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Where to reduce exposure - anticipating a correction

Stocks and Shares ISA , Choosing funds for ISA's, risk factors for funds etc
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richfool
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Re: Where to reduce exposure - anticipating a correction

#428515

Postby richfool » July 18th, 2021, 3:30 pm

Itsallaguess wrote:
richfool wrote:
I have been deliberating on whether to sell or reduce: ATST and/or MWY, and possibly CYN.

Other possible weaker links, to me, are HINT, ASEI and perhaps JETI.


Have you considered that you've perhaps caught a mild dose of 'pickering'?

It's not something that's seen too much in the IT-related sphere, but some people may be more susceptible than others, all the same...

Cheers,

Itsallaguess

Indeed. :D I like to challenge my paradigms and even play "devil's advocate" with my thinking/choices.

I am taking particular notice of how the various trusts fared during the Covid falls.

As said, I'm not so concerned about the level of income received, (as I have sufficient income from other sources - pensions), more about preservation of capital, and I'm also conscious that one should take a long term view and not be thrown off by short term fluctuations/and events.

tjh290633
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Re: Where to reduce exposure - anticipating a correction

#428550

Postby tjh290633 » July 18th, 2021, 6:02 pm

Itsallaguess wrote:For those of us who's investing history covers the years since 2000, we've been 'blessed' with three pretty brutal, although relatively short-lived market corrections -

My first was 1974. I stayed fully invested throughout, back then in unit trusts, and had an odd failure in the 2000 event, Marconi and I dumped British Airways. The 2008 event led to a lot of changes as non-payers were dumped, but I have done nothing in the current situation, except to add to my dividend-payers with reinvested dividends. Currently my accumulation unit stands at near an all-time high, with the income unit not far off. Both have dropped back this last week, of course.

Lemons have to be dropped, of course, but most decent dividend payers recover very quickly from major setbacks.

TJH

richfool
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Re: Where to reduce exposure - anticipating a correction

#429547

Postby richfool » July 22nd, 2021, 10:15 am

So I am currently thinking, what if there is a market crash, maybe accompanied by increased inflation, (and noting that I am generally a buy and long term hold investor, with an increased emphasis on income, but like to include some growth and plenty of diversity). The question is, - are there any of my IT holdings that I could or should rationalise, reduce, or sell to make my portfolio a bit more defensive, or to reduce its volatility. My current holdings are listed below, (apologies to Dod if I don't remember all their full names). They are listed in size of holding order within each category. My largest 4 holdings are in bold type.:

Global G&I:
JGGI - JP Morgan Global Grth & Inc
SAIN - Scottish American Global G&I
*HINT - Henderson Int Inc

Global Growth:
MNKS - Monks
SMT - Scottish Mortgage
*ATST - Alliance
*MWY - Mid Wynd

Global Multi-Asset:
MATE - JP Morgan Multi-Asset trust
PNL - Personal Assets

UK:
ASEI - Aberdeen Standard Equity Inc
DIG - Dundedin (correction - DUNEDIN)
LWDB - Law Debenture

USA/North America:
MCT - Middlefield Canadian Inc
USA - Baillie Gifford US Equity
BRNA - Blackrock North America

Europe:
JETI - JP Morgan European Inc
EAT - European Assets
BRGE - Blackrock greater Europe

Asia Pacific:
AAIF - Aberdeen Asian Inc
JAGI - JP Morgan Asian Growth & Inc
PHI - Pacific Horizons

Infrastructure:
EGL - Ecofin Global Utilities & Infrastructure
INPP - International Public Partners

Renewables:
SEIT - SDCL Energy Efficiency Trust
GRID - Gresham House Energy (Storage)

REIT's/Property Coys:
PHP - Primary Health Properties
RGL - Regional REIT
SLI - Standard Life Prop Inc
SUPR - Supermarket Inc
WHR - Warehouse REIT

Basic resources/miners/commodities:
POLY - Polymetal (Gold Miner)
BERI - Blackrock Energy resources Inc
BRWM - Blackrock World Mining
CYN - CQS Natural Resources Inc


Those marked with an asterix * are those that I consider could be ripe for rationalisation, - i.e. Alliance or Mid Wynd and HINT.

So I did my bit of "pickering"/fine-tuning on Monday:

I sold ATST (partly to reduce exposure to technology and particularly the FAANG's)
Trimmed 20% of my holding of SMT to reduce exposure to more volatile technology and growth. (I hold a larger slice of Monks)
Sold 40% of my holding of ASEI (partly to reduce exposure to major oil and Shell and BP)
Trimmed 20% of my holding of LWDB (partly to reduce exposure to major oil Shell & BP)

With the proceeds I topped up::
PNL, SAIN, DIG, RGL and a small amount to AAIF and MWY.

I felt DIG held better quality stocks than ASEI and was less volatile. PNL is defensive and holds some inflation protection in the form of US TIPS. SAIN a good balance between growth & income. RGL offsets some of the income lost through the reduction in ASEI and increases an alternative asset class. MWY was topped up as it was a smaller holding in what I see as a less volatile growth trust (and a different house to Baillie Gifford).

JGGI remains my largest holding.

I pondered, should I add BIPS or even NCYF., but decided no, as I don't need the income, or the downside risk if interest rates rise.

richfool
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Re: Where to reduce exposure - anticipating a correction

#431436

Postby richfool » July 30th, 2021, 12:05 pm

Following on in this general theme, and bearing in mind the merit in holding good quality stocks, last Monday, I took advantage of the market falls, to add Finsbury UK growth & income trust to my holding. Whilst it's capital performance of late has been very average (over periods of up to 3 years), and its dividend yield is low at c 1.84%., Nick Train does aim at quality holdings and doesn't churn his portfolio. (Indeed in some instances, he could be accused of holding onto stocks too long!).

https://www.hl.co.uk/shares/shares-sear ... -25p-share

https://citywire.co.uk/wealth_manager/i ... ePeriod=12

richfool
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Re: Where to reduce exposure - anticipating a correction

#468715

Postby richfool » December 27th, 2021, 7:36 pm

Further to the above, anticipating the inevitable correction, I pruned SMT and Monks a while back, added RICA and topped up MCT.

I am currently thinking of disposing of USA (I still hold BRNA, now BRSA). I have also been looking at adding Brunner and possibly Caledonia, though perhaps not at current prices.


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