08 July 2014
Last month we wrote about how “Sell in May and go away” did not work and for those expecting a correction…June would have to be the month something finally gives. Alas, for those in the bear camp we saw no such thing as a “June swoon” and the correction that has never come is still lurking out there somewhere. Everyone has telegraphed it by now and the longer we go without one the more severe it could be….or will it?
More importantly, is it even worthwhile trying to prepare for it? Can you prepare your portfolio for a market correction like you would your house for a natural disaster like an earthquake or a hurricane? Sure…you can but should you?
“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves." –Peter Lynch
Here’s the current summary of the MPG Core Tactical 60/40 portfolio mix, which is updated as of this writing (July 7, 2014):
Click here to compare our portfolio against the benchmark
What adjustments did we make?
As usual we enjoyed several dividends hitting the portfolio. Although we believe it’s futile to think one can prepare for a correction, we continued to whittle down positions we’ve done well on (profit taking) and added one that could bring some additional momentum with it. The two sells and one buy we made were