2020 has rewarded bravery but what to do now is the perennial question in investing. We did the right thing being aggressive in the teeth of COVID-19 back in March and April, taking the view that the stimulus packages, in particular the US Federal Reserve money printing machine, would underpin asset prices.
Our performance in 2020 kicked up to 80%
In hindsight from our own ASX share portfolio, I wish we had bought more. Not selling was a good thing, I admit. Better to be on the right side of the investment ledger than in the abyss. As usual we’ve had some good performances and some not so good performances, but our overall stock return average kicked up during the year from 60% to 80%.
Taking profits on big winners
In this week’s report we are taking profits on some big winners. Join today to find out which stocks these are so that you know exactly when to sell and make a profit! As we say in our note on one of the stocks, as we head towards 2021 we cannot look past the fact it has more than tripled since we covered it just over 5 months ago.
When you have so much leverage in the system, through money printing and derivatives, the sell off in 2020 showed that it’s always good to take risk off the table and cash in profits.
Keep an open mind about new stocks to buy
On the other side of the equation, you need to keep an open mind about new stocks to buy. One of the stocks we are taking profits on one heard of before we covered it. We’d all heard of Retail Foods Group (RFG) for all the wrong reasons. But sometimes the “irrational exuberance” of the market can lead to opportunities. I urge you to join today and read our research on RFG in this report. There is quite a deal of risk, but do we still think .
What about lithium?
Lithium has been through its ups and downs over the past few years and our resources analyst Peter Chilton has been watching the sector very closely. We think the 16% fall in Pilbara Minerals (PLS) yesterday represents a buying opportunity in a sector leader after some exuberant buying. It’s a case of expectations being deflated amid a story of long-term battery led demand.
2020 taught us to respect risk. In an environment of low interest rates, this is easy to forget.
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