02 September 2014
As always it’s important for both our new readers and in some cases…our existing ones to revisit what we are doing here with this series of articles:
Click here to revisit the first edition of the MPG Core Tactical 60/40 Portfolio.
Here’s the current summary of the MPG Core Tactical 60/40 Portfolio mix, which is updated as of this writing (September 2, 2014).
The expression of “the writing is on the wall” could not be more appropriate as we inch closer to wrapping up 2014. We work and interact with countless people in the financial services industry ranging from those who manage billions in the most sophisticated manners available, all the way to a retired blue collar worker who wants straight forward investor education and service on how to invest smarter.
What each of these two parties have in common is that they don’t trust tomorrow and all of the warnings about a frothy and dangerous investing environment are as documented as they’ve perhaps ever been.
What adjustments did we make?
The moves we made were as follows:
8/18/14: Sold entire position of LSOFX (LS Opportunity Fund) @ $118.20 (~$50k total)
8/19/14: Sold 100 shares of TSLA (Tesla Motors) @ $254.87/share (~$25k total)
8/25/14: Bought 8,260 shares of MABFX (Merk Absolute Return Currency Fund) @ $9.08/share (~$75k total)
8/26/14: Bought 1,569 shares of FTGC (First Trust Global Tactical Commodity Fund) @ $31.85 (~$50k total)
With the exception of the Tesla sale our moves this month were all in line with reallocating our exposure to alternative investments. We’ll touch on this more later but let’s first address the sale of a market darling that we haven’t owned for all that long.
The simple rationale behind this move was to take profit on a stock that has returned north of 40% for us since the time we bought it. The reality and likelihood of it running even higher is actually strong but in a case like this it’s critical to maintain some “sell side discipline”. Holding on a trendy stock for a few more months while the broader markets are also closer to the side of overheating is just asking for trouble. We may buy it back but even if takes off for the races again…this old adage will be applicable, “ You never go broke taking a profit.”