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Tactical Plays for rest of 2021 and near term

Typically, I'm buy and hold and have made few changes in my IRA's in past 5-7 years. I like to be a little more aggresive/strategic with a % of my 401k. I purchased WOOD and GLTR in January...Previous small positions were in ARKK, FM, SLV and GLD.

Any ideas you have just for sharing purposes...

Comments

  • edited June 4
    I'll stick with my chosen funds. Finally, circumstances are presenting me with the chance to dabble a bit. ENIC, a Chilean electricity provider is at 52-week low, after the election. 7% div.

    Bombardier BDRBF.
    You bought WOOD. Watch WFG. West Fraser Timber.
  • No change. Our MFO contributor, @Charles Lynn Bolin has a nice article on June's Commentary, "Tactical Sleeve for conservative mind".
  • edited June 5
    Good question. I’m not seeing anything near term. I prefer to call those “spec plays” anyway. As to “tactical” plays, I scale in or out slowly over months or years. So it’s a matter of portfolio weight or emphasis. I’ve lightened up a bit on the commodities / NR area just because it’s done so well. I’ll continue to lighten up there in “smigits”, but like the area too well to abandon it. BTW, I’ve plugged in PRELX as an (unlikely) substitute inside my real assets sleeve. And it’s beginning to move. A less dicey play on inflation than pure commodities.

    I’m looking at what to add at Fido when I have some money there. Kinda like their utilities fund, FSUTX, which would replace some of my commodities exposure. Last evening I went back and re-read David Geroux’s December 2020 Fund Report for PRWCX. In it he makes a compelling case for utilities (which constituted 10% of his holdings at the time). I’m more convinced after reading that than ever. A real long-shot is Fido’s less than 2 year old Infrastructure fund FNSTX. At only 50 mil AUM, should it pop - you’d make out like a bandit. It’s mostly outside the U.S. Heavily in Italy and Spain for reasons unclear. (Maybe they like olives & wine?) However, that’s a pretty far-fetched gamble. It could just as easily go the other way.
  • edited June 4
    Been trading ~ 2% portfolio in aggressive stocks like Arkk sens anvs past few wks
    Rest in long term vehicles -indexes qqq sp500 dji vti brk.b bac...
  • Earlier in year invested in REMX--both strategically for more int'l/EM exposure and tactically as global demand is increasing for the products of its components.
  • @hank: GLFOX, a global infrastructure favorite, has several of its 27 holdings domiciled in Europe, with Spain and Italy well represented among the utilities.
  • I've been gradually adding to a number of financials over the past few months including GS, JPM, WFC, and BAC. I consider these to be long term holdings though. I'm not planning on trading them. I've also added a position in AVUV -- a small cap value fund. I'm currently evaluating foreign and global large cap core and value funds for purchase. Lynn had a nice article on some good opportunities based on his screens.
  • edited June 6
    BenWP said:

    @hank: GLFOX, a global infrastructure favorite, has several of its 27 holdings domiciled in Europe, with Spain and Italy well represented among the utilities.

    @BenWP - Yes. Thanks! Taking a serious look at that one.

  • Thanks...this is great!
    Crash said:

    I'll stick with my chosen funds. Finally, circumstances are presenting me with the chance to dabble a bit. ENIC, a Chilean electricity provider is at 52-week low, after the election. 7% div.

    Bombardier BDRBF.
    You bought WOOD. Watch WFG. West Fraser Timber.

  • I find very little that I am comfortable with, at present, for a long term buy and hold investment. As a result, I have become more of a reluctant trader, focusing on bond oef categories that are doing well overall, that I think will last at least 3 months, and hopefully longer. I have been using several nontraditional bond oefs for trades--some more risky than others. Recently, I have chosen to open up positions in FR/BL bond oefs, as inflationary issues seem to be growing in frequency. FR/BL do well when interest rates stay flat, or increase, and over the past year FR/BL have been doing well. Nonagency mortgages were outstanding fund choices for much of the last decade, but they can be risky and many of them did not do well in the black swan crash in March 2020, but starting in April of 2020, they have been outstanding rebound investments, and now are settling back into a performance pattern, resembling the last decade--as a result I use funds like SEMMX as a short term aggressive trade choice, but don't trust it for too large of a position. I have short term trade positions in HY Munis, but in general I do not find HY Munis as a category I can trust for long term--when it comes to the fall, around September/October, HY Munis often get clobbered because of seasonal pressures. With HY Munis, I got clobbered early after the March 2020 crash, and so I limit how much I will put into this category, and ususally with a time limited criteria in mind. For my more conservative taxable account, I will use a fund like RPHIX because of its long term performance record, in good and bad markets, but do not use it as a trade vehicle because of fees--RPHIX/RPHYX is scheduled to close to new investors, but apparently stay open to current investors. Another fund I use in my taxable account is the very aggressive short term bond oef, DHEAX. I sold it during the March crash, but bought it back later in 2020, and have held it since. It is risky, and the DHEAX management will not permit frequent trading, so when I own it, I plan on holding it for at least 3 to 6 months--but I will sell it after that time period if market conditions merit that.
  • Great article...lots of good ideas to research! Thanks for the reference...
    Sven said:

    No change. Our MFO contributor, @Charles Lynn Bolin has a nice article on June's Commentary, "Tactical Sleeve for conservative mind".


  • FWIW saying my near-term actions include starting monthly-paying (DRIP'ing) positions in DIVO and LGI (an ETF and CEF respectively) plus add to a few dividend-paying equity positions. Possibly a new position in FT or another utility-oriented ETF/fund if the NAV/discount is right.
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