Pi Portfolio Up 19.87% Since Last Month


Here is an excerpt from last week’s ENR Pifolio Update.

The ENR Pifolio holds a $10,000 theoretical investment in each of the shares that are ranked (or were and are still ranked hold) BUY in the ENR Asset Management “Advisory Extra Report”.  This is a monthly report offered only to ENR’s investors with the largest portfolios who choose their own investments with ENR’s assistance.

In our February update Eric Roseman CEO of ENR wrote:  For long-term investors, NOW is the time to start chipping away at some great bargains. If you’re not buying or at least nibbling at current prices in the context of a long-term investment horizon, then you’re not doing your job as an investor.

Yes, this is still a bear market. The thought of buying any stocks at these levels may seem daunting, but it’s really how the shrewdest investors in the world make money. “Buy low, sell high.”  That’s the famous adage long proclaimed by some of the most successful investors. It’s really common sense. But in all honesty, it’s much harder to put those words into action amid a bloodletting in the financial markets. Indeed, almost daily since late December, global markets have declined – and quite sharply on many trading days. It takes a bold, emotionally unattached investor to buy stocks when most individuals are selling. But that’s how smart investors make money.

So my advice to investors now is to stay defensive, cashed-up and start buying very gradually.

Eric’s recommendation was good.  This ENR Pifolio had a $136,297 value at the last ENR Update on February 9, 2016.  Here was the portfolio then.

trade stops enr acct

trade stops enr acct

Here were the shares in the portfolio at that time.

enr asset management

 

The ENR Pifolio made a nice jump in the last month!  The value is now $163,357. 

Here is the portfolio as of March 14, 2016.

enr pifolio

Click on images to enlarge

A big part of the increase goes to the position of Freeport-McMoRan Inc. (Symbol FCX).  The timing was just right and the Pifolio entered at $4.89 and the share price has jumped to $9.55.

Freeport McMoRan

Another big winner for the month was Wynn Resorts (Symbol WYNN).  Their price rose 45% from $59 a share to $80.

wynn

ENR timed these purchases perfectly, but we should not count on those shares staying at this price.  The Volatility Quotient (VQ) of FCX is 39.3 and WYNN 32.7.

This means that the prices of these shares are likely to bounce up and down a lot, so much so that trailing stops are difficult to use.  Investors who hold these shares should watch them closely and take profit or hold on for the long term.

However overall, according to Tradestops.com, this is a low risk portfolio with a Volatility Quotient (according to Tradestops.com) of just 10.18%.  The lower the VQ the less volatility we should expect. 

The Tradestops.com smart trailing stop system assigns a Volatility Quotient to every share listed and tracks them and alerts us to the results of algorithm based models.  These models track moving averages of a huge spread of  global shares. The Tradestops.com system tracks each share, calculates velocity of the price and shows when the share price is reaching a velocity where historically the price has shifted from good to poor value or vice versa.   These alerts let us know that it is time to look more closely at a specific share in our portfolio, or a share that we have an interest.  The alert tells us its time to evaluate that share to see if its purchase or sale might improve our unique financial circumstance.

Tradestops also provides a Volatility Quotient Analyser, so we can look at the VQ by share as well as by portfolio.

Here is a VQ Analysis of the ENR Pifolio showing the low risk, medium risk and high risk percentages.

tradestops analysis

I recommend that if you are an investor,  subscribe to the professional version of Tradestops. Get full details here.

44.98% of the portfolio holds low risk shares and shows how a properly designed value portfolio reduces risk but can also deliver extra profits.

To see the updated ENR Pifolio as of March 14, 2016, subscribe to the Purposeful investing Course below.

For those who want a portfolio manager’s assistance and have $100,000 or more,  I recommend the ENR’s Advisory Extra package.  Subscribers to this package are entitled to the following services:

Quarterly portfolio/account review
Portfolio planning and future projections
Automatic portfolio rebalancing
Tax-loss harvesting

For more information on how to use the ENR Advisory service, contact Thomas Fischer at Thomas@enrasset.com

Gary


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