August 2020 Portfolio Review
The portfolio generated +8.71% in August
August was a good month for many, including the good ol' S&P500 but my portfolio outperformed most. Let's look at the portfolio stats:
- Return for August: +8.71%
- Profit for copiers in 2020: between $1,000,000 - $1,500,000
- Beat the S&P500? Yes
- Year-to-date return: +26.77%
- Trailing 12-month return: +43.09%
- Realised profit/loss: +0.25% (I've sold very little through earnings)
- Lifetime etoro performance: +450% (if you'd copied me with $100k in 2015 you'd have $550k today)
My fund has grown, and I'm now managing over $7,000,000 in copiers funds (the copier profit above being part of that). Those of you that follow closely will have seen me closing hedging positions through August as earnings showed a much rosier picture than expected. Hedges shaved about 1% off my August gains, but they were there in case earnings tanked - an insurance policy.
In September I expect a quieter month as we leave earnings season behind us. Summer is ending, and people be getting back to work. I also think that some of the government programmes aimed at getting people back to work will jump-start the recession recoveries.
Over the next six months, I expect to see the following:
- A "Santa rally" in the retail sector. I expect Chinese retailers to do exceptionally well
- "Stay at home" stocks will continue to perform well, although some will be reaching saturation point, e.g. there are only so many people that can subscribe to Zoom
- Some travel will resume especially around Thanks Giving and Christmas. This activity will boost travel and hospitality stocks but potentially only in Q1 2021. I will continue to hold airline and hotel stocks through to Q2 2021 at least
- The media will peddle fear in the form of "a second wave is coming" as the northern hemisphere enters Winter (which may or may not be accurate)
- The media might start peddling fear in with "hyperinflation is coming" (which may or may not be accurate)
Best of luck for September! 🖖
The full report on my August performance is summarised by etoro here.