Transcript
Hello, everyone, Welcome to Monday. This is actually pre recorded. I am on vacation, I will be back tomorrow. But I did want to use this opportunity to answer a question that’s been coming up in some of my client reviews, which is simply how do I decide when to make shifts to the portfolio. So I’ll start with my baseball analogy that I like to use. I look at investing like baseball, you got nine players out on the field, and then you’re analyzing the batter, in our case, the investment world here, but the batter gets up and he tends to hit it to the right a lot, then I’m going to make some shifts to the right. All right, well, this particular environment has really created a lot more shifting than I am used to, which also feeds into my flexibility concept, I try not to get married too much to any one concept at any time, because that can get me in trouble.
So being flexible, I’ve added a lot of advanced health care and technology. It’s working great. I mean, the analysis of where that ball is going, they keep hitting it to the right, we keep capturing the returns. So that part is fantastic. But things will change. And we have to have some idea. So I watch what’s called relative strength, which just how well does each one of the pieces of the portfolio do versus the S&P 500. And I specifically look at weekly data, not just the day to day or the hour to hour, there’s too much noise in there for whatever I’m trying to do. But when I do see breakdowns in relative strength on a weekly data, then I’ve got some reasons to make some adjustments, I always keep the portfolios that we’re going to in my computer. So all the time.
So right now, if the reopening stocks take off, I’ve already built the portfolio that I want to go to towards that matter of fact, three phases of that Portfolio: Phase One, Two, and Three that I moved to, if the market falls apart, I’ve already built three phases on dealing with that. So at any point in time, I’m constantly creating these other portfolios that we don’t own yet, we may never own them, but just in case that we have plenty of time to think about it. So anyway, that’s what happens with the adjustments to the portfolio. Generally speaking, I’d rather make fewer than less than more. But you know, this year has been a little bit different than we’d have been able to take advantage of that. So anyway, I want to thank you very much. I look forward to talking to you again tomorrow. Thank you.