Rebalancing and asset replacement
upon monthly review
The “TeleTrade Safety” investment portfolio is the most conservative investment among the other investment portfolios TeleTrade offers. S&P500 serves as an investment benchmark for this portfolio yield. Distribution of the investments in several asset classes allows for the mitigation of risks within the portfolio and the expectation of reasonable returns.Depending on market conditions, the share of assets in the portfolio may vary.
1) Target price for S&P 500 index upgraded to 4300 points
2) Stop-loss for S&P 500 index raised to 3100 points
1) Target price for Microsoft shares (MSFT) was upgraded to $270
2) Target price for Berkshire Hathaway (BRKb) shares upgraded to $280
3) Boeing shares were added to the portfolio with a target price of $320
1) Target price for S&P index raised to 4200 points
2) Stop-loss for S&P was lowered to 2750 points
1) Target price for the Coca-Cola (KO) was upgraded to $60
2) Target price for Apple (AAPL) shares was upgraded to $150
3) Target price for Berkshire Hathaway (BRKb) shares upgraded to $260
1) Target price for the S&P 500 broad market index was upgraded to 3,900 points, while moving the stop-loss order up to 3,199 points.
2) Target price for Apple (AAPL) shares was upgraded to $145
3) Target price for Berkshire Hathaway (BRKb) shares upgraded to $245
1) The size of the investments in the S&P 500 index was decreased by 0.11 lots. The corresponding deals were made with a loss of $3.
2) To diversify the portfolio and increase its stability following shares were acquired:
• Apple shares for 0.1 lots were bought with a growth potential of 28%
• Coca-Cola shares for 0.4 lots were bought with a growth potential of 17%
• Berkshire Hathaway shares for 0.02 lots were bought with a growth potential of 17%(br> 01.10.2020
No changes were made.
1) The structure of the portfolio was changed after new buy order of Microsoft shares was placed. Target price for Microsoft was revised to $250 per share. Shares were bought on 0.08 lots with stop-loss at $176.5.
2) S&P 500 index is still dominating the portfolio structure.
3) Potential of the S&P 500 index growth was revised to the target at 3,700 points with 18% growth.
1) The structure of the portfolio was changed as S&P 500 index is dominating the portfolio. The decision to increase the share of the index was made considering the enhanced overall background and increasing potential of its rapid growth to the all-time highs by 4%.
2) Potential of the S&P 500 index growth was revised to the target at 3,600 points with 15% growth.
1) The structure of the portfolio was changed as the share of Microsoft was increased and another buy order was made. The decision was made due an increasingly high fundamental growth potential of Microsoft.
2) Some targets for assets in the portfolio were revised. Growth potential of Facebook was upgraded to $275.73 or by 21%, Apple’s growth potential was raised to $413.72 or by 30%, Microsoft target price is up to $226.85 or by 19%
Several assets, which each play a certain role, are included in the portfolio to achieve designated targets. The S&P500 index serves as a key driver for the portfolio. To enable the portfolio to perform desired results, growth stocks are included. Market conditions could cause the change of assets share in portfolio structure.Depending on market conditions, the share of assets in the portfolio may vary.
Portfolio performance: +33.8%
Expected profit: 51.7%; risk: 14%
Portfolio performance: +28.3%
Expected profit: 50.2%; risk: 20%
Portfolio performance: +24.7%
Expected profit: 38.7%; risk: 15%
Portfolio performance: +27.2%
Expected profit: 34.2%; risk: 8%
Portfolio performance: +22.1%
Expected profit: 33.8%; risk: 8%
Portfolio performance: +13%
Expected profit: 28%; risk: 12%
Portfolio performance: +16.1%; S&P 500 index: decline by over 6%
Expected profit: 27.8%; risk: 9%
Portfolio performance: +21%; S&P 500 index: 7.8%
Expected profit: 27.8%; risk: 9%
Portfolio performance: +11.98%; S&P 500 index: 4.3%
Expected profit: 23.4%; risk: 17%
Portfolio performance: +5.8%; S&P 500 index: 3.2%
Expected profit: 18.5%; risk: 20%
The aggressiveness of trading is calculated based on the volatility of the average daily trading result of PAMM-account.
Ranges of aggressiveness:
The S&P500 stock index is a key element in the portfolio. S&P 500 is a highly diversified financial instrument and is represented as futures contract in the portfolio. S&P 500 is recovering from the plunge in March caused by the coronavirus pandemic. S&P500 has significant potential that will be released as the US economy recovers along with the US Federal Reserve support and interest rates close to zero.
One of the largest software producers for the computing industry, including PC’s, game consoles, personal digital assistants, mobile phones and others. Microsoft is the producer of the famous and widely used operating systems – the Windows OS Family. The return on equity (ROE) for 2019 was at 42.7%. Company’s debt is at a reasonable level as D/E multiplier shows it at the level below one. Operating performance indicators are impressive. Earnings rose by more than 13% yoy for the last three years. EPS demonstrates strong growth as well. The company’s assets grew by more than 10% in average. The stock has high growth potential with dividend yield of 1.13%. The $10 billion contract with US defense ministry to develop cloud technology will serve as one of the major drivers for the Company and its stocks.
The Coca-Cola Company is a beverage company. The Company owns or licenses and markets non-alcoholic beverage brands, primarily sparkling beverages and a range of still beverages, such as waters, flavored waters and enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, sports drinks, dairy and energy drinks. The Company's segments include Europe, Middle East and Africa; Latin America; North America; Asia Pacific; Bottling Investments, and Corporate. Coca-Cola is considered as the most recognizable and valuable brand in 2015-2020. The major driver for the company’s growth will be the recovery of the market after a decline as new stimulus measures would be approved in the United States, and with the improvement of the pandemic situation.
Famous personal computers, tablets, phones, digital players and software producer. One of the pioneers in personal computer manufacturing. Innovation and design made Apple iconic among consumers of digital devices with unique reputation that could be compared with a religion. The recovery of the market after new stimulus measures for the U.S. economy would be approved will serves as a major driver for the company. It will also benefit from the improvement of the situation with the pandemic.
Berkshire Hathaway — an American multinational holding company headquartered in Omaha (Nebraska, U.S.). The company is known by the leadership of Warren Buffett. The company serves as a management entity for several companies from different sectors. The key driver for Berkshire Hathaway will be the recovery of the market after a decline as new stimulus measures would be approved in the United States, and with the improvement of the pandemic situation.
Boeing is one of the leading aerospace manufacturers. It produces airplanes, satellites, telecommunication equipment both for civil and military purposes. The company is headquartered in Chicago, Illinois. Company’s production facilities are located primarily in Seattle, Washington, where the company was founded back in 1916. Boeing foe decades is a leading aerospace company in the United States, the largest exporter and major employer of the NorthWest coast. Boeing corporation is one of the twelve largest companies in the U.S. It is also one of three major defence contractors (together with Lockheed Martin and Raytheon).
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