August 2022


A General Overview

August is an holiday month for most Italians, but not for us. Maybe because we are a mixed international family? No, simply because we went on holidays in July and June, so no more partying for us!

Life was difficult with 40 degrees Celsius, no air conditioning (it died when we came back from the seaside in July) and two kids. It’s really a LOT of work to keep them calm and entertained, put on that the fact that my wife was not feeling well, and the critical situation is served. I really do not know how we are managing, this yeas has been probably one of the hardest of my life… and I fear that the worst has yet to come…

Anyhow, nothing much to tell, life went on pretty uneventful in August, I’ve finished the preparations for my Sustainability course at the University (despite the difficulties to concentrate with the noise and mess that we have at home), so no major complaints there.

LH FUND

Explanation of terminology and graphs is HERE.

Let’s see the numbers:

MonthTRYTERNYYoCForex
31 Dec 20140.00%0.00%0.00%0.00%
31 Dec 2015-3.33%1.22%-0.13%-1.00%
31 Dec 20167.06%1.14%1.16%-4.35%
31 Dec 20179.94%1.04%2.64%-5.94%
31 Dec 20183.28%1.24%2.70%-3.53%
31 Dec 201923.50%1.35%2.72%-1.40%
31 Dec 202015.76%1.28%2.70%-7.60%
31 Dec 202137.13%1.35%2.69%-2.05%
Jan 202235.83%1.34%2.61%-2.75%
Feb 202235.70%1.33%2.63%0.45%
Mar 202240.68%1.32%2.64%0.19%
Apr 202241.87%1.31%2.65%4.09%
May 202241.54%1.32%2.72%2.06%
Jun 202234.62%1.47%2.63%3.47%
Jul 202239.94%1.46%2.63%6.32%
Aug 202241.24%1.45%2.66%8.19%
LH Portfolio Milestones + Monthly current year

TR is increasing (vs. previous month) – 500bps, lots of movements on this metric recently!

YTER is decreasing (vs. previous month) – 1bps, every little counts!

Net Yearly YoC is stable (vs. previous month) – 3bps, it’a GREAT result, very happy with this.

Forex is better (vs. previous month) – The rally in the dollar keeps going, aided by the GBP

Dividends and Options

Income this month was 2442 Euro

Dividends accounted for 1309 Euro (+19.63% vs 2021) and Options ended up with a 1133 Euro score (+361% vs 2021).

Dividends

Very good work again, dividends are what matters to this portfolio, to see them grow is great!

Options

Closed all the rolls from past month, they expired OTM so I got a lot of boost from that, plus several trades placed that went all good.

DCA/Increased Positions

Bought 50 BEPH @ 16.90 USD

Increased the position further, yield is very good at this level (5% net) and I left 50 pieces to be bought on further leg down, so I had the dry powder there. Almost near to have my preferred ETD portion of the PF full, quite happy about it.

Bought 100 AMS:PHIA @ 19 EUR

Had to take these stock because of a put option that expired ITM, will not add more to this position is already too much under the water as it is

New Positions – Sold Position

Nothing to report

Financial Conclusions

Markets rebounded in August, quite heavily. On nothing as usual. I try not to follow too much all the buzz and talk on the reasons why and when, I try to stick to the fundamentals that I can see. The anticipated recession was TOO much anticipated, so maybe the market took a breather there. Oil reserves in the US are almost depleted, that was used to put down prices of gasoline in America (elections are near) and lower inflation, but the reality is that these reserves will need to be replenished sooner or later, so I expect oil to climb as well as inflation in the US.

FED and ECB are rising rates, this technically should lower market sentiment and increase sales, but everyone is busy trying to predict when the recession is coming, because everyone is trying to time the market.

There are some occasions already, but most of them are “recovery plays”, the market in the US hasn’t fallen as much as the EU so big names are yet to come at interesting level.

In Europe things are much worse, and the energy crisis that we are likely to experience is going to send us straight into recession, hoping that it’s not a long a hard one. This is the reason why, despite very low prices on some stocks, I haven’t pulled the trigger yet, I fear that there is more downside to this market.

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