- Prepare for annual rebalancing: J.P. Morgan estimates USD 300bn equity sell-off for balanced funds
- Portfolio changes: Introduction of VIX and Bitcoin
- Temporarily decreased inflation-linked bonds in deflation fright
- Monthly Update for November
- Book tip: Beyond Blockchain: The Death of the Dollar and the Rise of Digital Currency by Erik Townsend (link at the bottom of the article)
- In case you missed it: My latest Insight article about How VIX ETFs can improve portfolio performance and stability in volatile environments
Hi, and great to have you back for a new portfolio update filled to the brink with content.
Hope you are in good health and are preparing for a safe holiday seasons coming up. It is going to be a rather different Christmas this year as many countries are imposing extended restrictions by end of December. Celebrations with family will perhaps not be possible for many unfortunately, and that is a tough thing. One can only hope that our sacrifice to stay at home with only immediate family will help us avoid a third wave and as many unnecessary deaths as possible before vaccines can be rolled out on a larger scale next year.
I had hopes on joining my girlfriend on her trip to her family in Italy, but with the new restrictions, it seems more likely I will be stuck in Sweden for Christmas and New Years. It is unfortunate, but what can you do? This year has been challenging in many ways.
Winter is coming here in Sweden, and the darkness with it. I read that someone likened how it is to live here in the winter months to living in a refrigerator with a broken lamp. It is actually a quite accurate description, as the sun sets already around 3pm.
We have a lot of ground to cover in this month's update, so let's just dive into it. I have made some structural changes to my portfolio and will therefore spend some time to lay down my reasoning for the changes. This includes an addition of VIX and Bitcoin, but also a temporary decrease in inflation-linked bonds. Before going into my reasoning on these changes, we will have a look at the coming rebalancing period in late December.