What's in your Watchlist?

Right now my Watchlist is made up of the securities that I was keeping an eye on before I joined GI.

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There’s a few things I’ve spotted, just by looking at the ‘shields’ on this screen -

The tech stocks are ranking poorly based on value so if I’d invested, I’d be looking into whether I should sell them. That needs to be weighed against Slack’s high momentum ranking and Twitter’s high value ranking though.

It’d be good to have few more gold shields (these are the securities that’re ranked in the top 20% of our universe), in the list…I generally wouldn’t make an investment unless the security has at least one gold shield. But obviously even then, I’d do some more research before I make the call.

Let me know what you think of my choices :smile:

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It’s not very diverse :sweat_smile:

Not many sectors and it’s very UK and US orientated

Not interested in ethical investing?

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I should have said, this is just a list of securities that I’m following, not a model portfolio :see_no_evil:

I’d definitely want to diversify more and add some ethical investments, among other things, for my portfolio.

A mix of securities I’ve invested in and companies I use when I do testing!

Apple I don’t hold but I use it when I’m doing tests around the gold shields (the gold edges around Quality and Momentum), plus they have a long history for any historic calculations we do.

Beyond Meat I sadly hold. I like to have it to remind me about rash un-researched decisions :joy:

City of London Investment Trust, originally did hold but no longer. Recommended to be years ago as one of the solid dividend investment trusts. Long and fairly reliable track record. One of the investment trusts I like to mention to people. Plus useful for any fund testing I’m doing!

Electronic Arts is one of my holdings. One of the oldest holdings I have in terms of always having a place in my DIY portfolios.

Games Workshop, this is an investment I’m been watching for a long time but never purchased. Likely a future investment for me (maybe when I get round to selling out of Beyond Meat.)

Glencore, one of my first holdings in my old (now closed) Interactive Investor account. Seven years ago this stock was all the rage with it’s volatility and excitement. I have it in my watchlist as a reminder of the old days of day trading, plus whenever I speak to ex-colleagues it’s the investment that always comes up!

Telsa, I don’t hold and I’m not sure I ever will. I love what the company is doing, I love the drive to innovate everything by Musk. However, I can’t pin the price movements on anything rational. It’s the stock that does whatever it wants!

I have more investments but this is what I have in my watchlist at the moment!

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I have only invested in ETFs so far, feel like I need to bulk up that first before I start investing in individual shares.

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I’d always start with a solid base of reliable funds. My ISA portfolio is 70/30 in terms of funds to direct equity. :safety_vest:

Overall it’s an equity heavy portfolio but I get the majority of exposure through my fund selection, making sure they don’t have too much cross over.

The stock picks are more firms I am passionate about, stuff I find exciting, and it adds a bit more volatility to some of my safe and slow funds. :roller_coaster:

Direct equity is far more time consuming, I do find it more exciting, but ultimately you need to ask yourself what is the purpose of this portfolio. Are you trying to have reliable long term growth, or the thrill of volatile investments. I try to strike a healthy balance!

I’d say 50% of my portfolio is very unremarkable, which is why I don’t really talk about it as much. When really this is the cornerstone of my long term strategy! :older_man:

Myself and Yuchen did a very entertaining talk at KCL about portfolio planning and allocation. It might be the kind of talk to repeat and share on here, something for us to think about.

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When you say Funds, are you mean ETF funds or “Fund Fund”? Is it a lot more risk to have ETF Funds than funds? Just because if I go with T212 there is only ETF there. I am trying to build a safe portfolio for the moment as I hear a lot that a second crash could strike soon and I was wondering if I could be safe with ETF Gold, Bonds?

@Marsares can help shine some light on gold ETFs as I don’t spend enough time with commodities.

I wouldn’t worry about an EFT versus a mutual fund. They can both do the same thing, it comes down to the operations and how you trade them.

Regarding ETFs on T212, they are broken up into different types, so it helps to have a picture of how much you want to invest, how you want to break this up, and then find the ETFs or stocks which match.

In practice this is start from the highest level and work down. First how much cash do you want to invest and risk, understanding your risk and what you hope to achieve with that risk has a big impact on how you invest.

e.g. I am comfortable investing £500 as I don’t need this money at a moments notice, I could wait 1-2 weeks to get this money back into my bank. I want to beat inflation so my money keeps it’s value, I am looking at 2-3% return each year. I do not want to take risks for the sake of taking risks, Losing £50 (10%) of my starting investment is too much.

From there that gives you a starting point of what kinds of investments make sense. e.g. Developed markets make more sense as there is less risk, equities are riskier than commodities which are riskier than government bonds/gilts (developed markets where they can print their own money.)

The portfolio I described above is the situation my friend is in who wanted some guidance and he ended up with two main investments with some play cash. 60% into UK gilts ETF, 35% into a UK investment trust, and the remaining 5% he split across whatever interesting stocks he liked.

Now in your case you are worried about another market correction. @Marsares and @krr13 both share your view, there is a nice thread on the market and our portfolios going on here.

If you are worried about the market crashing down again you will want to find negatively correlated investments against equities. The risk being while equities still rise you will end up losing money. The middle ground is investments like gold which increases during uncertainly and during any market shock.

Bonds and gilts don’t perform well when equities are having a good time, but they aren’t negative either just very slow-moving. If the equities market takes a hit you can expect bonds and gilts to increase in value. Expect is the keyword here, we have seen recently bond and equities moving in the same direction at times which is very odd.

With the ETFs, it’s worth checking them out individually and looking at what they hold. Is this an ETF which follows an index, does it has have it’s own index or rules it follows, is this an ETF which invests in other funds/ETFs?

With each of the ETFs on trading 212 you can search in the Genuine Impact app for its trading code/symbol/ticker or its name. We break down ETFs by Return (how much money it’s made compared to other funds in recent years), Risk (this is measuring the up and down spikes are being riskier, if it’s flat and slowly climbs upwards that is low risk and ranks highly), and finally Fees (how much you are charged for holding this, the higher the fee the less profit you can make.)

It sounds like you are interested in low risk, or are you trying to make money with the market correction? Low risk means slow gains but if something bad happens the impact on your portfolio will be very small, but you might still see an impact.

I mention the asset allocation earlier. Looking for low risk ETFs is one thing, the other is where are they based and focused on. Do you want low risk UK or low risk US, or even low risk global exposure?

My personal view on what happens in a second crash to gold and bonds? Gold will shoot up as an immediate reaction and slowly decrease as stability returns and shock fades. Bonds will also see a sell off as people panic into thinking everything is worthless, then see an increase as they become a safer way to make a return for less risk while equities sort themselves out again.

Let me know if any of that was helpful! I think I just brain dumped my thoughts on the matter :smiley: I’m sure the other community members can share their views too!

The only safe portfolio is cash. No downside, but very limited upside either.

If you want a defensive portfolio, you’ll need a multi asset portfolio. The way mine worked (disclaimer: am full YOLO equity atm, but will move back to this approach soon) is:

40% treasuries: I went for USA ones, but could use other government ones. However, Some countries like U.K. have negative yields on some durations. Either way, have a good mix of durations - 212 misses many of them, so I went for the VUTY ETF which is USA focussed with a basket of durations.

12% gold: I went for a physical gold ETF, plus a few miners mixed in. You could take the GDX ETF for miners, but I went for a split between Sandstorm and Franco Nevada.

20% sector equities: defensive basket split across utilities, consumer staples, healthcare and REITs.

Again, 212 misses some of the ETFs so for some you can pick stocks. You can find the relevant ETF, like XLP for consumer stables, and pick some of the top holdings as individual stocks.

If you feel the economy may slowly expand, you could swap out consumer stables and healthcare for energy and tech.

20% factor equities: I went for low beta and dividend yield. There are a few ETFs around this on 212. MinVol is a low beta one, for example.

Rest cash, although you can decrease some of the factors or equity exposure and up your cash position.

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