- How you should think about the Gamestop mania from the perspective of a risk parity strategy and sensible investors
- Scaled down Bitcoin and stocks toward aimed allocations. Bought more Long-Term Treasury Bonds (both EUR hedged and non-hedged)
- Monthly Update for January 2021
- Book tip: The Changing World Order by Ray Dalio (link at the bottom of the article)
- In case you missed it: My annual review of 2020 (titled "Never Let A Good Crisis Go To Waste"), filled to the brim with the best posts of the year, predictions for 2021, and review of my portfolio through the year
It is with a great portion of excitement that I have now sat down to finish up the first monthly portfolio update of 2021!
Good to have you here with me to review the month. In this new year, most of these monthly updates will remain familiar, but I have included some new features. Mainly, I have added a few more graphs in the portfolio review segment, which in more details shows the daily performance of my portfolio (also with comparison against the S&P 500) on a rolling 3-month period. I hope this will be a helpful tool for you when contemplating replicating a risk parity strategy.
The greatest news that has made the most headlines in January (besides the Capitoleum protests) has obviously been the short/gamma squeeze in GME and other heavily short stocks, as constructed by a group of Redditors in the subreddit r/WallStreetBets.
I am confident that you have not missed this, and perhaps you are already tired of that mania, which has already reached beyond its apex. I will not go into detail reviewing the occurrence itself, as that has already been covered by literally everyone - finance media and independent bloggers alike.
But even though the mania is not really related to the All Seasons Portfolio strategy - or even sensible investing at all for that matter - there are still elements that can be useful for the investor who is better at managing risk. I will therefore not ignore the short squeeze all together but I will focus on a few points that I have identified as important reminders for both sensible investors and FOMO traders.