I can’t believe the year has finally ended! The year that was 2020!
It was one hell of a year! We saw one of the fastest declines and equally swift recovery in the market that left many people astounded!
But all’s well that ends well, right?
Is it All’s well until it ends bad?
We have no way of knowing!
Just as nobody could see the Covid-19 crisis taking a horrific shape! Nor could anybody saw the fastest recovery to all-time highs!
The best we can do is follow the markets and the process!
And the markets are in no mood to give up!
Nifty marched through 14000 to close at an all-time high! Nifty is up around 36% since June 2020 and close to 8% in the month of December. Nifty 500 is up 36.56% in the last 6 months and 7.46% in the month of December.
Since March 2020 lows, Nifty has closed up seven out of nine months and is up around 87%. FIIs have turned net positive in India by $14 B for the year 2020 as per the NSDL website. The last two months of 2020 has seen an inflow of close to $18 B.
It looks like the liquidity tap is going to be open over the next few years which will keep the markets buoyant. At the same time, we need to keep our feet grounded and not get carried away with these kinds of moves.
Risk management becomes an utmost priority after such massive rallies.
Anyway, where do we stand as far as my Model Portfolio is concerned?
Here’s the real-time snapshot of the actual 10 stock model portfolio established based on the DYR Hybrid Strategy. The Hybrid Strategy is the combination of Dual Momentum Monthly Rotational Strategy and Mean Reversion Long/Short strategies applied together.
The total portfolio equity at the end of 6 months stands at 19,21,693.28, up around 39.25% on starting equity of 13.8 lakhs.
As I said above that managing risk will be very important going forward in 2021. Keeping the risk in mind I have raised my cash levels up to around 19% of the portfolio.
I like to play conservative and I believe the cash is the best hedge if any unpleasant event were to happen. It reduces the drawdown if any and you can anyways get back in whenever you feel comfortable.
For the sake of repetition, I would like to quote Mr. Morgan Housel again…
…the most important question to answer as an investor is not, “How can I earn the highest returns?” It’s, “What are the best returns I can sustain for the longest period of time?”
Have a great weekend and a wonderful 2021!
New year, new announcement!
I am hosting a workshop for a small group of 30 people on 16/01/2021. Here’s what I’m planning to teach…
Momentum Investing Masterclass.
Beat the markets with less risk, time & stress!
I will lay out the exact process I use to select quality stocks that do not take more than 15 minutes of your time every month! I will explain all the rules, rationale & historical as well as live results with you!
The above real-time performance is based on one of the two momentum strategies that I will teach in the workshop.
If this is something of interest to you, Just comment below or email me at email@example.com and I will send you all the details about the workshop!
Bye for now!