Please refer to this image for the second part of this video.
Original Conversation
Original Portfolio Update
Original Comments
Please refer to this image for the second part of this video.
Original Conversation
Original Portfolio Update
Original Comments
14 Responses
If you don’t mind, what is the rationale of SLQD vs PTY?
SLQD has no international, but otherwise similar/slightly shorter duration. It’s a pretty good alternative, no doubt. Expensive, though.
There seems to be a tiny yield advantage of SLQD over short term treasuries. That it is basically a negligible difference to use one or the other?
It’s about 70bp. You do you…
A find it very hard to buy the SPY into one of the most expensive markets in history, in terms of every valuation metric. Seems like it is just all momentum and sentiment driving stocks. But fighting the US market has been a terrible decision the last 10 yrs! 🙂
I totally agree.
I’ve had a terrible last few years doing that. Finally I am just putting my feeling to the side and copying the 2GB OG portfolio.
In a good economy with a relatively stable level of long term rates, valuations can be almost anything. But what they won’t be is low, or even average. By definition they will be either high or astronomical. And money has to go somewhere. We have not produced a single topping pattern since November last year, when this trend started, just all normal retracements to overbought conditions. For a top to form, many conditions need to be in place, starting with a weakening economy. Just not current conditions.
I really appreciate your discussions around the relative value between asset classes such as how the bond market yields affect your outlook on equities and your discussions of how spreads and real vs nominal yields might make one instrument look more interesting than another.
Do you have any recommendations on books or resources that help teach these concepts? I’d love to be able to develop a deeper understanding of how you are coming to the recommendations between asset classes.
All book suggestions are in the excel sheet.
You mentioned the opportunity to sell calls on SPY on a weekly rolling basis, by which I think you mean selling on Monday for expiry the following Friday, and I think you said to look for calls about 2% out of the money, did I get that right?
I would appreciate some details on this also.
SPY hardly ever maintains itself above the weekly Bollinger bands and even if it does for 2-3 weeks, it always retraces. That is why selling calls now appeals to me. But you tend to make peanuts, so 1.5% above the previous settlement is fine, as that is how much it can sustain per week. I will discuss it more in next week’s video, but yes, your concept is right: sell on Friday evening for next Friday expiry.
Curious why you didn’t buy gold today on the 2% dip as laid out in the video. Do you see more downside?
I would not buy it for Original anyway. It has plenty for now. Might swap some commodities for gold at 2570.