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+--- Thread: Portfolio structure plus YTD performance (/showthread.php?tid=426)
Portfolio structure plus YTD performance - hendi_alex - 03-04-2014
Just did a quick overview of the portfolio. Approximately 33% of holdings are in long term positions where no calls will be written. The other 2/3 is 100% covering calls about 37% of which is currently 'in the money'. Upside is severely limited with this arrangement, but risk is somewhat mitigated and cash flow is dramatically increased. YTD the portfolio is +1.8% and is sitting at a new all time high when adjusted for withdrawals.
RE: Portfolio structure plus YTD performance - Kerim - 03-05-2014
Hey Alex -- does the "severely limited" upside reflect a general bearishness on your part, or did the portfolio just evolve that way with your emphasis on covered calls?
RE: Portfolio structure plus YTD performance - hendi_alex - 03-05-2014
Some of both, but as the cash account grows, holding only long term positions, the ratio will shift over time. I'm mostly very bearish, as IMO too much of the current economic activity and corporate profits are a result of the fed's printing funny money and as a result of their artificial low interest rates. Couple those concerns with a variety of world wide issues leads to my view of this being a frothy market. P/E's look good because of artificial profits. When the punch bowl gets pulled back, both industry and the markets may suffer serious withdrawal symptoms.
RE: Portfolio structure plus YTD performance - rnsmth - 03-06-2014
Just looked. We are up a little since the end of 2013, about .25% Sure wish I had received more divvies to reinvest during the little dips we have experienced.
My game plan is the same for up, down and sideways markets. Own strength and reinvest the dividends for a few more years