Weekly Roundup 2019 CW 05

The days go on fast, and it is now time to make my weekly update. It was a wild week in the markets as investors were forced to process a lot of macro indicators. President Trump has temporarily ended the government shutdown and the markets have reacted positive on Fed’s FOMC meeting.

Market Outlook

Treasury yields ended the week slightly lower as gold pressed higher. The dollar pulled back slightly versus the euro but strengthened against Swedish krona. Lastly, oil finished the week marginally higher as the U.S. placed sanctions on Venezuela’s state-owned oil company, Petroleos de Venezuela (PDVSA).

The ADP National Employment Report was released, indicating a 213,000 private sector seasonally adjusted payroll increase for the month of January, greatly exceeding expectations for 181,000 added jobs. The National Association of Realtors reported that its Pending Home Sales Index declined 2.2% in December to 99, missing expectations for a 0.5% monthly advance and coming off the heels of a 0.7% decline in November. Also this week, the Institute of Supply Management (ISM) reported that the purchasing managers’ index (PMI), which measures the economic environment within the manufacturing sector, advanced 2.3 percentage points in January to 56.6%, outpacing expectations of a 54% reading.

The Portfolio

The portfolio ended the week with 2.22% gain, mainly driven by Boeing (NYSE:​BA) and LVMH (EURONEXT:​MC). My calculated Alpha for the portfolio is 2.75%, based on a risk-free rate at 0.55% (SWE-SO-10Y). The volatility YTD is still low at 1.98 %.

Transactions

During the week I closed my position in Johnson & Johnson (JNJ) and took a loss of 4,654.03 SEK, 5.07%. Doing this since I lost my confidence at the same time as we got the Reuters asbestos news on December 14th and the stock took a hit of -13.21% intraday. I opened the position September 19th @ 139,90 USD and had been selling and buying to lower the cost basis. I didn’t do my due diligence, and because of that, I had to pay with a loss.

Daily closing price of Johnson & Johnson stock since May 29, 2018

The cash from selling Johnson & Johnson got used to buying Bank of America Corp (BAC) & JP Morgan Chase & Co (JPM). I also raised my stakes in my Emerging Market funds. The position is now about 7,4% of the portfolio.

The depots in the portfolio

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