I will not comment Year End results in this post, this stays a monthly update just like any other update.
December kept positive momentum, there was a definite slowdown in market growth, but there is still positive numbers out there and record smashing activities all around the place.
Unlike last december, when I found out a major flaw with my accounting procedures and thus reporting, this December was dedicated at revamping my reporting system, to give better graphs and stats that are more “understandable”.
Explanation of terminology and graphs is HERE.
Change in reporting, changes many things… Let’s comment the obvious numbers:
TR grows to 9.94%, it did pass 10% in previous weeks but retraced on year end cool off from the major markets.
TER is free falling (veeeeeery slowly) to 1%, no complaints there of course but 2017 tax returns are coming in June 2018 so this figure is going to be on the rise like it happened this year.
NYYoC is growing steadily on the contrary, for the second month in a row it grew by 0.01% (accounting also for the reduction in TER which affects this number clearly).
Forex – Currency Effect is worth -6.60%, which means that if tomorrow currencies go the the average price to which I bought them TR will increase by this amount. So here we are losing quite a bit thanks to the strength of the Euro.
December scored a 1307 Euro turnover.
Dividends were 668 Euro (+10% vs.2016) and Options counted for 639 Euro (-56% vs 2016). Dividends showed some decent growth, if I can keep that up in 2018 I would be happy, Options on the other side show a massive loss, this is because the problems I have had with my excel reporting last year got me to have a terrible November and a far too beautiful December, nothing to worry anyhow. The result was affected by STX rolls in 2018 which costed me 450 Euros in December, coming out of this trade is proving to be hard but we are getting there little by little…
Some long calls were bought back exploiting movements of the underlying stocks, but generally I have a lot of money tied up in January on 4 puts and this stopped me from investing more in December.
Bought 50 EBR:ABI @ 94.97 Euro
AB Inbev gets to the “Option Trading Threshold” of 100 shares, becoming the biggest european holding in the portfolio. Technicals show a good resistance in area 94 Euro, and I do believe that the megamerger with SAB Miller will start showing some good signs in 2018. Will start selling Covered Calls when price goes up to 98/100.
New Positions – Sold Positions
Bought 100 VTR @ 60 USD
I had them on my radar for many months, 60 was a good point to start positioning and of course as soon as the stock recovers a little I will place my long Covered Call as per trading strategy. It’s a “core” stock for me so I might have to consider selling ITM CCs on MPW to get the stock out of the portfolio. Will assess situation over January, I need to refresh my due diligence on MPW to be honest.
Nothing to report
December was a positive month for the Long Haul Portfolio, defensive stocks suffered in the past months and gave me the opportunity to move onto some of them, but generally the positive trend is there and of course it’s good to ride it. Economy fundamentals appear pretty solid all over the world, major concerns are elections (Italy), QE might stop (Europe), Interest Rates in USA around March/April might get 10Y T-bills over 3% and that could create a major shift in investment stance from some investors. But as usual the crisis that we will all get tomorrow will be on something that today is not evident at all…