Hi Just wondering how other Self Funded Retirees have been managing their portfolios in recent weeks. On the 20/2/20 I held cash 30% and shares 70%. By the 9/3/20 I had increased cash to 75% and shares 25%. I held this allocation until mid April. Since then I have been buying more shares and my current position is cash 20% and shares 80%. I re-purchased some shares, that I had previously sold, at a lower price than I sold them for, but not near the lowest point that they fell to - e.g. MNY;CWP;PTB;PSQ;MYS;SUL; BAP;GUD). I also added more health stocks, because I regarded my previous % allocation to health stocks as being too low. The prices I paid were also not at the lowest price they fell to (e.g SHL; RHC; IDX). A couple of holdings I re-purchased at approx. the same price that I had sold them for (e.g. API; JBH). I also added some shares that I think will have short term difficulties but good percentage upside with economic recovery (e.g. HVN; APE; ARB; AZJ; TWD). I will allocate the remaining cash to shares, most likely before the end of June 2020.
To state that I have found investing with the Covid-19 problems difficult would be a massive understatement (but my holding in DEG has been giving me something pleasant to look forward to). I decided to buy back into the share market for the following reasons: (a) I am now very confident that there will be an effective Covid-19 vaccine by March 2021 and with vaccine news updates well before massive commercial availability - by that time many good to fair purchase prices will no longer be available (until the next crash); and (2) many Governments, having significantly reduced the curve of infections and death rates, are and will continue to decide that a morally difficult, but necessary decision, is to continue with suppression plus lock down of local outbreaks, accept a low death rate, but higher than the standard flu, and open the economy.
I could be wrong but I have re-balanced my portfolio - now better balanced for the long term than it was before Covid-19. Regards Old Fisherman
