A bit late since I’ve had to travel for work last few days. Work has been extremely busy, so I haven’t had a chance to keep up with the markets and the steady flow of drama/news, which has actually been refreshing. I knew that I was consuming too much news and have cut back over the course of year or so, but last couple of weeks have shown that I am still consuming too much financial/social media and need to cut back.
I will keep this post really short and put a current snapshot of my portfolio as of May 31, 2018. Not much has changed as for the outlook and I still maintain a fairly defensive stance on the overall market.
Outlook for June 2018
My portfolio’s exposure to the Materials sector had crossed the 50% mark earlier this year, and I decided that I had to pull back and start selling some of my positions in order to manage my risk exposure. Even after a few sales over the past 2-3 months, the increased returns keep my portfolio close to 50% mark (see the stock diversification chart below) and I will be looking to taking more profits in coming months, while maintaining an overweight position to the sector.
50% is a line I have drawn in sand that I do not want to cross when it comes to exposure to a single sector of the market. There are still some good finds elsewhere as the market re-prices equities and we go through multiple contraction as the bond yields rise. I will be looking to diversifying my portfolio further in the coming months while maintaining a healthy cash position.
I also had a couple of my positions closed in May after the covered call options expired and got called away. I managed to book some healthy profit on that front, so can’t really complain.
As of May-31-2018, our overall portfolio diversification is structured as shown below.
Looking for investment ideas? Check out this Top Investment Picks for 2018, where 35+ bloggers present their top pick and a reason to invest in those securities.
What are your thoughts on the points mentioned above? Do you have any specific thoughts on the markets and looking at anything interesting? Share with a comment below.
Full Disclosure: Our full list of holdings is available here.