Fireworks in the high-growth sector is seeing investors turn towards value stocks after a long pause. The drawdown and divergence was something to behold during the month of September as the selloff provided some good opportunities in the growth space — although valuation in general still seems pretty high.
The US Fed continued its easing policy with another rate cut and September also saw liquidity issues in the overnight repo rate — resulting in the NY Fed stepping in. Most central banks around the world have started easing as the US$ continues getting stronger, so the currency wars are far from over.
Outlook for October 2019
Work on portfolio management is never complete when it comes to investing. There is always the future to worry about and look for best available opportunities.
I intend to remain focused on high-quality companies & high-conviction investment ideas. In my hunt for deep value, I have ended up with some weak companies that are cluttering my portfolio. I am slowly going through the cleanup activity and expect to have this completed before the end of the year.
As I revamp my portfolio, I am also paying closer attention to position sizing. I intend to structure my portfolio so that I have enough weightage on appropriate securities (there was a bit of an imbalance in the past) going forward. You can track my recent buys and sales here.
As of Sep 30, 2019 our portfolio is diversified as shown below.
I have also started putting together a series of posts for Investment Ideas, where I explore different ways of looking at companies and finding inspiration for further research.
What are your thoughts on the points mentioned above? Do you have any specific thoughts on the markets and looking at anything interesting? Are there any stocks that you believe is a strong conviction buy here? Share with a comment below.
Full Disclosure: Our full list of holdings is available here.
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