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On Monday the S&P opened with a 6% loss. At that time our portfolios were defensive from our trades the previous Thursday. Our tactical  management approach has allowed us to sidestep a significant portion of the  9% correction in the S&P with minimal impact to our accounts. 

This week, having met our expectation of a near 10% decline, we made the decision to start adding equity exposure back into our portfolios.  On Wednesday we moved our large cap, U.S. stock exposure up across all model portfolios, elevating positions from 30%-35% to 45%-50% depending on risk tolerance.  We also added exposure to China in select portfolios and  continued to hold our positions in emerging market equities. 

We were anticipating a short term rally in the market to levels near 2000.  Following that we were prepared to return to a more defensive posture.  

Yesterday, we realized that recovery and we took advantage of the upside volatility by selling all our emerging market, gold miners, and oil positions. We also decided to sell 1/3 of our U.S.  stock exposure.

Our current allocations are again more defensive, with roughly ½ of our typical equity exposure. Depending on the risk target, our portfolios also contain exposure to China, energy, and some fixed income. We anticipate continued volatility and will look to take advantage of any opportunities we see.  

This commentary on this website reflects the personal opinions, viewpoints and analyses of the Gainplan LLC employees providing such comments, and should not be regarded as a description of advisory services provided by Gainplan LLC or performance returns of any Gainplan LLC Investments client. The views reflected in the commentary are subject to change at any time without notice. Nothing on this website constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Gainplan LLC manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.

Categories: Industry Ideas, The Market

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