Stocks Rally at the End of March

We are finishing March focused on managing risk (volatility). We avoided the worst of the crash by (for the balanced portfolios) selling all of our stocks and half of our real estate before the crash began. The timing was fortunate, but not pure luck, because I was very concerned that the covid-19 virus would cause more problems than were being reflected in the markets.

Now, we are about 60% invested, with 40% in cash, since the daily range of movement (volatility) is beginning to taper off. The 60% is invested in a modified version of the standard portfolio. Instead of the SPY ETF, I’m combining the Vanguard VTI (total US stock market) and XLU (the US Utility sector paying 3.4% dividends) for the stock allocation. I’ve completely removed the real estate sector from our portfolio for now, since it is unclear how many landlords are going to go broke because the tenants (commercial and individual) can’t pay the rent. Finally, the gold allocation is actually split between gold and silver ETFs.

If volatility continues to taper off, I’ll continue to invest cash in our “crisis” model until we are fully invested again.

Stay safe and have a good week.

Dale