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Evolution Of Retail / Brace For Recession: Portfolio 3 Part 3


Short interest has reverted.

Specific headline risk has dissipated.

Fear of a global economic downturn intensifies.

The portfolio is up 17% but is being outpaced by the competition.

Portfolio 3 is designed to capitalize on the evolution of retail as the consumer, markets and overall economy brace for recession. As of 7/5 three of the four equities held in Portfolio 3 are up. Amazon (AMZN) is up +26%. Starbucks (SBUX) is up +36%. Square (SQ) is up +26%. Tesla (TSLA) is down -25%.

As of 7/12 AMZN is up 3% from its 7/5 price. SBUX is up 2%. SQ is up 10% and TSLA is up 5%.

On a stock for stock basis, as of 7/5, the portfolio is up +18% for the year. If proportionally allocated it is up +17%. In comparison the Nasdaq Composite is up +24% over the same period. The Dow is up +15% and the S&P is up +19%.

In the time between Part 2 and 3 the short interest has reverted. TSLA is now the most shorted. Specific headline risk has dissipated but general fear of a global economic downturn has intensified. Overall the competition is outpacing the portfolio.

Toyota (TM) is up +8%. AMZN has been outpaced by Facebook (FB) and Netflix (NFLX), which are up +44% and +42% respectively, but has surpassed Google (GOOG), +8%. SBUX is beating Dunkin Brands (DNKN) which is up +24% and Paypal (PYPL), up 36%, is outpacing SQ.