[US stocks] Decline slows, but a deeper drop is feared. Reconsider investment allocation.
Hello, Lehman (@Lehman1980).
The U.S. stock market continued to be volatile in September.
Over the weekend on Friday the 25th, there was a rally into the close, but for a while I expect unstable price movements.
This week the S&P 500 index fell on a weekly basis for the fourth consecutive week.
https://www.bloomberg.co.jp/news/articles/2020-09-25/QH8BLZDWX2PS01
The November 3 presidential election, additional economic stimulus that remains undecided, Supreme Court justice issues, and U.S.–China tensions (recently regarding the sale of the TikTok business),
a second wave of COVID-19 in Europe, and a hard Brexit re-escalation, with many people seeming to want to assess these uncertainties.
https://www.bloomberg.co.jp/news/articles/2020-09-24/QH63S2DWX2PV01?srnd=cojp-v2
https://jp.reuters.com/article/usa-court-ginsburg-direction-idJPKCN26E1NH?il=0
https://jp.reuters.com/article/tiktok-us-employment-idJPKCN26E0PK?il=0
＜S&P 500 index closing price and intraday high 3,580 (20200902)＞
AAPL, MSFT, AMZN have finally rebounded. In the sector, part of technology and utilities rose.
Financials and energy sectors have fallen sharply. (Source:FINVIZ)
SBI Securities account summary. (September 25 close)
Main ETFs declined, turning negative.
Total realized losses and dividends accumulated yield a$7,200 loss.
Due to yen appreciation, I converted about 1.5 million yen to dollars and swapped several holdings including stop-loss, so
stock holdings are about $64,000 and available cash (MMF) is about $43,000, making the ratio 60:40.
Currently I convert dollars when the rate is below 106 yen per dollar and aim to convert to yen above 110 yen.
Purchased and sold securities
Buy: AAPL (5→15) MSFT (10) PYPL (14) SPYD (680→700) VT (400→430)
Sell: ABBV (10→0) PRU (40→0) RDSB (20→0)
I generally allow a 10% unrealized loss on individual stocks, so I cut losses on the steep drops of ABBV and PRU. RDSB as well.
In addition to increasing AAPL and ETF purchases, I repurchased two previously held stocks.
MSFT (Technology - Software) dividend yield: 1.08%
Software and cloud services focused on Windows and Office.
PYPL (Finance - Credit services): Online payments, remittances giant
Dividend yield: none, however, active in buybacks. In 2019 they borrowed to execute buybacks.
Revising investment allocation
Initially, I planned an ETF core with high-dividend individual stocks as satellites, but
I would like to adjust that a bit.
Keep stock 70 and available cash 30 as is,
＜Core＞
Global stock ETF
VT (40%)
＜Satellite＞
High-dividend ETFs
SPYD (15%→10%)
PFF (5%→10%)
Individual stocks: 4 or 5 stocks (10%)
Currently I hold 2% each of AAPL, BTI, MSFT, PFE, PYPL and will adjust as needed.
I had been selecting high-dividend individual stocks, but I have decided not to be particular about them.
For the time being, I plan to buy more VT and PFF and adjust the rest.
