TRADE ALERT: YARP
TRADE ALERT: YARP
Plus a quick note about a key YARP-focused article on Seeking Alpha today
Today’s trade alerts and trade notes are below the paywall for subscribers. We’d also like to call all of our followers’ attention to an article I published this morning on Seeking Alpha. It is more of a whitepaper on YARP than an article, given its length. In fact, SA now has an audio version of our articles (by a very human-sounding bot), that is 23 minutes long. So if you prefer the “podcast-like” version of this one article, go for it!
Link to it HERE
This article is the most detailed description of what goes on “inside” the YARP portfolio and how I run it for my own family’s money. And it recaps in detail the activities within the portfolio over the past 5 months. I wrote it in response to a request from SA’s editors senior editors, and I was happy to oblige. And, while I readily talk publicly about what stocks and ETF I own or have owned, the position sizes of each holding (now and in the past), which is really what drives the YARP portfolio, is something reserved for subscribers to our service.
I wrote it in a similar style to my shareholder and letters back when I managed mutual funds and an investment advisory firm. I think it gives the most direct insight into what YARP investing is, and why we decided to teach my process to others. I hope it helps.
Now, on to today’s changes in that YARP portfolio
A total of 9 adjustments to the stock mix today (6 position increases, 3 decreases). Importantly, there are several stocks going ex dividend early next week, but several look too concerning chart-wise to increase the positions. As much as I want as much dividend income in dollars as I can get, I never want it at the expense of putting capital at risk. A couple of market sectors have rallied sharply the past several months, and so these otherwise tame stocks are currently priced for perfection. So keeping the positions low is what my analysis concludes.
The portfolio continues to own 40 stocks, following the additions last week. That only 3 of those 40 are at my maximum 5% weight at cost (including 2 which I lifted to that level today) and more than half of the stocks are at my 1% minimum position level speaks to the selective market I see us in right now. Here’s what I did today…