Current Views
Last Update
Current Positioning: April 30, 2024
See the WAM channel here and/or the WAM Trade Log chat here for strategy updates between WAM Home Page updates, as this page is updated less frequently than actual positioning.
WOTE US 60/40: 80% SPLG, 20% BIL
WOTE US Long/Short Equity: -300% equity exposure via SPXS
WOTE Special Ops: May 31 SPY $509p and May 1 SPY $501p.
WOTE US Core Equity: See image below.
Performance
See prior discussion here.
Strategies
These are my four US-centric personal investment strategies.
WOTE US 60/40
Benchmark: 60% SPY, 40% BIL
Discussion: The WOTE US 60/40 strategy is designed to isolate my performance over- and under-weighting equities versus fixed income in the context of a US 60/40 portfolio.
WOTE US Core Equity
Benchmark: SPY
Discussion: The WOTE US Core Equity strategy is designed to isolate my performance in equity sector selection in a fully invested US equity portfolio with a SPY benchmark. This portfolio would typically comprise the equity portion of the WOTE US 60/40 portfolio, but for performance reporting purposes I want to break the investment process into its component parts.
WOTE US Long/Short Equity
Benchmark: SPY
Discussion: I do not short individual equities, so the vast majority of the short exposure in this strategy is to indices and sectors, but primarily the key indices SPX and NDX. When 200-300% long exposure is warranted (see below), the strategy will be aggressively long select sector ETFs and individual securities.
Because the benchmark is SPY (and not cash), the strategy is allowed to go 300% long in order to be consistent with the ability to be -100% short. In other words, if we’re -100% short and SPX rises by 10%, then we’re trailing SPY by -20%. Likewise, if we’re 300% long and SPX drops -10%, then we’re trailing SPY by -20%.
As discussed in the April 21 WAM strategy note here, in volatile trading environments such as what we are in now, I will shift the Long/Short strategy into trading mode using the Special Ops positioning framework.
Benchmark: SPY
Discussion: Highly tactical, aggressive strategy. A tiny part of my overall portfolio, but is a useful reflection of my cyclical and tactical views of the equity market.
Positioning Framework
Disclaimer
NOT FINANCIAL ADVICE
The Weight of the Evidence (The WOTE) newsletter (inclusive of anything and everything publicly and privately associated with it, no matter how tangential) contains the author’s own thoughts and opinions on financial markets. The WOTE is for educational and entertainment purposes only and none of the content or ideas should be taken as financial advice. The author is not responsible for any financial gain or loss that you may incur by acting on the information provided. You are solely responsible for making your own investment decisions and should do your own due diligence in regard to opinions and ideas on the markets to form your own personal view and form your own trades. For investment or financial advice, consult with a registered investment advisor and/or financial advisor. By reading The WOTE you are agreeing to these terms, and acknowledge it is for sharing the author’s thoughts and opinions on financial markets. Your trading and investing style, preferences, and risk management may significantly differ from the author’s.