Might Include
- Tactical trades
- Repositioning
- Closing out a fund or other investment
- Acquiring a new fund or other investment
- Portfolio rebalancing
What’s the purpose here? None, except to have some fun. I get the idea folks here trade a lot. My longest stretch without trading something the past 5 years is probably only a month. The core OEFs (7 or 8 funds) haven’t changed in at least a year. But I’ll rebalance a few of them every 6-12 months. It’s “around the edges” (approx. 20% of holdings) that’s held in ETFs, CEFs, individual stocks) that has gotten churned quite a bit.
Anybody out there that hasn’t traded at least once in the last 12 months?
Comments
I think the buy / sell thread may create the wrong impression. Like you, my long term core holdings rarely change. Most of the portfolio consists of OEFs transferred in or acquired new 5 years ago when I left TRP and opened a brokerage account at Fido. (The newest, LCORX, was acquired a year ago.) Other than occasional rebalancing those are hands-off.
I leave 30% in easier to trade vehicles. These can be CEFs, ETFs and a stock or two. It’s that latter group where I’m willing to experiment / tinker around in pursuit of some extra return. An example would be building a 5% position recently in a stock that has bounced around between $95 and $105. Has required some buying and selling over past month or two to get the average share price down.
We made small adjustments in our in our tax-deferred accounts between different asset classes. No big changes for sure. Changes we made this year include:
1. Shifting more to bonds as we want to reduce our portfolio risk.
2. Increasing bond duration from short to intermediate term.
3. Learning more about muni bonds as our Tbills and CDs are maturing.
4. Rebalancing to investment grade bonds (treasury and AA corporate bonds) from high yield bonds.
"Trade and invest less. Sit back and wait for those top two or three opportunities that come along each year. Measure your level of conviction and allocate your capital accordingly."
I've learned not to marry the stuff I invest in, yet I wouldn't buy without being convinced that "Company X" is NOT a bad idea. And mutual funds have their own different set of performance statistics, in order to help the investor decide where to deploy money.
Along with yooz guys, I don't switch in and out much at all. I get on the horse to ride, not to change to a different critter in midstream. Come to think of it, doesn't that describe what arbitrage is? Playing both ends off the middle?
I'm not smart enough to do that kinda stuff.
I've left our IRAs alone, apart from changing to the Schwab brokerage, and needing to replace wifey's BRUFX with WBALX. In my own IRA, sooner or later I'll need to switch out of junk bonds into a core-plus fund. WCPNX has been pre-selected, after looking at it and kicking the tires.
I'm more active in the taxable brokerage account. Deliberately trying to grow it, since taxes are not a concern to us. Next step there, is to find another bond fund which can serve as an income-producer, so that we don't have to sell equity shares for travel or to help the folks back in the old country. THAT has been a constant drain, but other sources have been thankfully providing the money so that we're able to do it. Filipinos who've left never forget how difficult existence is for those who are still there. Ordinary people there face an uninterrupted, very stinky poopy future. Every day. Life sucks, then you die. So then, the Filipino diaspora is generous to a fault. I've lived with it, and by now am glad. I chose the right woman.
Munger: Measure your level of conviction and allocate your capital accordingly.
...Which is why I've still got a tiny stake in TS, for instance. Analysts label it a BUY, though it has lately been languishing. If/when it rises again and I can cash-out with a bit of profit, I'll do so.
I/we hold two stocks which have become our anchors, our biggest single-stock holdings. Both were chosen from the start to be long-term holds. I've made a personal investing decision that I REQUIRE at least a 3% dividend yield on the single-stocks we invest into. Single-stocks are riskier than funds. The dividend is a piece of my compensation for taking the risk.
My taxable brokerage account is primarily dividend growth stocks, and broad market ETF's. The oldest stock was obtained in 2003 and the youngest in 2021. The ETF's are all relatively new. I hardly trade (as the term is used) but I will add to them when the market goes on sale. Technically I guess you can call that a trade but I like to think of it as stocking up on a bargain.
If pressed I guess I trade mostly the CEF's in my Roth account at the rate of one trade/mo. The CEF's are primarily income producing assets that take advantage of current market conditions. I don't buy them with the intention of selling but sometimes it's the right choice.
reasons-to-sell RB