The updated monthly asset allocation table is now available here.
There is virtually no change compared to last month. The only notable elements are an acceleration of the positive trend in emerging countries and, on the contrary, a decrease in the positive trend for gold (but the yellow metal remains well oriented).
Emerging markets are really enjoying a very good dynamic, with more than attractive valuations. I started investing in them at the beginning of February, eager to get back in after several months of staying away due to a downward trend. Today, it is one of the most promising markets in which to invest. I have not presented you with an analysis of these securities because for the moment I have invested in them using a method purely mechanical and quantitative.
Since the beginning of this year, however, I've been far behind the performance of the American and Swiss indices, which are breaking records. It must be said that, even though my target allocation currently includes 14% of cash in total, I'm still well above that, with 40% of liquid assets. It's therefore difficult to compare with stock markets that have gone into orbit. Fortunately, emerging markets allow me not to fall too far behind.
Furthermore, I put this poor performance into perspective by telling myself that:
- The SPY and the SPI will eventually undergo a correction, the question is how big it will be.
- my share of cash, gold andreal estate will be a good shock absorber in this case
- I am starting to find some great opportunities not only in emerging markets, but also in Europe and the UK
- These opportunities are extremely lucrative in dividends, unlike what happens in CH and the USA
- The negative trend in Japan will eventually reverse and offer an incredible amount of undervalued securities
Value investing can be frustrating at times, especially when the market is in a speculative bubble phase. However, it's often when we begin to doubt it that it becomes extremely efficient. So, watch this space...
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What quality UK stocks do you currently find interesting, apart from financials and real estate?
So far, I haven't found any stocks that align with my usual strategy. However, as part of my mechanical-quantitative approach, I've taken a few positions on the London market: AAZ, HGM, ACA, and BDEV.
The first three are mining companies (mainly active in gold) and the last is a leading real estate company in the UK, which pays a nice dividend.
Cash or no cash… that seems to be the question… https://www.investir.ch/2019/04/ne-regardez-pas-encore-mais-on-est-tout-pret-du-plus-haut-de-tous-les-temps/
I like it when he compares to 2000.
I find there are a lot of similarities.
And I speak from experience…
Thanks for sharing. Interesting.
In another register, this extract makes you think:
"At a time when so-called "algorithmic" trading and machines represent between 60% and 90% of the volumes processed daily across different asset classes, it must be remembered that transactions initiated by a "human" decision are very much in the minority."
This really makes you think, and it's an opportunity for us! Since we're a minority, we can play differently than the machines, with different rules, especially, and above all, with a long-term perspective.