Earnings season is in full swing and it makes for interesting times. Well run companies are posting near-record top line growth, while the mediocre ones continue the “miss-by-a-penny or beat-by-a-penny” earnings game.
Interesting moves on the central banks front as well in the past few days. The US Fed cut interest rates again and hinted that this will be the end of the rate cut cycle — but the bond market is calling their bluff sending yields further down post announcement. I will be keeping my eye on the bond market for further developments there.
The Bank of Canada held steady hinting at rate cuts coming early next year if not earlier. I just might hold onto my Canadian bond funds longer since the Canadian rates are going nowhere but down from here.
Outlook for November 2019
Work on portfolio management is never complete when it comes to investing. I continue to tweak and look to add to my high conviction ideas while looking for opportunities to trim others. You can track my recent buys and sales here.
I intend to remain focused on high-quality companies & high-conviction investment ideas. In my hunt for deep value, I have ended up with some weak companies that are cluttering my portfolio. I am slowly going through the cleanup activity and expect to have this completed before the end of the year.
As of Oct 31, 2019 our portfolio is diversified as shown below.
For the first time in over 2 years, my cash position has dropped below the 10% mark. I have been deploying more and more capital into the markets over the past few months and will probably slow down as the cash position dwindles.
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.
I have also started putting together a series of posts for Investment Ideas, where I explore different ways of looking at companies and finding inspiration for further research.
What are your thoughts on the points mentioned above? Do you have any specific thoughts on the markets and looking at anything interesting? Are there any stocks that you believe is a strong conviction buy here? Share with a comment below.
Full Disclosure: Our full list of holdings is available here.