Deanco Investment “Group” Update – April 2020 (Month 30)
There is no group, it is just me and my money. Each month I’m sharing my investment portfolio, individual investments, and performance (good or bad). This is my April 2020 update (30 months of tracking it).
Transactions This Month
Thinking: Frozen! I didn’t do anything this month! Well, I watched Joe Exotic, but I made no transactions this month. After the last couple of months, I’m reminded of a quote from Joe “I’m never going to financially recover from this…” I didn’t even do my regular monthly retirement account contributions. The markets were getting whipsawed around recently with all the COVID related turmoil. There has been panic here and there that presented some buying opportunities along the way. The drawdown in stocks was super-fast. The rally, I believe a normal old bear market rally, was also quick. Since then, stocks have traded sideways. I decided not to do much during those times because I didn’t think things got cheap enough along the way. I ultimately believe the end of all this COVID crisis stuff is not over. I started the month of April off thinking that the bottom in stocks is still ahead of us. I end the month thinking the recovery will not be as ‘flip the switch back on’ as some have said. It might be even slower than I believed (because people are still flipping out over everything). This will have massive impacts on the financial system. I believe no one can understand what is about to happen (which is understandable because no one has ever seen anything like this).
Even though I didn’t make any specific portfolio moves I did do a good deal of learning. This month I listened to many very thought-provoking podcasts. I listened to some great content to learn about what is going on with all the stimulus, inflation, deflation, hyperinflation, stagflation, quantitative easing, fiat currency, and debt creation. I spent a decent amount of time researching commodity futures as the price of oil went negative during the month. I wanted to be sure I was ready to ride out whatever lies ahead in my commodity ETF for that.
Ultimately the only thing I did during the month was to stack up cash. I’ve been in this mode for several months. I’m not even tracking this cash stacking as a part of my overall portfolio tracking here right now. It is still over in my short-term accounts. If things return to normal, I’ll deploy it into my portfolio. If things don’t return to normal and I need some extra cushion I’ll have it. I’ve grown much more cautious in my old age! Fun times!?!
Holy crap?!? Did I outperform my blended benchmark this month?!?! Somebody check and see if Hell froze over in April! I even almost outperformed $VT as well (while being underweight stocks).
2020 (and 2019) have still been miserable years for my portfolio. I’m surprised I have any money left!
Asset Class Allocation
Stocks bounced back a bit in April so I am less underweight than I was. Regardless, I am not in a hurry to shift assets into stocks right now. I do not think we have seen the end of the ill effects of COVID on the world’s economy.
For full update download this ^^^ PDF.
My individual positions (and all kind of additional information about each of them) can be found here:
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