Well that was a lousy week.
If you were a passive investor then you lost money on both your stock and bond holdings. The only thing that glittered was gold.
If you were an active investor, there was not much going on except the market, so you probably ended up with little to show for the stress endured.
The market jumped up and down with each headline on the topic of Ukraine, although it wasn't especially volatile. For the most part, the sectors followed along.
Notably, while oil remained negatively correlated to the market, it would sell off on good news substantially more than it would rally on bad news. You can either read this as oil pricing in too much risk premium or equities pricing in too little.
In other words, they're probably both too expensive.
In order to obtain a little clarity as to what transpired in our portfolio in such a risk driven week, we'll look at the beta cleaned returns of our positions.
The reopening trades of CCL, AAL and DIS all outperformed moderately, suggesting that this theme remains in play.
Our beaten down stocks of internet companies for buyers of cars and houses had mixed fortunes, with CVNA doing poorly, but our new position in OPEN having a strong week.
It was a quiet week for our China positions.
We sat out the week in our sector portfolio, which seems to have been well justified. Our continued underweight in bonds created another small gain for our 60/40 portfolio.
In David's medium-term portfolio (The Money Game) we made no changes this week.
Closed trades year-to-date = 2
Closed trades that made money = 2
Closed trades that lost money = 0
Closed trades that broke even = 0
An archive of our closed trades is available here.