Monthly Report (May, 2020)

May (2020), a good month of consolidation

Dear Copier and Followers,

I am glad to announce the second month in row of profits, slightly above 2%, and that's a good news in my opinion because it confirms that the new structure of the portfolio helped to stabilize performances and reduce the Risk Factor that has now fallen back to 5 on average for the month.

Moving forward I am planning to keep the risk factor to 4/5, with a max of 6, until the end of 2020 in order to capture a big amount of volatility that will most likely be present in the markets for the next 12 months.

The VIX have been converging to a value slightly above 25 during the latest period, and summer won't probably push it much lower.

A very good environment for our type of diversified portfolio.


Figure 1 shows the structure of our portfolio for the beginning of June.

Figure 1: overview on PortFolio structure

The percentage occupied by stocks increased, but actually only because we increased the our cash position to about 25% of the portfolio. We will keep a record high dry powder in the portfolio to be ready to take advantage of occasions that will most likely arise during corrections of the stocks or the miners.

On relative terms, defensive assets such as gold miners ETFs and TLT, will still occupy a large part of our portfolio.
We will maintain a high level of defensive assets for the whole summer and probably until the end of 2020.
The strategy will be adjusted depending on how the market develop.

Figure 2 shows the ETFs composition of the current Portfolio.

Figure 2: ETF composition

As you can see TLT and gold related TEFs (GLD, GDXJ) represent a large part of the ETFs we own.
This should have a long term protection effect on our portfolio.


Figure 3 shows the composition of our Stock's portfolio.

Figure 3: Stock's composition

The stocks we own are mostly stocks that I predict will do ok in a Covid hard and long recovery phase. We will try to capture their volatility and moves the best we can.
If the market outlook improves, maybe after an heavy correction we will increase our exposure to such stocks.


I thank my Copiers and Followers for the confidence and I wish you a great time moving forward.

Daniele

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The graphs and prices shown in this analysis were taken using as a source www.etoro.com, the platform I am using for my trading as DanieleTrader.
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Disclaimer

The content published in this blog represents my personal view.

It is intended for information and educational purposes only and should not be considered investment advice or an investment recommendation.
The reader is solely responsible for his/her investment choices.