What's Wrong with my Portfolio?



Even though this year I made over 150% and in the last 5 years, made over 60% annually vs 15% for the S&P 500 $SPX500 , it is important to look at my portfolio and see what's working and especially what's not working so that it can be improved.


You will notice that I have much cash and cash equivalents through bond ETFs and even Gold $GLD . This is because after my 3300% profits on GameStop $GME earlier this year, I had 40% of my portfolio in cash. I was able to use some of them but with stocks still very expensive, good deals are rare. I don't want to rush into bad deals. One improvement I can do is use this cash.


How will I use the cash? I will be looking at sectors that are undervalued right now. For example, defense and aerospace. I'll be looking at these as soon as my CISI exam is over next week.


I can also look at special situation stocks to keep my correlation with the market low. Arbitrage opportunities can be a better alternative than cash.


What you need to beat the market over the long-term is a few winners only. There will be good investments, some bad investments, many average investments. But if you can have some great investments, as I had with GameStop or FreePort-McMoran $FCX last year, this can boost your returns by much. To find these winners, you have to keep looking.


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