03 March 2014
Let’s begin by letting you know that the MPG Core Tactical portfolio has taken the lead over the passively managed indexed approach of the 60/40 Benchmark portfolio!
We fully realize that with investing you can “live and die by the sword” and banging your chest about performance can eventually lead to this deadly truth...or death. That being said, we are actually doing such to prove a point. As early in the year as it is, we have one stock that is a huge “stinker” in the portfolio and a couple that are knocking the cover off the ball. Many advisors drool at the opportunity to show you their homeruns but quickly skip over their strikeouts. Spring is in the air and so are some baseball euphemisms but let’s get into what is working for our portfolios and what is not:
First and foremost you should take a look at our overall portfolio mix which we have updated as of this writing on March 3,2014.
What adjustments did we make?
Aside from some most welcomed dividends that hit the cash account on 2/3/14 from our core bond holdings (LQD, BND, MBB, and JNK), we made the following trades:
2/13/14: Bought 61 shares of IVV (S&P 500 Index)
Sold 317.25481 shares of BND (Vanguard Total Bond Index)
Bought 480 more shares of CLNE @ $9.60 (Clean Energy Fuels Corp.) after it got pounded.
Bought an opening position in Monitise (MONIF) with 8,709 shares @ $1.15
2/14/14: For Valentine’s Day we celebrated with more dividends from our small investment in PCY (PowerShares Emerging Markets Sovereign Debt ETF)
2/25/14: As bad as they were not too long ago, we took advantage of the run-up in REIT’s and sold 49 shares of VNQ (Vanguard REIT ETF)
2/26/14: Some of those proceeds were reallocated into Gold. WHAT?!? Gold? Isn’t that something we’ve avoided for years? Yes indeed…and if you’re curious what we said about gold when it was at all-time highs and everyone wanted it…but we didn't ...Click here! If you want to see what we said most recently…click and read here. We don’t have a crystal ball but we’ll remind you when the herd is running in the wrong direction…it might be time to run where it’s not popular.
As for the standard and passively managed 60/40 Benchmark we made the monthly and automated adjustment to the allocation. Bonds did well while stocks suffered in February so here is what happened to get the allocation back in line:
2/3/14: Sold 49 shares of BND (Vanguard Total Bond Index)
Bought 22.6207386 of IVV (S&P 500 Index)
We began this monthly update by alluding to having one position that truly stunk up a portfolio. The reality behind stock picking is