Monthly Asset Allocation

With the continued decline in the markets, some changes continue to take place in the monthly allocation of the portfolio. We had already had a signal to reduce equity positions in the European zone last month, now the same advice also applies to Swiss stocks. I will therefore focus my next analyses on the Swiss stocks in my portfolio in order to see whether or not there is reason to sell them in relation to their valuation and their fundamentals.

As for US stocks, the trend remains positive, but the stocks are still excessively expensive overall. It is therefore better not to venture too much into them for the moment and to hold on to stocks that still offer good value for money.

No change for Japanese stocks, still positive trend and attractive price levels. It is the only developed country that remains cheap at present.

I have now added a line for Canada in my summary table below, because my portfolio is starting to include several stocks from this beautiful country. I recently told you about West Fraser Timber and I will soon also present other titles that I acquired recently. Overall, the Canadian market is not optimal at the moment, because it follows a negative trend and it remains quite expensive. In a top-down approach, we should not go there, but if we come across a few nuggets, like I discovered recently, it is difficult to resist.

Regarding emerging countries, the trend remains positive and the valuation of securities is even more affordable than last month. This is therefore the only equity zone, along with Japan, which currently offers interesting prospects.

For thereal estate Swiss, no change, because it is a fixed and permanent allowance.

Swiss long-term bonds remain in a slightly negative technical trend, but in an improving phase. For the moment the position is still cash, it may be that in the coming months it will return to investment. In any case, given the miserable yield of bonds, the target allocation remains very much in the minority.

Gold is still playing its role as a safe haven in these times, against the backdrop of a trade war initiated by Donald Duck and a new cold war between the Western powers and Russia. The trend is still positive. This "real" asset, along with real estate, really does good in a portfolio when the markets are agitated.

Finally, regarding alternative strategies (long/short & leverage), no change.