tadamichi
Market Recap
The first half of 2023 was strong for the S&P 500, with the index ETF (SPY) returning 16.8% including dividends. If we look under the hood, however, we see narrow leadership with just 3 of 11 sectors driving most
H1 2023 Portfolio Review - Revenge Of The Mega Caps
Summary
- A resurgence in mega-cap growth stocks caused my portfolio to underperform the S&P 500 in the first half of 2023.
- Key lessons learned were that personal debt is sometimes OK if it means staying invested, watch out for tax implications, and pay attention to changes in market sentiment.
- Persistent high inflation and higher interest rates for longer could bring my portfolio back to outperformance, but the "risk" of a soft landing and continued market melt-up remains.
I retired early after 22 years in the energy industry with roles in engineering, planning, and financial analysis. I have managed my own portfolio since 1998 and have met my goal to match the S+P 500 return over the long term with lower volatility and higher income. I mostly write on positions I already hold or am considering changing. I prefer to hold positions for the long-term unless there is a compelling reason to sell. I look for investment opportunities without regard to asset class, market cap, sector, or yield. I would rather maximize total return over time by buying when price is low relative to intrinsic value.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of IVW, AGG, BP, IJR, IEMG, IEFA, T, PDO, TGT, ETN, NAD, BRK.B, MITSY, PAG, TTC, ABBV, ATVI, TVE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Long all positions listed in the Appendix.
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