Strategy Update: Getting More Aggressive

Even being as conservative as I was this year, the Investments in Play portfolio performed on the downside and the upside. At the end of March, the portfolio was down almost half of what the S&P closed out the month: -10.80% vs. the S&P’s -20.00% loss.

At the end of the year, the portfolio closed 2020 with a whopping +43.31% gain, nearly tripling the S&P 500’s +16.26% gain. Of course, the Speculation in Play portfolio locked in an additional 10%+ in gains, closing 2020 up +53.75%. However, that extra gain came with a lot of risk with the portfolio taking part in put spread options as well as jumping in on some positions that could have potentially gone to zero.

It’s worth noting that the entire Speculation in Play portfolio is nearly 1/20 the size (5.162%) of the Investments in Play portfolio. Accordingly, a more risk-averse approach must be taken for the portfolio’s size.

Looking forward to 2021…

With the presidential election and so many potential negative news catalysts in the last-half of 2020, my buying price targets were extremely conservative in order to protect against a potential test of March’s lows.

Now that we have multiple vaccines in distribution and the potential for an economic reopening by Summer 2021 as well as new stimulus and eviction moratorium extensions, I’ve started becoming more aggressive, raising my buying price targets for many of my positions.

In 2021, I will be looking to add to all of my positions during any significant selloffs while still capitalizing on upside profits where necessary. For the moment, I have no plans to change my core positions, but who knows what the future holds?

Thanks for sticking with me through this historically volatile year, and I hope you come back to follow Investments in Play in 2021.

HAPPY NEW YEAR!