The stock market has recovered almost all of the losses incurred with the pandemic. From peak to trough (Feb 2020 to March 2020) we lost about 23% of our value. Today, we are down about 7% from peak. Our percentages do not completely align with the market because some portfolios hold up to 20% cash and some bond investments (BND ETF from Vanguard) and Gold (IAU ETF ticker). This performance generally aligns with riding the market down and then back up again.
Whether by luck or design, our portfolios did not hold most of the industries that bore the brunt of the Covid impact, like airlines, hotels, and commodities. We did have some stocks that we recently sold in some of these hard hit areas.
I reviewed the rest of the portfolio and we are continually “pruning down” the list of stocks that we hold. There are about 30 stocks held across the portfolio right now, down from about 40 or so in the relatively recent past. This does not include ETF’s.
The stocks that have driven the most value in the portfolio that are not bought across all the portfolio (because every beneficiary selects individually) are:
- Electronic Arts (EA) – videogames
- Mastercard (MA) – electronic payments & credit cards
- CME Group (CME) – financial services
- Alibaba (BABA) – Chinese e-commerce giant
- Nvida (NVDA) – semiconductors
- OKTA (OKTA) – SAAS provider of security services
- Paypal (PYPL) – electronic payments
- Procter & Gamble (PG) – iconic brand company
- Taiwan Semi-conductor (TSM) – semiconductors
- Union Pacific (UNP) – Railways
- Gold ETF (IAU) – tracks price of gold
If the portfolios that are selecting new stocks don’t currently own one of the stocks listed above, they may want to consider buying them.
New stocks for May 2020:
- Carrier (CARR) – manufacture and sale of Heating and cooling systems (HVAC). Recently spun out from a conglomerate
- Facebook (FB) – owner of Facebook, Instagram, and WhatsApp seems to have recovered from past controversies
- Cloudflare (NET) – security and edge networking has been growing with the crisis
Stocks To Pick:
Portfolio Four – select three stocks
Portfolio Five – select two stocks
Portfolio Six – select one stock