Balanced Portfolio - Defensively positioned
Date: 05/8/2024
*** GENERAL AVICE ONLY***
A minor equities panic has started to spread across global markets in the last few sessions as investors grow increasingly concerned that the US economy will go into recession.
To reassure you, the MPC Markets Balanced Portfolio is defensively positioned and while we are still not immune to the broader market weakness, we have been wary a move like this could happen
The balanced portfolio currently holds
- 5% cash
- 13% in Fixed income (Banking Hybrids ETF)
- 6% in Gold miners (Traditionally a safe haven asset)
- 5% in Silver (Historically a very good performer in rate cut cycles)
- 5% in BBUS – a 2.5x leveraged “Short ETF” that actually rises 2.5% for every 1% the S&P500 goes down. Meaning you actually profit from a market downturn
This means that 38% of our current portfolio is defensively positioned
*** Trade Plan ***
Holdings we have earmarked to exit are:
- 4% Nufarm (NUF) – another stock we have had multiple times this year, at current prices, we are only down 5.5% for the last 12 months. This will be exited in the next 2 days if market weakness persists
- 1% Paladin (PDN) – We have made over 23% in this stock this year, even selling the 1% “tail” at current prices.
- Resmed (RMD) – our most recent buy Resmed (RMD) is actually the best performer on the ASX up 5% after 3 broker upgrades. We are +10% in profit at current levels in just 1 week
These sell would bring us even further to cash and nearly half of our portfolio (48%) defensive
If you have any concerns or are worried about the market, please don’t hesitate to call Mark, Jonathan and Kai at any stage.
Current Balanced Holdings
Disclaimer: The recommendation given is general advice only. It does not take into account your personal objectives, financial situation, or specific needs. This information should not be your sole resource when making such decisions. We strongly recommend you to seek the advice of financial, taxation, and legal professionals before finalising any investment decisions.