Wednesday, September 11, 2019

Outlook for September 2019

August turned into a disaster for a lot of investors as the markets are roiling in trade war updates, resurgence in negative yielding debt, and other political issues. The flight to safety seems to be name of the game, as bond interest rates fall further and investors load up on gold.
The rate cuts are abound from central bankers around the world. The one central bank that is outlier, Bank of Canada, is also expected to turn dovish in coming days.

Outlook for September 2019

As the gold market starts its bull run, I have been enjoying good gains over the past few weeks/months. As I have an overweight position in gold exposure that I built up in the last 1-2 years, I don’t expect to do much except potentially sell and book some gains. I am reminded of Jim Grant’s famous quote:
“Successful investing is having everyone agree with you………..later.”
– Jim Grant
Work on portfolio management is never complete when it comes to investing. There is always the future to worry about and look for best available opportunities.
I intend to remain focused on high-quality companies & high-conviction investment ideas. In my hunt for deep value, I have ended up with some weak companies that are cluttering my portfolio. I am slowly going through the cleanup activity and expect to have this completed before the end of the year.
As I revamp my portfolio, I am also paying closer attention to position sizing. I intend to structure my portfolio so that I have enough weightage on appropriate securities (there was a bit of an imbalance in the past) going forward. You can track my recent buys and sales here.
As of Aug 31, 2019 our portfolio is diversified as shown below.



Looking for investment ideas? Check out this Top Investment Picks for 2019, where 30+ investors present their top pick and a reason to invest in those securities.
I have also started putting together a series of posts for Investment Ideas, where I explore different ways of looking at companies and finding inspiration for further research.
What are your thoughts on the points mentioned above? Do you have any specific thoughts on the markets and looking at anything interesting? Are there any stocks that you believe is a strong conviction buy here? Share with a comment below.

Full Disclosure: Our full list of holdings is available here.

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