#Portfolios carry innate positioning. Corrections are when positioning counts.
#Positioning depend on your style. #Value plays out distinctly. #Momentum has its own stamp. #Thematic plays to its own dynamics. Often, we follow a blend.
Your Blend counts. Watch it close. 1/7
#Positioning depend on your style. #Value plays out distinctly. #Momentum has its own stamp. #Thematic plays to its own dynamics. Often, we follow a blend.
Your Blend counts. Watch it close. 1/7
Often, #Portfolios are constructed without a blend. They will be distinctly #Momentum. Or uniquely #Value. Or totally #Thematic .
Such portfolios may show beta that can shock and awe both ways.
#Positioning will held manage #beta better; It always fits to a market context. 2/7
Such portfolios may show beta that can shock and awe both ways.
#Positioning will held manage #beta better; It always fits to a market context. 2/7
Market context is dynamic. Interest rates, exchange rates, oil prices, political churn & technological change are all key drivers.
#Portfolios need to capture the dramatic shift in drivers. #Positioning must be aligned to emerging trends in drivers. Blend must capture them. 3/7
#Portfolios need to capture the dramatic shift in drivers. #Positioning must be aligned to emerging trends in drivers. Blend must capture them. 3/7
A portfolio’s #Positioning has to reflect the investor’s personality. Choices must align. Blend must have character.
As markets rise, #Portfolios lose track & get disconnected. Investor himself lets it happen. Often, this leads to most problems. Investor struggles to cope. 4/7
As markets rise, #Portfolios lose track & get disconnected. Investor himself lets it happen. Often, this leads to most problems. Investor struggles to cope. 4/7
The walk back to a better shape has to start with #Positioning. #Portfolios must take stock. Past trends must be called out & stocks moved out ruthlessly. Monies freed must be carefully deployed to construct a new forward looking #Positioning. Rush won’t work. Take it slow. 5/7
Every portfolio suffers #Positioning flaws. In fact, professionally managed ones suffer greater flaws. Trend change catches them off guard. The worst kept secret is a PMS can’t quickly redraw its positioning without hurting returns. The blend change costs will hit home. 6/7
Retail investors can ill afford lethargy if #Positioning is wrong. But, we see problems at stock level. Shift focus swiftly to #portfolio level. Address it clinically & work diligently to create a futuristic #blend. Mix #Value & #Thematic futuristically. Avoid #Momentum NOW. 7/7
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