January 2021


A General Overview

To be honest, nothing major to write this month. Pandemic-wise things are improving, despite a delay in vaccines that are going to be delivered to Europe, Italy got yet another government crisis going on and on a personal note I have developed a nasty back ache that is killing me (lack of activity, weight gain etc etc)…

I do not believe that 2021 will be the year of “rebirth”, it will be a difficult year, but as I mentioned several times, difficulties are good in a way because they pave the road to greater targets.

LH FUND

Explanation of terminology and graphs is HERE.

Let’s see the numbers:

MonthTRYTERNYYoCForex
12.140.00%0.00%0.00%0.00%
12.15-3.33%1.22%-0.13%-1.00%
12.167.06%1.14%1.16%-4.35%
12.179.94%1.04%2.64%-5.94%
12.183.28%1.24%2.70%-3.53%
12.1923.50%1.35%2.72%-1.40%
12.2015.76%1.28%2.70%-7.60%
01.2115.52%1.27%2.71%-7.03%

TR is decreasing (vs. previous month) – More or less we are there, but technically there was a decrease in TR.

YTER is decreasing (vs. previous month) – Slight decrease of 1BPS, nothing major, but we’ll that everything we can!

Net Yearly YoC is increasing (vs. previous month) – 1BPS here as well, nothing great again but let’s not complain!

Forex is getting better (vs. previous month) – Still riding very strong the Euro has a big effect on TR for the PF.

Dividends and Options

December income was 982 Euro

Dividends accounted for 790 Euro (-17% vs 2020) and Options ended up with a 192 Euro score (+N.A. vs 2020).

Dividends

January off to a terrible result… -17 percent YoY is not good at all, of course as usual there are explanations for it. Mostly to do with the special dividend that BKE (one of my holdings) always pays in January, and that was anticipated to December in 2020. The difference is mostly there, but that means starting off with some ground to cover already. Not great…

Options

Target this year is to score at least 200 euro every month from option activities, came in just right (actually a little lower but only marginally), so this was a good month.

DCA/Increased Positions

Nothing to report

New Positions – Sold Position

Sold 50 BIT:IMA @ 68 EUR

Well this wasn’t a sale actually, it was a buyout from the controlling company on the whole firm. As they have majority of shares we didn’t get to vote as stockholders, resulting in a forced sale and a delisting. Shame for two reasons: I liked this company and I had to sell the stock at loss…

The Financial Conclusions

Third month in a row that I cannot find anything to buy, it’s not a tragedy of course, but it says a lot on the state of the market that “I” see. Well, to be fair, more and more people are jumping on the bandwagon of “too high to be true”, but still, we go from high to new highs almost on weekly bases.

The economy as a whole it’s in shambles, but high free liquidity, low interest rates and commodities being still cheap are all forces that drive down inflation and therefore rates will not grow, making investments in stocks much more attractive than in the “safe alternative” government bonds (which in my opinion is not so safe anymore).

After all why pick up a bond that gives you 1% when you can buy today Proctor and Gamble that yields 2%?

2021 maybe will not see the tide changing (despite the fact that T-Bills at the time of writing have already gone up a lot in terms of yield, so something IS moving), but I expect some major turbulence when government aid is going to be scaled back and the economy start picking up.

As to the portfolio activity, I am concentrating on options, trying to raise cash. Will buy something if an occasion arises, but it’s hard to find them.

2 thoughts on “January 2021

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