| -0.19% | 5.21% | 6.12% | 0% * |
| September | YTD | 1 Year | Fund Flow |
* Fund flow is for the full month of October
Overview | EOM October 2024 |
October saw a downturn all around because of portfolio being heavily weighted towards fixed income. Few highlights for the portfolio this month were:
- Portfolio saw 8 drawdown days throughout the month. The moves in fixed income were so drastic the portfolio did no recover from it.
- The addition of TLTW in the beginning of the month proved to be a mistake as it kept degrading, currently down 6% from purchase price.
- Surprisingly equities and Gold kept doing better throughout the month.
- Market outlook now seems uncertain because of the ongoing elections and how much sway they have on the market.
- This month was very hectic on personal front hence was not able to keep abreast with all the ongoing market changes.
There is no graph of the month this time as market and economic indicators are all over the place currently.
The portfolio’s positions will all be exited out or dialed down in the first week of November as the risk-reward ratio seems heavily skewed.
Sometimes you have to just agree that you do not understand the market moves and move to the sideline until things starts becoming more clear.
Gold is moving higher, DAX is moving higher, Bonds yields are moving higher, equities are moving higher. The worry of inflation picking up again is causing fixed income market to go in a downward spiral.
Allocation Target | EOM October 2024 |
Allocation will be moved to 0 across the board except for short term Treasury.
Leverage/Hedging Rules | EOM October 2024 |
No change has been done in the leverage/hedging rules since May.
Current State | EOM October 2024 |
The portfolio has started to buckle under pressure caused by the wild moves in fixed income market. The moves are unnecessarily extreme at this point in my opinion.
Performance | EOM October 2024 |
The performance of the portfolio was impacted by the fixed income market moves and saw downward moves throughout the month.
 1 Yr Return Since Inception |  Portfolio vs SPBDUB3T |  Portfolio vs CPI |
The portfolio saw downturn in the second half as prospectus of Trump winning the election strengthened, and economic outlook still remains strong.
Addition | EOM October 2024 |
No new position was added.
Subtractions | EOM October 2024 |
No position was removed.
Holdings | EOM October 2024 |
Below are the top 10 positions in the portfolio
| Name | Category | % portfolio |
| US Treasury 12/17/2024 | Government Bond | 29.52 |
| US Treasury 12/26/2024 | Government Bond | 15.33 |
| Alpha 1-3 Month (BOXX) | Government Bond | 13.38 |
| US Treasury 11/05/2024 | Government Bond | 6.23 |
| PIMCO Dynamic Income (PDI) | Multisector Bond | 2.45 |
| Nuveen CA Quality Muni Inc (NAC) | Muni Bond | 2.39 |
| iShares 20+ Yr Treasury (TLTW) | Government Bond | 2.27 |
| Virtus SEIX Senior Loan (SEIX) | Commercial Bond | 2.26 |
| First Trust Senior Income (FCT) | Commercial Bond | 2.22 |
| Blackrock CA Quality (MUC) | Muni Bond | 2.08 |
| Blackrock CA Muni Income (BFZ) | Muni Bond | 2.07 |
| iShares Interest Rate Hedged (HYGH) | High Yield Bond | 2.00 |
| First Trust Long/Short (FTLS) | Long/Short | 1.81 |
This month moved bunch of Treasury allocation to Alpha 1-3 Month box spread ETF just ti improve taxation benefit.
 |  |
Top 10 Performers | EOM October 2024 |
Below are the top 10 performing positions.
| Name | Category | % gain | % portfolio |
| JPM Hedged Equity (JHQAX) | Option Trading | 7.26% | 0.47 |
| Nuveen Ca AMT Free (NKX) | Muni Bond | 6.90% | 1.14 |
| FT Buffer Gold (BGLD) | Gold | 6.58% | 0.30 |
| JPM Hedged Equity (JHDAX) | Option Trading | 6.36% | 0.40% |
| JPM Hedged Equity (JHTAX) | Option Trading | 6.35% | 1.50 |
| DNP Select Income (DNP) | Utilities | 5.67% | 0.37 |
| Nuveen CA Muni Value (NCA) | Muni Bond | 5.26% | 1.66 |
| IShares MSCI (HAWX) | Foreign Large Blend | 4.74% | 0.34 |
| FT GLD (IGLD) | Gold | 4.56% | 0.28 |
| PIMCO Dynamic Income (PDI) | Multisector Bond | 4.52% | 2.45 |
Bottom 10 Performers | EOM October 2024 |
Below are the bottom positions, from now on positions which do not have a >0 % loss will not be included.
| Name | Category | % loss | % portfolio |
| iShares 20Yr Bond (TLTW) | Government Bond | 6.15 | 2.27 |
| Madison Covered Call (MCN) | Option Trading | 2.78 | 0.31 |
| Fidelity Balanced Fund (FBALX) | Allocation | 1.40 | 0.24 |
| Vanguard Inter Term (VFITX) | Government Bond | 1.18 | 1.38 |
| Morgan Stanley Morgatge Sec (MTGAX) | Bond | 1.03 | 0.45 |
| Pacer Fund (FLRT) | Floating Rate Bond | 0.55 | 0.99 |
| Blackrock CA Muni (BFZ) | Muni Bond | 0.47 | 2.07 |
| Virtus Snr Loan (SEIX) | High Yield Bond | 0.34 | 2.26 |
| First Trust Snr (FCT) | High Yield Bond | 0.02 | 2.22 |
| Nuveen Multi Asset (NMAI) | Global Allocation | 0.02 | 0.49 |
Position Analysis | EOM October 2024 |
Subtractions
No subtraction was done in this month.Additions
The only large position increase was done in BOXX, away from Treasury to ensure better long term tax benefit.
The median appreciation for all the positions in the portfolio stands at 3.3%, below graph shows the aggregate of all the positions held in the portfolio.
The current yearly dividend yield of the non-treasury portfolio stands at 7% in which 30% of the yield is Federal and State tax exempted Muni bond ETF income.
That’s it for this month, we will meet now at the end of November with possibly large portfolio adjustments or none depending upon how the first week of November goes. The elections are going to prove very shaky for the equities and bonds.
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