Pre-Hallowe'en Performance

Sun, 2017/10/29 - 12:37pm | Your editor
Printer-friendly version

The Sunday tables have now been posted on the website. Everyone is allowed to view our closed positions, boosted by two takeovers, one for cash, and the other for stock in an NYSE-listed US company, which means it counts as an exit for the model portfolio, although my readers know I am keeping my shares.

The tables also show serious deterioration in our stock portfolio. This can only be viewed by paid subscribers, not pre-subscribers, in part because of marketing considerations. So what is going on?

My taste for averaging down has hurt my performance because of two drug companies which have been penalized for actual or anticipated poor performance under new CEOs. One boosted its dividend to no avail. The other, it is feared will slash its dividend before the new man takes over, to save him from ignominy.

Also hurting our portfolio is the strength of the US dollar, given that most of our stock positions are in foreign currencies. This too will pass.

But that is not all that I am losing from. My US holdings are also doing poorly in the short term also because of my averaging down tendency. I think the reason I do this is because I am not really a trader. I take a long-term view of my holdings which are not really for trading.

Apart from oil stocks which have rewarded persistence, this approach can cause downward moves in the short-term. If I know what is causing the falls I am likely to average down. If I don't know what's up I await more information before acting.

More for paid subscribers follows:

Full content is available to subscribers only. Subscribe now.