCF 50% of market, it is hopefully more resistant to the upcoming downturn. HEmanages about 45% of our equities. BKB.B is another 17%
With this as a base, I chose my own other more growth oriented ideas. I am convinced for example that inflation will be sticky and energy use will be driven by electricity demand and industrials will respond to global warming mitigation ( and repair efforts). Thus we are overweight Energy and Utilities and Industrials.
I am content plodding along, without huge gainsor big losses. I would reduce our equity % some more, but I hate paying taxes.