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Reviewing 5 of our worst positions as we consider restructuring portfolios into 2022

This is the time to be focused on our portfolios as we can see some trends maturing fast into 2022 making us likely to be more active than usual across our portfolios in the coming months hence its important to be prepared and understand our rationale if / when we act. Today I have focused on our closely watched Flagship Growth Portfolio and 5 of the laggards under our watch as we reflect on the classic market adage – “run your profits and cut your losses”. Unfortunately when companies come out with downgrades it can be hard to exit at optimum levels as they tend to gap lower, a few of the 5 stocks looked at today have done just this, the question today is if / where we should look to exit them as we look to increase cash levels over the coming months.

One of favourite sayings is trade / invest to sleep, something for example I certainly wouldn’t be doing well if I had much money tied up in Bitcoin but I undoubtedly would be more comfortable if we weren’t carrying all of the stocks covered in today’s report, we may have enjoyed a solid year but these positions have been the major detractors on this portfolio’s P&L.

It’s important when looking for potential exit points for underperformers to recognise that they often bounce but downtrends do have a habit of lasting longer than many expect. In contrast, the NASDAQ has shown the complete opposite trend as it continues to recover from pullbacks through 2020/21 – for the record we feel 2022 is likely to deliver a correction more in the order of 15-20% for this particular index, all we have to do is to pick when it will start!

MM is mildly bullish stocks into 2022
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US NASDAQ 100 Index
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