Oh my, oh my, it’s been awhile since we’ve spoken in this format! If you can’t tell from the explanation point I’m pretty excited to be back and writing!

So what has happened since I wrote last? Well pretty much all of 2021! If you want to see a review of 2021 and how my portfolio performed, you can check it out here:

2021: A Year in Reveiw

So now that 2021 is over and we enter 2022 there are a couple of things that need to be done. First we need to rebalance the portfolio based on where each position stands. How do I do this? Well I have a somewhat complex calculator that I created a couple of years ago and finally feel comfortable with the backtested results to fully unleash it on my portfolio.

So what does the calculator do exactly? It gives me multiple valuations based on the financials, compares them to their current state, and then gives me recommendations on whether to BUY/SELL/HOLD and how much of the position I should add.

Currently it is telling me to reduce my holdings by a somewhat significant amount. Seems fairly logical to me with the state of the markets and rising inflation/interest rates. Now this doesn’t mean that I am necessarily moving out of equities but instead into more advantageous positions.

There is something to be said about knowing when to reduce positions, something that I think gets lost when people learn about investing. When you look around at the professionals, you constantly see movement and rebalancing of their portfolios, even their most dearly loved positions when the valuations don’t match their current prices.

Alas, this is something that I am working to get better at, so that I can maximize my portfolio’s returns. In the next post I’ll lay out exactly what I am doing to the portfolio to rebalance.