Monthly Report (October, 2020)

 

October (2020), first month in the last Quarter

 

Dear Copier and Followers,

the interesting month of October ended, unfortunately the last few days of this month trading coincided with the per-election typical correction which reduced the gains to a negative 2.51%.

It's just a temporary effect though.

All in all, I believe we worked well during October, we increased our holding of safety assets such as TLT that have been correcting for most of the last 3 months and they are probably close to their temporary bottom.

Same goes for gold and gold miners that have been correcting more or less for the same amount of time, that's due to the fact that they are deeply connected and both connected with the Fed actions.

 We slightly increased our gold miners holding to position in preparation for what I expect to be a new upward run of the gold that might be beginning soon, maybe it's actually began the day I am writing this blog post, maybe it will take a few more months. Very difficult to place an accurate timing on such events.

 

Figure 1: Porfolio structure

 

The portfolio structure (Figure 1) shows that we started to increase stocks content and the ETFs.

Figure 2 shows they contained over 42% of TLT, over 7% of GDXJ/GLD and we began to position into TQQQ with nearly 6% holding to expose to the volatility and market gains which I believe will come during the next months (Figure 2)

 

Figure 2: ETF structure

 

If I manage to find some time I will release some posts about the very interesting situation with Gold and Nasdaq 100 and how the current situation can be interpreted.

 

As long as Biden or Trump win but can't control both Parliament chambers, I expect the market to go higher because the market hates change and uncertainty and any of the two candidate will be able to do much for the next two years if they have to pass their laws through an hostile parliament.

 

If the so called "Blue wave" were to happen (very unlikely), then I would expect a significant correction, which might follow shortly and that would be a great "buy the deep" scenario opportunity.

 

We will see how the situation develops but we tried to position our portfolio in a neutral stance in order to be able to readjust according to how the situation develops.

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

Daniele

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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