I didn’t stick to my plan!
The Corona-virus made me divert from my normal stock strategy and I sold stocks for the first time in this portfolio… And I actually bought a small short-position!
This post is all about the Corona-virus in the stock market perspective. I know it is cynical to talk business when people are dying. I feel for these people and I am honestly afraid of how this could affect the world we live in. I hope the worst is over by now, but nobody knows.
The stock market is a reflection of people and life. Right now there has been a long period og bullish markets suddenly abrupted by the Corona-virus.
Markets went down in the last week of February and it was a tricky time to be a private investor.
Even though I am a dividend investor and a strong believer of dollar-cost-averaging the situation was so absurd, that I suddenly changed my strategy a bit: I started selling about 10% of my portfolio and bought a small short-position. This was a good move and I should have sold even more. On the other hand I started to move back into the market to soon when the prices where still plummiting. Time will tell if I have bought the right stuff for a decent price and a good yield. You can see my entire trade history for the past month in the end of this post.
Why did I divert from my strategy?
I don’t have a good answer for this. I sat and read about stocks and checked my portfolio growing around the 20th of February. I can’t say it more precise than I had a gut feeling of the market hitting the top. I started selling a bit but did’nt make a complete sell-off because, I still am a long term investor. I know this sounds hypocritical, and perhaps it is.
In the week following the markets where plummiting but it was (and appears) to be a big and sudden correction more than a more long term bear market. I think we may see some stocks struggle for a long time coming after this – especially stocks related to tourism, travel and leisure like amusement parks and cruiselines but also a general downturn regarding productivity and general demand from consumers.
The results for now
Even though I made some good moves with selling stocks and buying a short position it only slowed down the losses a little bit. The total capital gains of my portfolio was down to 0% in the end of February. It peaked i January at around 14%. The short-position is up 13% but it is only 2,6% of my portfolio.
The cash I collected after selling about 10% of my portfolio was put back into the market in the last week of February and all of these buys are still in negative territory. I have yet to see, if I made the right call on these, but I have always wanted to buy more Pepsico and add Mondelez and Fortum to my portfolio. I also added some aristocrats with Archer-Daniels-Midland, McDonalds, Walmart, Abbot and Hormel Foods.
I definitely added some oil stocks too soon as well as some index ETF’s – The latter I don’t regret, but the oil I was a bit to inpatient with. The yields are good, but I maybe bought a bit to much instead of focusing on quality stocks like Coca-Cola, Microsoft and broad ETF’s. These I will continue to expand my positions in over the coming period as the prices probably continues to fall.
The LONG trade list for the past 40 days:
|Golden Ocean Group Ltd||03-02-20||Bought||25||40,96|
|SPDR S&P Pan Asia Dividend Aristocrats UCITS||03-02-20||Bought||3||43,895|
|Sparindex – INDEX Dow Jones Sustainability World K||03-02-20||Bought||6||169,2|
|Crestwood Equity Partners LP||03-02-20||Bought||4||28,6216|
|Rio Tinto Plc||03-02-20||Bought||2||53,25|
|Restaurant Brands International Inc.||03-02-20||Bought||2||60,73|
|Altria Group, Inc.||03-02-20||Bought||3||46,3988|
|Apple Hospitality REIT Inc.||03-02-20||Bought||7||14,9781|
|Ford Motor Co.||05-02-20||Bought||12||8,2978|
|Hyundai Motor Company Ltd||05-02-20||Bought||4||30,8|
|Amundi ETF Short MSCI USA Daily UCITS ETF||07-02-20||Bought||44||10,716|
|L&G US Energy Infrastructure MLP UCITS ETF||12-02-20||Bought||24||4,327|
|Nokian Tyres Plc||12-02-20||Sold||-4||26,85|
|Chatham Lodging Trust||12-02-20||Bought||6||17,29|
|Leggett & Platt Inc.||12-02-20||Bought||3||45,8|
|Pirelli & C||19-02-20||Sold||-21||4,85|
|T Rowe Price GP||19-02-20||Sold||-1||139,1|
|SPDR S&P Us Div Aristocrats Ucits ETF||20-02-20||Sold||-5||55,6|
|Vanguard FTSE All-World UCITS ETF||20-02-20||Sold||-5||88,8|
|Brdr. A & O Johansen præf. A/S||20-02-20||Sold||-3||394|
|Vanguard FTSE All-World High Dividend Yield UCITS||21-02-20||Sold||-4||52,6|
|Hyundai Motor Company Ltd||24-02-20||Sold||-4||28,1|
|Danske Inv Fjernøsten Indeks KL DKK D||24-02-20||Sold||-8||152,2|
|iShares Euro Dividend UCITS ETF||25-02-20||Sold||-10||21,255|
|L&G US Energy Infrastructure MLP UCITS ETF||26-02-20||Bought||25||4,01|
|Sparindex – INDEX Dow Jones Sustainability World K||26-02-20||Bought||7||162,9|
|Vanguard FTSE All-World UCITS ETF||26-02-20||Bought||2||81,75|
|Crestwood Equity Partners LP||26-02-20||Bought||5||22,4776|
|Lyxor New Energy UCITS ETF||27-02-20||Bought||4||30,2|
|Royal Dutch Shell Plc A||27-02-20||Bought||5||20,75|
|iShares S&P Global Clean Energy ETF||27-02-20||Bought||15||6,545|
|SPDR S&P Us Div Aristocrats Ucits ETF||27-02-20||Bought||2||49,525|
|Hormel Foods Corp.||27-02-20||Bought||3||43,2988|
|Mondelez Intl Inc.||27-02-20||Bought||2||55,2082|
|Leggett & Platt Inc.||27-02-20||Bought||3||39,9879|
|Berkshire Hathaway Inc. B||28-02-20||Bought||1||200,41|
|Anheuser Busch InBev||28-02-20||Bought||2||52,14|
|Vanguard FTSE All-World UCITS ETF||28-02-20||Bought||2||75,85|
|Sparindex – INDEX Dow Jones Sustainability World K||28-02-20||Bought||7||150,75|
|Bristol-Myers Squibb Co.||28-02-20||Bought||2||57,5961|
|Walgreens Boots Alliance Inc.||28-02-20||Bought||3||44,9971|
|Realty Income Corporation||28-02-20||Bought||2||70,2832|
|Cardinal Health Inc.||28-02-20||Bought||2||50,4792|
|Omega Healthcare Investors Inc.||28-02-20||Bought||3||38,7|
|International Business Machines Co.||28-02-20||Bought||1||127,5719|
|Procter & Gamble Co.||28-02-20||Bought||1||107,884|
|The Walt Disney Company||28-02-20||Bought||1||113,6453|
|Wells Fargo & Co.||28-02-20||Bought||3||40,2981|
|SANIONA AB BTU (1 WTS & 1 WTS & 1 WTS)||02-03-20||Bought||2||0,01|
|*Delisted 20200228 (Saniona AB – Rights)||02-03-20||Sold||-58||0|
|SANIONA AB BTU (1 WTS & 1 WTS & 1 WTS)||02-03-20||Sold||-2||0,01|
|*Delisted 20200228 (Saniona AB – Rights)||02-03-20||Bought||58||0|
|SANIONA AB BTU (1 WTS & 1 WTS & 1 WTS)||03-03-20||TransferIn||2||0|
|*Delisted 20200228 (Saniona AB – Rights)||03-03-20||Sold||-61||0|
|Molson Coors Beverage Co.||05-03-20||Bought||2||50,7|
|Genuine Parts Co.||05-03-20||Bought||2||86,3423|
|Exxon Mobil Corporation||05-03-20||Bought||2||49,91|
|Sampo Oyj A||05-03-20||Bought||3||36,92|
|Foot Locker Inc.||05-03-20||Bought||3||31,3687|
|General Motors Co.||06-03-20||Bought||3||29,1081|
|JPMorgan Chase & Co.||06-03-20||Bought||1||108,8|
|International Business Machines Co.||06-03-20||Bought||1||125,76|
|Cisco Systems Inc.||06-03-20||Bought||3||38,63|
|KKR Real Estate Finance Trust Inc.||06-03-20||Bought||5||19,4|
|Vanguard FTSE All-World UCITS ETF||09-03-20||Bought||2||70,47|
|Royal Dutch Shell Plc A||09-03-20||Bought||7||15,914|
|Sampo Oyj A||09-03-20||Bought||3||33,7|
|Danske Bank A/S||09-03-20||Bought||11||93,76|
|Volkswagen AG Ordin. Share||09-03-20||Bought||1||138,5|
|Prudential Financial Inc.||09-03-20||Bought||2||58,19|
|Crestwood Equity Partners LP||09-03-20||Bought||10||10,005|
|Federal Realty Investment Trust||09-03-20||Bought||1||113,775|
|The Walt Disney Company||09-03-20||Bought||1||105,39|
|Omega Healthcare Investors Inc.||09-03-20||Bought||3||35,9676|
|Kinder Morgan Inc.||09-03-20||Bought||7||16,1|