Here comes the June rebalance of the SIA-Style Pension Portfolio (PP).
The rebalance
PP had an appx. 10% equity allocation as of end of May 2020, which is the middle of the Contraction-eligible range for a SIA-style portfolio. As I have mentioned in a more detailed description of the current state of markets in my rebalancing post of the Global Leaders Portfolio (GLP), the volatility has been mostly contained by continous efforts of both the Fed and the Trump administration and macro data do show positive surprises recently. Even though the resurgence of the Covid-10 cases in some of the US states is still worrying for the markets, the general mood is to buy the dips.
I have effectively purchased both SPY and EEM for $4k each this month, to adjust the equity allocaiton of the PP closer to the maximum 20% treshold.
The anchors of the GLP performed as follows in June:
TLT changed only slightly, adding 21bps for the month. Stabilisation on the global markets caused less of a demand for safe havens like long-term US Treasuries.
GLD gained 2,74% in June. Actually, as of June 30th, Gold sport price got pennies away form the very crutial long-term resistance level of $1800/ounce. Below please see a 20-year graph of Gold (XAU):
Portfolio holdings are traded at the closing price on the rebalancing day presented by www.morningstar.com (which may differ from official closing prices given by appropriate stock exchanges).
Current structure of the GLP can be found on Portfolios page.
Total Personal Return since inception (TPR) o GLP as of close 30th June 2020: +1,3%.
Next update in a month.
Yours,
PC
Disclaimers: None of the ideas, views and thoughts presented here shall ever be taken as a recommendation to buy or sell stocks,bonds,FX,commodities or any other financial instruments as stated in REGULATION (EU) No 596/2014 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC or the Regulation of the Polish Minister of Finance of 19 October 2005 on information constituting recommendations regarding financial instruments, their issuers or exhibitors (Journal of Laws of 2005, No. 206, item 1715) or the Polish Act of 10 February 2017 amending the act on trading in financial instruments and some other acts. The article is for educational reasons and purely presents private views of the author, thus the author shall not be claimed eligibile for any losses of a third party resulting from trading activities based upon this article. The author uses his best knowledge and data from sources believed to be reliable, but makes no representations as to the accuracy of the data.Full Disclaimers&Liability Limitations page.
