Last week the portfolio saw a decrease in overall portfolio equity (-2.6%) due to severe weakness in major markets (SPY -3.7%). Fortunately TLT protected us somewhat from the overall market weakness. Unfortunately GLD showed weakness as well.

WFM will be replaced by BIIB for the coming week. Next weeks portfolio/risk profile:

With such an asset allocation setup it will be difficult to outperform a possible strong stock market. However out-performance is likely to be seen in a sideways or down move in the equity market. Also for the coming week(s), I expect we will see the markets being dominated by news coming from EUROPE.

Before / after Thanksgiving the market has showed positive momentum historically. Most market participants are very pessimistic about the future, so they are likely positioned for a down-move. Often times this marks a turning point. I don’t want to call a new bull market,but it makes me THINKING when the BIG boys investing BIG money in the stock market.

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Disclaimer

These are the trades I’m going to take for the coming week. In case you consider mirroring my trades make sure you do your own homework upfront in order to match your personal risk profile (no investment advice). Performance data quoted represents past performance. Past performance is no guarantee of how the portfolio is going to perform in the future.

– Frank