What changes (if any) do you plan on making to your portfolio in 2023?
Why are you making (or not making) a change in 2023?
Overall, I'm relatively pleased with my current portfolio positioning.
My stable value fund was exchanged for DOXIX on 12/30/2022 since bond yields have increased significantly.
Dollar-cost averaging into my 401(k) and HSA accounts will continue for MIEIX "clone" and PRILX respectively.
I plan to purchase additional shares of VPCCX and VPMCX (up to annual purchase limits) later in the year.
Some of the cash remaining in money market funds/T-Bills will be redeployed.
There are no concrete plans for this cash but I'm considering TIPS, munis, and small-cap/mid-cap foreign equity.
My portfolio doesn't have any dedicated exposure to these three investment categories.
Otherwise, stay the course. Defer taking distributions long as possible this year. I do think Price’s TCHP (ETF version) or TRBCX (mutual fund version) look like very good long term holds after falling 35% or more in 2022. On the radar, but it would take a much lower NASDAQ before I’d commit any funds to one of them.
Non-topical perhaps … Also planning to take in some Broadway shows and spend time on the beaches at Hilton Head in coming months. You know what they say about “All work and no play …”
In order to cover the spouse-person's most recently communicated priority, I'll be starting a TIPS account, while their landscape looks quite positive. Looks like that $$$ will get slud into SCHP.
Dizzy Dean: "He shoulda slud into 3rd, but he didn't, and he was out by a heifer's step."
Otherwise, I'll keep things rather the same. I'll add to equities if/when things go south. Our investing time-horizon is lengthy. If one or two single-stocks on my watchlist falls far enough to look attractive, I'll start a position there. (FNLC. CMTV. TGH. BBVA. WFG. SCHN.) But growing the TIPS will be at the top of the list, until that puppy rolls over. We do not need to obtain that newest priority-item for several years, at least--- the item that the TIPS account is intended to address. I don't want to be so spread out that I'm actually "de-worse-ifying."
PRISX will be held at a greatly-reduced level. (DAWG!)
PRNEX will remain in the portfolio.
Here's hoping PRFDX will do as well for me in '23 as it did in '22.
PRWCX and PRCPX and TUHYX round out the mutual fund section of the portfolio.
Today is the first trading day of 2023. My holdings which bucked the fall in the Indices are the ones I own the least of: PSTL. JRSH. The others, I still think, are worth keeping: BHB. NHYDY. ET.
You noted: ARKK....yes? What is the 'no longer identify specific stocks' part mean? Referencing to what is held inside the etf?
In retrospect, I had a reasonable 2022 considering a 96% equity position, with a -9.1% effort. The stocks did well, with the CEFs/ETFs less so other than kicking off a solid dividend stream. My 6 chosen OEFs are certainly hoping for a better year. I'm looking for a recovery over the next 12 months, but I'm doing very little different..adding to a few items which contribute to the dividend production, but nothing significant in terms of shifting the portfolio.
Keep buying sp500 mid caps qqq small caps and 2055tdf/ 57k sep-ira contributions... ..extra cash go into Corp bonds
As noted earlier, the stock picked up today is one that Cathie Wood holds in her (ARKK) fund. That fund fell 68% in 2022, so that ought to provide a glimpse into the highly speculative nature of what I bought.
Wood’s holdings have been pretty much beaten-up across the board. So, it might be productive for others to pick through them and see if there’s anything in there they know something about and might be interested in owning. Also, I wouldn’t be averse to owning a bit of ARKK (but don’t currently).
(Thanks for catching the typo @Crash & @catch22 - which I’ve corrected.)
Actually, thanks even more guys for reading what I wrote.
Okay. Thanks. I thought you were referencing the holdings within ARKK as a total. I understand about keeping choices private.
Cash from my wife's inheritance is sitting in a MMF, no hurry to put to work with interest at a bit over 4% currently.
Trying to decide if we will keep TRP Floating Rate Fund PRFRX as I've noticed outflows in a number of FR/BL funds since mid-year or so. Smart money getting out early in advance of a possible recession which these types of funds don't like. Hard to walk away from 7.46% interest, but downside can be much higher. Hmmmm?
Consequently, I am not increasing equity exposure, except maybe to Deep Value funds like PVCMX where I can count on the manger not being fully invested.
There is a lot of talk about the "undoing of globalization" and "multiple wars"
( I know Roubini is a perma Bear and disaster maven, but worth listening to)
which coupled with high interest rates will continue to pressure the winners of the last decade, ie Large Cap Tech. At the same time it is likely that there will be continuing event driven increases in prices of commodities like foodstuffs and energy, as instability prevents them from being easily moved to consumers, regardless of demand.
An 11% allocation to Energy saved my bacon last year and we are basically flat for the year. I don't see any reason to dramatically decrease energy.
As an early retiree, I am much more content to miss a big upside, than to get caught in a dramatic continuing bear market, so my equity exposure is probably lower than most here, with over 60% of our portfolio in Treasuries, CDs and Munis and 5% Gold.
Working now to figure out best and easiest way to add TIPS. Will probably start with SCHP or TIP and buy some bonds at the next auction, along with my allocation of I Bonds.
If there is a big correction will DCA back into equities, mainly US.
I'd be glad if someone could break-down the practical implications for TIPS if "higher for longer" with interest rates is going to transpire. Thank you.
From Schwab, 06 Dec, '22 re: FI in '23:
"We are cautious about taking too much credit risk in the face of slowing economic growth or recession. Current yields on riskier bonds, such as high-yield bonds, don't provide extra compensation for the extra risk, in our view. That may change as the year progresses, but for now we are neutral."
They are recommending high quality stuff with middle durations.
Charts make my head hurt. Anyway, I'll not add to my junk stuff, but continue to reinvest divs. it's a long-term play for me. Adding the TIPS in my brokerage account will serve to reduce risk at least somewhat.
A next level of optimism would prob'ly lead to positions in allocation funds like CTFAX and/or WBALX, a conservative equity fund like PVCMX, and possibly an alt fund (long-short equity?) at least somewhat in synch with whatever the situation turns into.
About middle of the year, roughly half my T bills will have matured and I'll need to have a new allocation plan in place. Not particularly optimistic that there will be safe yields then as high as they are now, and I bought a slug of them in November and December, so won't likely be adding significantly more now.
Good luck out there. AJ
Being retired gives me lots of time to mull these things over. Especially since the fish have all gone south.
Looking for opportunities to buy in the taxable accounts where we still have large cash positions.
Hope to leave the taxable accounts to the kids. What we have in taxable was largely left to us. We do realize some income. But we haven't had to touch the principal.
Haven't had to touch the principle in the IRA's either. I will be taking some cap gains from mine.
"Thanks to OJ, I bought a small amount of ASML"
I deny everything. I have no recollection of even being there. Someone else hacked my name. The Secret Service erased all my emails. I had been drinking and didn't realize what I was doing. Also, I take the fifth.
I deny everything. I have no recollection of even being there. Someone else hacked my name. The Secret Service erased all my emails. I had been drinking and didn't realize what I was doing. Also, I take the fifth"
Did you mean to say, I drank a fifth ?
Have a good week, Derf
My fav is Lagavulin, but I will choke down McCallan if I have to.
Unfortunately, since Covid I have had to, as I can't find Lagavulin 16 anywhere
But back to the topic. No drastic changes for me. I'll sit at about 45-50% equity. I did start adding to my gold ETF, IAU and I've been giving a lot of thought to taking a position in PRPFX. Haven't owned it since 2010ish. (@hank, do you still own that one?)
Also started buying some of the best companies in the world, Microsoft, Amazon and Google. Not huge amounts. They may go lower in the short term, but they haven't been valued at this price in a bit.
1. Reduce cash to increase intermediate-term investment grade bond exposure.
2. Maintain decent exposure to energy and commodity futures and pay attention to China reopening and industrial output (they are #1 in oil consumption)
3. Increase developed market exposure and watch for US dollar index movement (for on-USD hedged funds)
4. Add more value, utilities, consumer staples and health care funds/ETFs as defensive positions in case of recession
5. Sell off treasury bills and CDs as they matures
6. Be patient with alternatives funds.
This defensive portfolio may likely to lag if the market move strongly upward. But it will survive if we have another drawdown as in 2022.