I use a target portfolio as a performance benchmark and as a guide to where to invest. Now and then I make tweaks to bring it in line with what I want to do. I am increasing the allocation to futures and commodities and reducing the allocations to credit and real assets. Futures and commodities go from 5% to 10%, real assets from 12% to 10%, and credit from 10% to 7%.
This is related to wanting to do more trading. I am having more and more trade ideas. I think, like Karsten Jeske, I won't be satisfied to just sit and watch my portfolio. I want to do something active to generate income. He sells S&P 500 options. My latest idea–which I haven't implemented yet–is related to that. But I am also doing lots of different things which are different to just buying funds (or startups) and waiting:
1. Gold: I buy gold when the price falls and sell when it rises. Part of my gold exposure is now in a December futures contract (50 ounces).
2. Australian Dollar: I have Australian Dollar Futures as a currency hedge. Some day I will get rid of that hedge.
3. Individual stocks: Currently, I have ZIM, Treasury Wine Estates (TWE.AX), and Regal Partners (RPL.AX). These are all valuation stories.
4. Bitcoin: I am again accumulating bitcoin after selling out of it.
5. URF: This is a listed fund on the Australian stock market invested in US residential property. It is in its final stages of winding down, but still trading below net asset value.
6. Trading funds around NAV: I am prepared to trade almost anything that significantly deviates from net asset value. This includes paintings on Masterworks, properties on Assetora, and all the closed end listed funds I am invested in.
I like doing it, but also feel like I should be doing something to earn a living 😀 with our high level of spending relative to most retirees.
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