June Performance Review And Strategy Commentary
Above is our performance versus the market. As you know the market's seen big volatility but despite that our performance has consistently hit new highs. Above is through June's month end. We are about two years into running our model portfolio.
The steady performance is achieved in several ways but first know that our portfolio has much less exposure to the market than most portfolios and for sure any pure-play ETF.
Same Performance, Much Less Exposure, Much Less Vol.
Our model portfolio runs typically with just -20% to +20% net exposure to the market. That compares to +100% exposure to most ETFs.
We're using ETF shorts against our Buys and Strong Buy Ratings so that we have minimal exposure to the market which helps to avoid the big swings. It also allows us to react quickly to changes in the market.
Our portfolio also typically has gross exposure around 50%. That means we are only using on average about 1/2 of like-assets that someone would have invested.
If someone ran $1mm this portfolio would be using about 1/2 of that or $500,000 of that.
So matching the market performance with less exposure, less cash invested and much lower swings are very strong performance metrics.
Subscribers Are Maximizing Our Work
Obviously we have subscribers that take our picks and timing and size them differently. I've had customers that take our information and use our data, picks, calls, and timing in ways that fit their own unique strategy and personality. Some want to follow the portfolio to a "t" but nobody needs to be a robot just to follow the portfolio if they've built up their own successful methods. We like the model portfolio because it's a guide to know real time how we feel at exactly this moment.
Recently a member was excited to post in chat, "Just passed 50% profit on cash" using solely our calls. So obviously they built a comfort level in our process and work and are using it within their own investing framework.
We have other members in chat saying they are making big money percentage-wise with the help of our work, using it in their own ways.
Most exciting is when we get big in something which means we think this "thing" is about to go up now. Like we got to 10% in our model portfolio in Tesla on June 29th (out of nowhere).
I think that's our member-favorite type call, when we get to 10% in something. Those are usually our best calls. Great risk/reward and we need to see it work right away.
Tesla listened and worked right away. Thanks for listening Tesla, good work.
Here's where we got to 10% on Tesla.
Obviously people trade how they see fit. We recommend everybody should build on success and trade within their own comfort zone. That comfort zone should be based on profit proof that a level of sizing has proven to be successful and then build on that. Starting with smaller sizings is easier to find initial success and then build off of that success gradual to potentially greater size. I talk a lot about that with subscribers to make sure everybody's building on success rather than just gunning it off the bat.
We hope to continue this great performance. We wish our subscribers continued success.
We have conviction in our process. It's been two years since introducing this service so we have confidence that hopefully these type of performance numbers can continue regardless of what the market offers us.
We have a few drivers to these numbers.
1) Picking great stocks with big upside and a very tight filter process. We have max ten top ideas.
2) Buying them right, getting big when technicals line up with fundamentals, and if wrong, not making excuses and having risk discipline to exit quickly; a critical trader trait.
3) Catching the market right with correct directional exposure.
We call it "multiple ways to win."
All investments have many risks and can lose principal in the short and long term. The information provided is for information purposes only and can be wrong. By reading this you agree, understand and accept that you take upon yourself all responsibility for all of your investment decisions and to do your own work and hold Elazar Advisors, LLC, and their related parties harmless. Opinions given are at this moment and can change rapidly after this is published. All trades are hypothetical to show rating and opinion. All trades exclude relevant transaction costs. We have no holdings in the stocks mentioned unless otherwise noted.