Outlook for December 2017

Well, the year is already coming to an end. The year has seen some tremendous moves as the stock market has continued to ignore fundamentals and rally higher. It will be interesting to note how the year will wrap up as tax-loss selling and Santa Claus rally come into play.

Not much going on in the broad markets that seems interesting enough as volatility remains depressed. The flattening yield curve is something that investors have to keep an eye on and watch and understand what its signaling.

One common theme that stands out is from the currency markets — there are lots of indications that the US$ has topped and is now entering or already in early stages of a bear market. This is one of the themes that I have been positioning my portfolio for. While I expected this to get reflected in the precious metals market, the gold and silver prices havent moved much so far. Gold is up approx 12% for the year in US$ terms and silver is up only about 3% in US%. Interestingly, the base metals have had a fantastic year so far, thanks to the demand from China. So, it appears that precious metals are lagging the base metals in this cycle.

Outlook for December 2017

I have been waiting for the broad markets to normalize and in the dearth of attractive valuations, have started looking outside the mainstream of stocks and bonds for investing. While I continue to put a small amount of money into index funds on a monthly basis, I am more specifically looking at alternative investments. Over the course of last year, I have deployed a lot of capital into the commodity sector and I have surpassed my original goal for this sector, so I am now going to sit back and wait for the market to do what it does.

Meanwhile, I am learning about new investment opportunities and started deploying cash into cryptoassets/blockchain-related companies & marijuana stocks etc. See some of my recent purchases here.

Our current portfolio looks like this:

As it stands, our portfolio diversification is as shown below.

What is your outlook for December 2017? What are your thoughts on the stocks mentioned here? Do you own them or are they on your watchlist? What do you think of the current market levels and buying here? Make sure to leave a comment below.

Looking for other investment ideas? Be sure to check out the Top 2017 Investment Picks from the blogging community.

Disclosure: Our full list of holdings is available here.

6 thoughts on “Outlook for December 2017

  1. I’ve considered dipping my toes into cryptos and blockchain, but worried about the bubble.

    Do you think the “bubble” talk is overhyped or are you looking at investments outside of strict cryptocurrencies (i.e. Bitcoin, Ethereum, etc…)?

    • Hi Nick,
      Its hard to say. Due to the meteoric rise, everything looks like a bubble, but thats what exponential growth brings. We humans are not wired to think exponentially. I have been slowly buying a bit every month. While my overall investment is tiny (less than 0.5% of my portfolio) I am looking to buy and average up or down regularly. If BTC is not your cup of tea due to the meteoric rise, look at altcoins — theres more room to run for them. ETH is the most obvious candidate here as #2 in the crypto world.

      cheers
      R2R

    • HIVE had quite a runup, but has pulled back after a bad stunt where management decided to release shares early (probably pressure from some institutions). In addition, insiders are probably coming out of their blackout period now in early Dec to sell their shares. Might be a good time to pick up if you are interested. Dont think they have released any financials yet…definitely more speculative at the moment. But its in good company — gets listed with other major corps as a way to get exposure in blockchain space (i have gone through others, and theres nothing promising from most other startups — atleast the ones that trade on capital markets like TSXV or CNSX).

      R2R

  2. R2R, We will see a correction in the financial markets sometime. I just don’t know when. I can understand why you have turned your attention to other areas like commodities. I have not historically done well there, but do hold a small allocation to that asset class. Tom

    • I hear ya. I have gone a bit overboard with the commodity sector and need to pullback a bit. I think the next runup we will see, I might trim some positions…but for now, everything is getting beaten down in the precious and base metals sectors.

      R2R

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