Dear Copiers, Followers and Fellow Investors,
Today is the last day of the Year 2021. A year full of volatility, covid and out-performance of Mega Tech over value and small caps.
We started the year with over 20% and then reached over 35% in February. What a start it was! We left other PIs in the dust and had a Risk Score of 3-4. $ASXC and $BNGO brought us as much as +1500% and we reached over 2200 Copiers and $4M AUM. I was Featured in Editor’s Choice and the future looked bright.
Since then, it has not been so rosy. Small caps have commenced their downward trend and, although we still had +31% in H1, we deployed cash into China a bit too early and so UK, small caps and China destroyed the profit generated in the first half, sending us to overall result of around -5% for the Year. Last year we made +40%, so the 2-year result is close to my long-time average of about +20%, but the H2 certainly tested our nerves.
We are finishing the last days strong. Yesterday, the Indices were negative but we were positive as much as +3.4%. Today we are adding another 0.6% before the US opens due to good performance of $1585.HK and Aston Martin as well as our short on $NSDQ100 and leveraged position on Takeaway.
$SPX500 had a good year and, thus, our under-performance in the H2 hurts even more. Having said that, small caps are historically low compared to SPX and value is historically low compared to growth. On top of that we have China trading at very low multiples and the UK still not recovered. With all that, I am 𝙩𝙖𝙧𝙜𝙚𝙩𝙞𝙣𝙜 𝙖 𝟯𝟬-𝟱𝟬% 𝙧𝙚𝙩𝙪𝙧𝙣 𝙞𝙣 𝟮𝟬𝟮𝟮.
I fundamentally believe that stocks such as Boxlight (BOXL) and Aston Martin (AML.L) will have a tremendous year. I will focus on taking profit from ideas that worked well (recently MU and TMHC) and redistributing into the ideas such as BOXL and AML. I will also continue shorting, be it Tesla, Nasdaq or other stocks. Finally, I will aim at keeping a bigger cash balance to take advantage of buying the dip opportunities as well as some swing trades or alternative assets such as FX and Commodities. (some good trades on USDHUF and others were made in 2021).
Perhaps most importantly, 𝙄 𝙬𝙤𝙪𝙡𝙙 𝙡𝙞𝙠𝙚 𝙩𝙤 𝙩𝙝𝙖𝙣𝙠 𝘼𝙇𝙇 𝙈𝙔 𝘾𝙊𝙋𝙄𝙀𝙍𝙎 who have been with me throughout 2021. Most of you have been very supportive and resilient and I am sure we will all be rewarded for sticking with the strategy and allowing the time needed for it to work. The volatility has been bigger than expected in 2021, but we are at very low levels for most stocks, which creates a great opportunity to invest. Many of you are doing so and I am eternally grateful.
Despite a tough year, I hope that you will raise a glass to our mutual success in 2022 and beyond! 🥂
All the very best,
PS. All my investments and portfolio are public. To join eToro please follow the link: https://bit.ly/3i7Yo3C
My Public Profile: https://www.etoro.com/people/mj_lux
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