I know, by this point, you expect that when something from me hits your inbox you’re going to have to read 70 pages. Sorry to disappoint here (readers, breathe a collective sigh of relief, that’s coming later towards the beginning of December and I promise it’ll be…comprehensive).
This is the time of the year when I start thinking about the coming year, and preparing my book for that. Because of that, you may have noticed I’ve alerted subscribers to a lot of changes to the core portfolio in the chat - something that has happened perhaps twice otherwise since May. I have had a few messages about posting a revised portfolio, but wanted to wait until I was comfortable all the changes I wanted to make were made before I did. They are now, so here’s the update!
This update that will contain a recap of core portfolio changes since the last Citrindex article. As I explained in the first article about my strategy, I try to change the core portfolio as little as possible. There are three times when I view it acceptable:
When a new idea presents better return potential than something already in the portfolio
When an existing thematic is expected to stop working or the implementation is wrong
When the overall market regime is changing
Straight out adjustments (i.e. exiting something without immediately getting into something else - “raising cash”) are rare, but happen when I think the market is at or approaching an inflection point.
That’s what’s happened since my Halloween article “Rates-maggedon”, so I figured I’d collect all in one place the adjustments/rebalancings since the last Citrindex article that I’ve alerted subscribers to in real time on the chat.
Here were the rebalances during the month of October, since the first update - remember that anything I publish long-form gets equally weighted in the portfolio (i.e. if there are 7 articles, each basket/play gets 14.28% weighting on rebalance and then is not touched until the next rebalance).