All investments carry risk. Historic performance does not guarantee future gains. No content on this website constitutes financial advice, but are only my personal reflections and descriptions of my experiences.

Portfolio Update – October 2020 – U.S. Elections and Risk Off

  • Monthly portfolio update: Fairly stable month (again): bonds recover, while other assets decrease slightly
  • Book tip: Hot Commodities by Jim Rogers (link at the bottom of the post)
  • In case you missed it: Where does Real Estate fit in the All Seasons Portfolio? (post from 12 September 2020)

Hello, and great to have you back for a new portfolio update.

I know that I am slightly delayed with publishing this post, as I usually spend a few hours over the first weekend of each month to write my thoughts and review the portfolio performance. This weekend, however, I just moved to a new flat, and found it hard to find the necessary time to write the update.

Anyway, in September I made some changes in the portfolio. Not big ones, but mainly moving assets from one exchange to another, from LSE to Xetra, mainly for cost optimisation and to get rid of ETFs denominated in USD.

This move only included my gold and commodities ETFs. The gold exposure remains the same (physically-backed, but only a different issuer: Xetra-Gold), but for my commodities, I have changed the underlying tracked index from Bloomberg Commodity Index (BCOM) to Rogers International Commodity Index (RICI).

As the special topic for this post, let me elaborate a but more on commodities indicies before reviewing my portfolio. It turned out to a slightly longer text than first anticipated, but well worth the read, so buckle up.

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Portfolio Update – September 2020 – Which is the Best Commodity Index?

  • Monthly portfolio update: Fairly stable month (again): bonds recover, while other assets decrease slightly
  • Book tip: Hot Commodities by Jim Rogers (link at the bottom of the post)
  • In case you missed it: Where does Real Estate fit in the All Seasons Portfolio? (post from 12 September 2020)

Hello, and great to have you back for a new portfolio update.

I know that I am slightly delayed with publishing this post, as I usually spend a few hours over the first weekend of each month to write my thoughts and review the portfolio performance. This weekend, however, I just moved to a new flat, and found it hard to find the necessary time to write the update.

Anyway, in September I made some changes in the portfolio. Not big ones, but mainly moving assets from one exchange to another, from LSE to Xetra, mainly for cost optimisation and to get rid of ETFs denominated in USD.

This move only included my gold and commodities ETFs. The gold exposure remains the same (physically-backed, but only a different issuer: Xetra-Gold), but for my commodities, I have changed the underlying tracked index from Bloomberg Commodity Index (BCOM) to Rogers International Commodity Index (RICI).

As the special topic for this post, let me elaborate a but more on commodities indicies before reviewing my portfolio. It turned out to a slightly longer text than first anticipated, but well worth the read, so buckle up.

Continue Reading

Insight – Where does Real Estate investing fit in the All Seasons Portfolio?

In this rather lengthy post, the following topics will be discussed:

  • In what economical environments are real estate biased to perform well (economic growth and inflation)?
  • Five ways of investing in real estate, regardless how much money you have
  • How to adjust your balanced portfolio when including real estate - a template for adjusting portfolios regardless of new asset class
  • A list of resources with some of the best books on real estate investing

There are numerous opportunities and strategies for making money by investing. The ultimate goal is always to achieve a combination of positive cash flow and value appreciation of your owned asset. It is just a matter of preferred strategy for the investor which dictates how you can grow your wealth.

With the All Seasons Portfolio strategy, you can achieve profits but with less volatility than on the stock market. This is achieved by having a balanced portfolio that is diversified between asset classes. Typically, those asset classes are stocks, long-term government bonds, inflation-linked bonds, gold and commodities, with the following allocation between them.

There are of course many more asset classes available than the five listed above. One extremely important such asset class is real estate, which is a popular investment object among investors. It is so attractive, because it offers profits in two ways: value appreciation of the property, as well as monthly cash flow from rental income.

In this deep dive article, we will be looking more closely at real estate investing - how you can get exposure to it and with how much capital - and how it fits into an All Seasons Portfolio. Let us first begin with the latter of these two topics by answering the question of what economic biases real estate have.

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Portfolio Update – June 2020 – We’re In The Clear: Shift To Stocks! But Not Really…

  • Summary of June 2020 in the economy - Stock market is still uncertain
  • Monthly portfolio update: Fairly stable month: long-term bonds down, stocks, gold and commodities up
  • Book tip: Balanced Asset Allocation: How to Profit in Any Economic Climate by Alex Shahidi (link at the bottom of the post)
  • In case you missed it: Deep Dive post about how to hedge against inflation on my Patreon page was published earlier in June

I am so glad that you have found your way to my June portfolio update of the All Seasons Portfolio blog. It is a rainy afternoon here in Stockholm that I am writing this in early July. Still keeping social distancing and working from home quite a lot. Hoping to see a change soon, for the benefit of all fellow Europeans. We really need to get the economy going again, as I am sure you agree. Hope you have been able to keep your job though.

This month, I have come to the conclusion that the time for stocks is now, at least if you look at what is going on in the markets. Not sure if I am convinced this is the way we are heading, so I prefer to diversify my portfolio properly.

The stock market have bounced back from the steepest downturn in memory, and what looks like the shortest recession in history if you only look at the stock market development. The stock market is almost back at similar levels to where they were before all hell broke loose in February, regardless but S&P 500 saw almost flat development over June with +1.8%. Mostly, the climb in stocks were driven by tech and "stay at home" companies, as Nasdaq composite rose 6% over the month.

On top of that, central banks and governments over the world are launching new stimulus packages by the week, as we covered in last month's update. The two acronyms TINA and FOMO are the main forces driving the markets upwards. As a reminder, these stand for "There Is No Alternative" and "Fear Of Missing Out", meaning that investors see that there is no alternative to stocks to achieve return, and investors are afraid to be left at the station if they do not jump on the train as soon as possible. Both of these are driving great amount of money into the stock market, increasing demand.

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Portfolio Update – May 2020 – What happens now? Uncertainty after Covid-19

  • Summary of April 2020 in the economy
  • The most important lessons from the coronavirus crisis to remember and to prepare for future crises
  • My All Seasons Portfolio is up 3.93% month by month. Total value now over EUR 4,000
  • Bought Stocks and Commodities this month, and switched Long-Term Government Bonds ETF to US Treasuries instead of global bonds

Welcome back for another monthly update of the All Seasons Portfolio blog. This time around, we have had to digest another month in lock down and April 2020 could perhaps be remembered for us all wanting to forget it.

Anyway, I hope that both you and your families and loved ones have stayed in good health, and that you haven't been too restless at home.

On my end, things have been hectic at work with long days, which is not surprising when you work with loans to corporates. These are interesting times but I am holding up. Hope we will soon be seeing an end of the tunnel. However, I am very pleased and humbled to still have job, as I know not everyone have been that lucky. And at least in Sweden, we have been able to exercise outside, but if our government have employed the right strategy through the outbreak, I am not the right person to take a stance on. All I know is that I have been working from home the past 8 weeks and been avoiding to go to the bars (which cannot be said for all my countrymen). Just hoping that we all will soon be able to get these crazy times behind us.

These are crazy times in our daily lives and for the economy, it has not been uneventful on the financial markets either. It feels quite difficult to summarize everything that goes on when so much happens. It also feels like there is so much going on that you lose the sense of time, like did the WTI crude oil flash crash happen 3 weeks ago or 3 months ago? It seems s hard to keep track of time when stuck at home.

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Portfolio Deep Dive – Why invest in Commodities and about Invesco Bloomberg Commodity ETF

Let's take a slight break from the normal routine, shall we? Up until now, I have only posted on this blog once per month with my monthly updates. In those updates, I have included some additional flavor on different investment related subjects, such as tips to invest your pay raise in March or about why you as an European should consider investing in America back in April.

Today, I want to have a slightly different approach. Rather than combining this post with a monthly update, I will do a deep dive in certain aspects of my portfolio, in its own article. This way, it will be easier to truly focus on one subject, while hopefully maintaining your attention.

My portfolio currently consists of 10 different ETFs (October 2019). When I am done building my portfolio, it will be composed by 23 different ETFs according to my plan. However, let us today dive in a bit deeper into one of these ETFs that I intend shall have an approximate share of 7.5% of the portfolio value in the All Seasons Portfolio, namely Invesco Bloomberg Commodities UCITS ETF.

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