Recent Sell

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Another set of sales in our portfolio. A lot of stocks and ETFs in this round. The ongoing correction has been a spectacle to behold. The stock and bond markets have diverged quite a lot over the past few days. What initially appeared to be a dip which lot of investors chased is starting to look like the start of a much bigger issue. Where this market is headed is anyone’s guess. For the record, I don’t believe the media narrative that the market is falling just because of COVID-19 (and then things will return to normal once warm weather is here). There have been lots of fundamental problems and signs of excess for a while and COVID-19 was probably just the initial domino to fall.

I bought the initial dip as well when the correction started two weeks ago, but decided to reverse course and sell some of my high beta stocks & broad index funds and go to cash. Even with some of my high conviction long investments (I know…I appear crazy right now)..but with the Fed panicking (& all other central bankers hitting the panic button), I believe we will see a lot more problems before the next cycle of growth can begin. A lot of these high beta stocks were close to my cost basis (as I initiated a position in most of them in 2019), so in a negative environment, I expect pick them back up at a much lower price.

Seeing our portfolio drop by 5-digit numbers was not a pretty sight and when the market bounced after the first few days, I decided that it was the best opportunity to take advantage to get out of the way and go to cash and sit this storm out.

Yes, its a bit of market timing, but more importantly the daily drops was causing my stress level to go up quite a bit and causing a big distraction from my day job. So, for my overall sanity, this move made sense.

So, here are all the stocks & ETFs I sold off in the last week.

  • Alphabet Inc (GOOGL) Gain = +4.8%
  • Auxly Cannabis (XLY.V) Loss = -56%
  • Ferrari NV (RACE) Loss = -2.0%
  • S&P Global Inc (SPGI) Gain = +6.9%
  • Twilio Inc (TWLO) Gain = +12.5%
  • Vivo Cannabis (VIVO.TO) Loss = -74%
  • iShares Growth ETF Portfolio (XGRO.TO) Gain = +8.6%
  • Vanguard REIT ETF (VNQ) Loss = -1.8%
  • US & Intl Equity Index (mutual funds) Gain = +7.3%

I have taken the opportunity to clean up my portfolio a bit and get rid of the shitcos that I had littering with the cannabis stocks (XLY & VIVO).

For the record, I am still incredibly bullish about the long term prospects of Alphabet (GOOGL), Ferrari (RACE), S&P Global (SPGI) & Twilio (TWLO) and intend to go long again with a higher margin of safety.

I am still in a net long portfolio. After these sales, I am now sitting on 25% in cash, with a heavy tilt towards gold and utilities. Bonds make approx 10-12% of our overall portfolio, which has been cushioning the blow.

Full Disclosure: Our full list of holdings is available here.

4 thoughts on “Recent Sell

  1. OH damn. you are crazy! I like you…but you are crazy!

    I just went through my portfolio, and compared to my March 1st update. In 12 days, I’ve “lost” $56,000!

    I’m not selling anything…and I FULLY expect that 56k number to end up closer to 100k or more…….but my plan is to not even look at my portfolio for the next couple of months (well that’s the plan – but lets be honest I’ll keep looking everyday).

    Once I get my tax refund, Ill hold 5-10k in cash and look to add here and there – but for the most part I plan on just waiting this out. I’m only 36 ….i’m HOPING in 5ish years, we are seeing new highs again (if not sooner) and in the meantime, ill keep dripping more shares.

    If markets get ABSOLUTELY crazy……i may look at selling my cabin and investing a big chunk, and trying to make some crazy gains, but thats only if I see RBC trading at $20 or something…hah

    Good luck.

    • I managed to save a bunch of my cash from being incinerated thanks to this move. Looks like cash is the best place to be these days with everything breaking down — even gold and bonds starting look like a bad place to be these days.
      Its been painful for everyone to see the losses…but the crazy thing is that the market is still not ‘cheap’. The excess has blown off a bit, and looks like its just back to a normal multiple now. Perhaps it will just trade sideways from here? Will be tracking things closely as we tread water now

      Best
      R2R

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