Responsible Investor Portfolio Update, September 5th, 2020 | $TCEHY $NEM $BK $SYF $CLIX $GRUB $PCG $LVMUY $LRLCY $PEUGF $WBD.MI

At the beginning of the week the stock markets kept going higher as if there was no tomorrow but on Thursday they came to a screeching halt. More importantly, the Friday morning rally did not last long and the week ended with a second consecutive down day. I cannot even remember when we had two red days in a row last time !

While nobody knows what happens next, with the upcoming US presidential election and economies around the world still struggling to pick up, I cannot see governments stopping the support of the stock markets with more “propping” policies. Analysts are raising S&P500 quarterly earnings estimates for the first time since Q2 2018, Factset reports. Only time will tell and we will be quick in raising cash if the downtrend continues.

Despite the end of week selloff the Dow and the S&P500 managed to pull off a nominal increase of 0.24 and 0.16%, respectively, whereas the Nasdaq fell 1.6%. The European stock markets had a similar decline with the Stoxx down by 1.25%; the FTSEMIB retraced by 1.49% and the Copenhagen Nasdaq fell by 2.5%. The Danish stock market currently has a whopping P/E of 32.8 which is even higher than that of the S&P500 which stands at 30.5.

No changes to our portfolio this week. For the second week in a row our best performer was $SYF which is up 23.2% since we bought it and has now overtaken $GRUB. Car-maker UG.PA had a great week and was up 3.8%. Our other tech stock $TCEHY fell 4.7% but the fundamentals remain intact.

On my watchlist there are stocks like $VEEV, $QCOM and $GOOG. This recent selloff can present an opportunity for shopping at more reasonable prices.

The table below summarises the portfolio performance since inception.

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Responsible Investor Portfolio Update, August 22th, 2020 | $TCEHY $NEM $BK $SYF $CLIX $GRUB $PCG $LVMUY $LRLCY $PEUGF $ELC.MI $WBD.MI

This is a market of contrasts. On the one hand we have increasing Covid-19 numbers all over the world and particularly in Europe where infection cases are going back to April-May levels, and on the other several bullish signals, the most recent one to note being the existing house sales in the US which grew by 25% in July – a rate not seen since 2006.

In the meantime the candidacies of Joe Biden and of his prospective VP Kamala Harris have been formalised at the Democratic Convention and the US stock market did not have a negative reaction. In the past there used to be many articles about how a Democratic government would be unwelcome for corporate America whereas positions seems to be more open to a leadership alternative to Trump of late.

It was a mixed week for the stock market: the MSCI World was flat, Europe was down 1.8% (with Italy loosing 2.42% and the Nasdaq Copenhagen a meager 0.12%) and the US indices were up with the S&P500 growing by 0.7% and the Nasdaq by a whopping 2.7%, whereas the Dow ended the week flat. The Dollar recovered about 0.58% over the Euro.

We have made one purchase on the RI portfolio this week, a relatively new ETF which invests in e-commerce while shorting the bricks & mortar sector. It is basically a combination of two other ETFs I have watched (and still own in another portfolio), $IBUY and $EMTY, and goes by the ticker of $CLIX. Thanks to its long and short positions it adds a lot of alpha to a signle investment: it is up 87% YTD, widely outperforming all the US stock market indices.

Our $SQQQ position hit the SL price at the beginning of the week but I expect that it is more of an arrivederci for this hedge. $TCEHY gapped 7% higher and looks like a break-out is around the corner. With gold recovering most of last week’s losses, $NEM was up 2.7%. On our watchlist we have stocks like $HUBS, $JD and $CSGP.

The table below summarises the portfolio performance since inception.

2000821 RIP

If you don’t want to miss my alerts, please subscribe to Responsible Investor or follow me on Twitter. I also run an eToro portfolio which currently has 25 positions and can be accessed via this link.

Responsible Investor Portfolio Update, August 8th, 2020 | $TCEHY $NEM $BK $SYF $GILD $GRUB $SQQQ $SCO $PCG $LVMUY $LRLCY $PEUGF $ELC.MI

Welcome to the ever rising stock market era where nothing that used to matter really matters anymore. One could call it state capitalism.

Another week of growth across the board with the US markets leading the push towards ATHs. With the US presidential election now just 90 days away, chances are that more stimulus and more bubble blowing policies will be implemented. That’s all well and good in the short term, but will happen in the long term ? If momentum is dictating the current market direction, at some point valuations will matter, one would think.

In the meantime our portfolio was basically flat this week due to a couple stinkers, namely $TCEHY -which has been affected by Trump’s attack to Chinese stocks- and Italian Contractor WeBuild which has now dropped below 1.1€ and is very close to my line in the sand. On the positive side, $GRUB becomes our first position to pass the 30% mark, a capital appreciation threshold I use to determine when to have take profit (TP) ready: more on this in future weekly updates.

We have sold our position on $IMA.MI on Monday with a nice +14% profit in just one week ! No other changes to the portfolio this week but there are many stocks on my watchlist, such as $CSPG, $SMSFT and $AMAT.

From this week onwards you will see all the stop loss (SL) prices which have been defined so far. A general rule I follow is to consider a 7 to 10% loss to determine the SL price depending on whether it is a divided stock or not and on the general market performance. The SL price increases if the investment relates to a leveraged ETF. And with every rule, there are always exceptions of course !

The table below summarises the portfolio performance since inception.

2000807 RIP

If you don’t want to miss my alerts, please subscribe to Responsible Investor or follow me on Twitter. I also run an eToro portfolio which currently has 25 positions and can be accessed via this link.