Oranges. I think this has been the food related highlight of the month, buying oranges and the likes (lemons, tangerines and so on) from Sicily, directly from the producers sites. Disintermediation they call it, it’s part of the new leverages of modern economy.
The idea of putting producers in touch directly with the consumers is quite great, should guarantee a better economic treatment for the people who make things and better prices for the ones that buy. All in all the only looser into this equation is the middleman, which here in Italy is getting the biggest share of the profits when selling produce and food.
This is to introduce the major changes in the financial world that come from the US, where brokers apparently decided to stop charging commissions on trades, a classic example of intermediaries getting less profits.
November saw quite a rally in the stock market, it’s really hard to find trades to place, it seems that everything is generously valued (read: overvalued) and it’s hard to “pull the trigger”. It’s ok to take a pass I guess, but knowing my weaknesses patience is certainly one of those! A classic case for personal growth I guess 🙂
I still think that the markets are quite stretched, but it’s also true that apart from the usual rumors on the USA-CHINA trade deal there aren’t other catalysts that point towards a recession or an impending crisis. Having said that, it’s also true that a crisis comes unannounced…
Explanation of terminology and graphs is HERE.
Let’s see the numbers:
TR is increasing (vs. previous month) – November rallies, Long Haul Portfolio follows suit.
YTER is decreasing (vs. previous month) – Not a lot of trade activity this month helps in reducing this figure. It’s good news after all, no complaints.
Net Yearly YoC is increasing (vs. previous month) – Not bad, a small recovery in November for this metric which is one of the most important to me. It’s clear that hitting the 3% target this year it’s going to be impossible, but it would be good closing the year growing back towards it…
Forex is getting better (vs. previous month) – What a rally! Well, pound keeps recovering and so is the dollar, almost at parity with my average exchange rates, good stuff…
Dividends and Options
November was a good month for the markets, and I have to say that also the LH Portfolio performed decently, given the fact that I had some bad trades to close at a loss.
October saw a 1695Euro result.
Dividends accounted for 1390 Euro (-12.8% vs.2018) and Options ended up with a 305 Euro score (+3.69% vs 2018).
Let’s see what got us to these results…
Dividends were below last year, but that’s mostly because last year I have had an extra dividend from Standard Life which bumped up the score by 300 euro… So technically this year was better, despite the lower score.
Options did quite well, I have had to protect some trades and roll some others, managing to close ahead of last year it’s already a great result!
List of Options closed in October
Nothing to report
New Positions – Sold Position
Bought 50 LON:CCL @ 31.80 GBP
Carnival is the world leader in leisure cruises, they own and operate the fleet and have clients from all over the world. Dividend appears to be well covered, they are suffering from a slowdown in sales. I am not too worried about it, it’s a cyclical stock and since I have had to let go of LON:GNK (because it was delisted after being acquired by another company) I opened up again some exposure to the consumer cyclical sector in the UK. Different industry of course.
Sold 290 LON:GNK @ 8.5 GBP
Greene King was a very interesting company, pubs and hospitality in the UK, good dividend history and performances. Apparently I wasn’t the only one thinking along this way, it was subject to a M&A bid and was bought off at the end of November. I made a decent profit out of it, it’s a shame to see it gone, but no complaint there!
Sold 10 FRT-C @ 25.50 USD
Tested this Preferred to see if it was an interest payment or not. It wasn’t an interest payment (so I get double taxes on it), so I let the 10 stock go.
Nothing much on the trade side of things, November was an heavy month for personal reasons, with parents and in-laws having to go to the doctor a lot, with my wife restarting work (and me becoming an almost full time “mum” with the little one at home).
Markets were buoyant, December is going to cap this year off, in a positive way I believe, in the end 2019 was a bull year, if all things are confirmed.
For a DGI investor at my age, this is not exactly great news, because I don’t get to deploy all the capital buying stocks on the cheaper end of the spectrum, but as I said many times a crisis is something inevitable I am afraid, so it’s just a matter of time… Let’s hope it’s not going to be too heavy!
I am reading that banks are keeping liquidity on the high side because they are unsure of what might “come after” this bull ride that we have had so far. They are trying to control the world’s economy to enter a recession is a slow and controlled way, so that it doesn’t create havoc… Let’s see if this is what they are going to do or not, it’s sure that the intervention of central banks has helped markets stay this high for this long.