Outlook for March 2019

The stock market sure has roared back to life since the dip in December 2018. Quarterly & annual earnings season is in full swing, and while some companies have beat the low bar previously set, a lot of companies are guiding down for the coming quarters.

On the central bank front, the Fed seems to be caving to the market pressure and signaling that the rate hike is done for this cycle. There are some market indications that we may have one more raise, but thats it. It will be interesting to see where things go from here. Meanwhile in Canada (where I am based), the BoC is following suit and also signaling the end of rate hike cycle. Again, I remain vigilant on this front in the coming weeks/months.

Outlook for March 2019

Not too much to do for my portfolio since I am already well positioned for this playbook to unfold. I have started taking some profits in the gold miners (to avoid overexposure to one company) and deployed capital elsewhere that I think will be relatively safe & stable going forward.

Since the start of the year, I have also been adding to my bond positions in order to beef up the fixed income section of my portfolio. It had fallen to as low as 9% of overall portfolio at the end of 2018. I am looking to increase that with a target of ~15%. Why bonds? Because it provides a ballast that stocks cannot provide in my portfolio if & when the stock market falters.

Meanwhile, I also continue researching investment opportunities that are outside the community’s focus either due to cyclical nature or simply because of fear mongering. Stayed tuned on this blog and the Twitter feed for new investment ideas.

As of Feb 28, 2019 our portfolio is diversified as shown below.

Looking for investment ideas? Check out this Top Investment Picks for 2019, where 30+ investors 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.

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