Timeless tactics: preparing your portfolio for market downturns
In this episode of Stocks Neat, co-portfolio manager Gareth Brown and I discuss several investing maxims, and how these might apply to portfolio positioning in prior and current markets.
Topics covered include cleaning portfolios to include only high-conviction ideas, selling when you can, maintaining cash in the portfolio, how to deploy cash in a downturn, and identifying diversity breakdowns that result from cross-sector correlations.
Additionally, Gareth and I analyse some recent portfolio changes and the driving factors behind these shifts, before responding to a couple of questions sent in from listeners.
Here are some of our discussion points, with the timestamp of where they appear in the podcast for those who want to jump straight to it:
- 4:20 - Gareth and I lament the fact that we had considered the possibility of a very poor period of portfolio performance during March 2021, and didn't subsequently position properly for it. Hence one of the reasons for this podcast topic: how we are going to do better this time.
- 7:55 - the first maxim we discuss (these have come from a retired London broker who sent around the top 10 things he's learned from traders following his years in broking) is number six: A few small positions can kill performance when things get choppy
- 12:45 - We talk about how a little capital goes a long way when markets are volatile, and how to deploy this capital during a downturn to increase the chance of getting a bargain of a lifetime
- 18:40 - In the second half of the podcast, we discuss how to identify signs of a really dysfunctional market - where downward moves are completely unrelated to what's going on in the business or the economy
- 25:05 - Finally we move on to how the portfolios are positioned at Forager and how this has changed in the past few months and why
If you share our passion for unloved bargains and have a long-term focus, Forager could be the right investment for you. Click 'FOLLOW' below for more of our insights.
For all of Forager's latest content, videos, podcasts and fund reports, register here.
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Steve began Forager Funds in 2009, and now manages approximately $350m across two funds. Offering a listed Australian Shares Fund (FOR) and an unlisted International Shares Fund, Steve focuses on long-term investing in undervalued companies.
Steve began Forager Funds in 2009, and now manages approximately $350m across two funds. Offering a listed Australian Shares Fund (FOR) and an unlisted International Shares Fund, Steve focuses on long-term investing in undervalued companies.
Expertise
Steve began Forager Funds in 2009, and now manages approximately $350m across two funds. Offering a listed Australian Shares Fund (FOR) and an unlisted International Shares Fund, Steve focuses on long-term investing in undervalued companies.
Expertise
Comments
Comments
Sign In or Join Free to comment
most popular
Equities
Buy Hold Sell: 5 growth stocks for the next 5 years
Livewire Markets