Half the year is in the books, with Q2 2020 US stock market return ringing in the best quarter since 1987! Most of the returns have come from the strong performance in the tech sector, while other sectors have lagged, so anyone heavyweight in tech has enjoyed the great returns over the past few months.
Q2 earnings results will be interesting to watch as it will be the first reporting of full quarter amidst the pandemic. Expectations are pretty high as the multiples have expanded quite a bit for some names.
On the central bank front, the Fed has reduced the daily liquidity, so some weakness seems to be lurking. There is already some talk of continued support both on monetary & fiscal front, esp heading into the US election cycle over the next few months.
Outlook for July 2020
I continued deploying a considerable amount of my capital in June – being opportunistic in picking up some temporary weakness in companies such as Facebook & Microsoft (new position for me). I have also taken the opportunity to book some gains in bonds and sell off some of the losing positions like KMI and instead focus on building a higher quality portfolio.
June rang in another all time high for my portfolio, while I maintain a 20% cash position to pick up shares in case of any weakness. Following are the returns of my portfolio holdings in Q2 2020.
Portfolio position sizes as of Jul 1 2020:
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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.
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