Weekly Market and Portfolio Update
So far we have had a great start to the year, only to give back some of our profits in the last week of January.
Stocks logged their largest weekly loss in three months as markets took a volatile turn.
With increased volatility and markets down by 3.3%, the average investors reaction is to put their head in the sand and hope for the best. However, you and I aren’t average investors, we’re discerning, calm and very good looking (that last one may or may not be relevant).
The Penny Mountain investor understands that this is the perfect opportunity to get out of the slipstream and lean into the volatility. What do you mean, Abdul?
Well, if you’ve ever watched the Grand Prix you may have noticed that much of it seems rather dull. The cars, for the most part, are in tight, straight line formations, bumper to bumper, going round and round the track. Let’s call this passive investing. The focus is on minimising turbulence, optimising for the long.
Then all of sudden, BANG! Volatility is introduced into the equation as the tire on a finely tuned $400 million car blows out, the driver frantically tries to adjust for the sudden onset of chaos, only to be sent crashing into 20 inches of hard concrete, debris flying all over the race track.
Instantly, the herd is thinned out and separated into two groups. A group that continues to play it safe hoping to make it into the top 20 and the few who decide to break out of the herds slipstream and lean into the volatility.
We can call this active trading in times of increased market volatility. The focus is on using our well honed expertise and discerning insight to lean into the volatility and make plays that improve with uncertainty, instead of breaking down. Exciting huh? Wait until you see my strategies.
In this weeks subscriber only edition, I’ll be breaking down the 3 strategies I use to lean into the volatility, maximise profit and come out on top when the dust has settled. Accompanied with practical actions you can take as well as the active trades I am personally making, these strategies might just change the way you look at volatility forever.
See you on the other side! (note: racing leotards not included with strategies)
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Highlights from our Premium Quant-15 Stocks Portfolio, from last week:
Total realised gains from last week +0.26%
One of the out from last week, Alliance Resource Partners resulted in +17.6% gains while Waste Management Inc. resulted in -5.52%
Current Trades:
Three stocks in Silver sector we entered in December, long before WSB reddit.
Twitter Inc. up 20**%**.
Approximately +75% up in these two companies in tech sector I highlighted.
Platinum I exited the position in 4% profit on Thursday last week. But the target is still valid as highlighted in the trade. I will re-enter Platinum at a later date since I wanted to use up the capital for other trades. If you are already in the trade, no need to exit.
I have also taken a position in UVXY as I anticipate a further decline in the S&P 500. That trade is currently up 30%. UVXY , however, is not available to trade for most traders. So I will find some alternative stocks this week and share those.
Happy investing!
Abdul Samad
‘The Wealth Guy’