Our personal portfolios, 4/22/19

People who write about their market opinions should publish their personal results. Below, you can see my core portfolio annual rates of return as reported by TD Waterhouse yesterday.

I will occasionally publish with comments, our core portfolio and our “fun” portfolio holdings and the activity which took place on Monday. Following holiday Mondays, we will publish this information on Tuesdays.

Rosi has her fun skiing, cycling in the skiing off-season, making muffins, walking our dog, reading, making our travel arrangements and spending time with our grandchildren. She does not have a fun portfolio.

Fun Portfolio

Last week, ABBV covered calls expired so I was able to write covered calls again. I sold ABBV calls, expiry date April 26, strike price $US79.00 (just out of the money) and got $US1,300.00 per contract – a new high.

This could be the unusually good opportunity which I might apply to our core portfolios but we are in Barbados where I will speak about investing at this years’ Caribbean Dental Program. I will wait for better internet connectivity when we return.

My fun portfolio suffered a serious loss when I committed all of it to ABBV, the underlying, which tanked soon after. Since my fun portfolio makes up only 5% of Rosi’s and my market holdings, it cannot have a major impact overall.  It could, however, come up with an unusually good opportunity which we could apply to our core portfolios.

Core portfolios (all are tax-advantaged)

Following Paul Samuelson’s advice (Samuelson is an economics Nobel laureate) that investing should be like watching paint dry or grass grow, we maintain a 50/50 asset allocation with 50% in a US money market fund (TDB166, now paying 2.24% annually, down from 2.25% last week) and 50% in the Guggenheim S&P 500 Equal Weight ETF (Symbol RSP) with no changes from the previous week. That 50/50 asset allocation equals the market over the course of a market cycle (peak to trough to peak) with half the volatility, that is, half the risk.


Dr. Milan Somborac

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