Ending February in Good Shape

I’ll crunch the numbers over the weekend, but as of Friday Noon, 2/28/2020, our balanced portfolio clients will finish February up nicely year to date while the S&P-600 looks like it will finish the month down about 6% or so. The aggressive portfolios are remaining aggressive (you know who you are).

It has been a wild ride for the general markets, but we avoided most of the carnage when I sold all of our SPY(S&P-500 index ETF) and half of our IYR (real estate index ETF) a couple of days before the crash. You can go back to the blog I wrote that day and see the reasons I pulled the plug.

Today, I sold the gold and the US treasuries because they have been rocketing upward until today. I think people are beginning to sell whatever they can to raise cash to cover their margin calls on stocks. If this theory is true, we may have a couple of waves of selling left to ride out, except now, everything will be sold (not just stocks).

Looking forward, we now have 75% of the portfolios in cash, 10% back into SPY, as of this morning, some real estate (IYR), and some silver (SLV). We are in great shape to ride out the storm, sitting on nice gains for the year, and plenty of “dry powder” to take advantage of lower prices and lower volatility.

I’ll make a point of sending out 2020 Year-to-date performance reports next week, so everyone can see exactly where they stand through the month of February.

Have a great weekend.