My High Beta Allocation

With the remaining 10% of my assets divvied up between high beta tech and life sciences, I decided to buy ICPT, JAZZ, SGEN, N, YELP and PANW.

The allocation is now complete.

The Allocation is Nearly Complete

I had second thoughts about my second thoughts and decided to allocate dollars earmarked for long term capital appreciation. We are talking about a wide swath of securities, so I will not inundate this blog with the details. If you are curious as to what I bought, all trades are posted and listed inside of The PPT.

The details are fairly straight forward. No position is bigger than 5% of holdings. Everything is divvied up between the 7 principal sectors of the market. 66% of the stocks earmarked for long term capital appreciation  are mega caps, greater than $10 billion in market cap. The median cap in the S&P 500 is $18 billion. I am purposely imitating the index.

33% of the stocks are under $10 billion in market cap. I set aside 5% of my capital for short term trades and another 10% will go towards high beta stocks, intended to be long term holds. The mantra of the allocation is GARP (growth at a reasonable price). And, finally, 25% of the capital is reserved for cash because of seasonality. In the event of a market pullback, the 25%, which is now placed in TLT as a cash equal, will be liquidated and allocated amongst the current holdings.

The only thing left to do is position into the high beta names, which I will attempt to time perfectly.

Fly Buy: $TLT

This is a large purchase, which is replacing my cash for the time being.

I FOUND SOMETHING TO BUY

I bought JAZZ, into the close.

I don’t give a shit about war and rumors of war. I hereby declare the market is going higher.

 

The Farmer is My Slave

“Go fetch me a bushel of corn. I will not be paying very much for it either.”

The simple fact of the matter is, the US farmer are stuck in a corn maze, all to do with the sun and a cooler than expected summer. These summer winds will bring forth RECORD corn crops. As such, the price of corn shall plummet to the dirt, offering corn farmers nothing but misery.

To profit from this, “The Fly” has decided to chase the shares of PEIX here. Gasoline demand is robust and we have a criminally insane administration who just might up the mandated 10% ethanol blend to something even more egregious. With corn low and gasoline high, ethanol producers are in a sweet spot (extra corn).

Other ethanol plays include REX, GPRE, BIOF and AMTX.

BURN IN HELL JANET YELLEN!

Going against her better judgement, I disobeyed Grandma Yellen and averaged down in shares of RUBI. Its been an awful performer and I really shouldn’t be buying more of this offal. However, it’s down 9 consecutive days and this whole sell off due to Janet Yellen suggesting valuations are stretched in social media and biotech has me sick to my stomach.

yayo

The manipulator in Chief doesn’t like the market to be manipulated. How ironic.

My High Beta Allocation

With the remaining 10% of my assets divvied up between high beta tech and life sciences, I decided to buy ICPT, JAZZ, SGEN, N, YELP and PANW.

The allocation is now complete.

The Allocation is Nearly Complete

I had second thoughts about my second thoughts and decided to allocate dollars earmarked for long term capital appreciation. We are talking about a wide swath of securities, so I will not inundate this blog with the details. If you are curious as to what I bought, all trades are posted and listed inside of The PPT.

The details are fairly straight forward. No position is bigger than 5% of holdings. Everything is divvied up between the 7 principal sectors of the market. 66% of the stocks earmarked for long term capital appreciation  are mega caps, greater than $10 billion in market cap. The median cap in the S&P 500 is $18 billion. I am purposely imitating the index.

33% of the stocks are under $10 billion in market cap. I set aside 5% of my capital for short term trades and another 10% will go towards high beta stocks, intended to be long term holds. The mantra of the allocation is GARP (growth at a reasonable price). And, finally, 25% of the capital is reserved for cash because of seasonality. In the event of a market pullback, the 25%, which is now placed in TLT as a cash equal, will be liquidated and allocated amongst the current holdings.

The only thing left to do is position into the high beta names, which I will attempt to time perfectly.

Fly Buy: $TLT

This is a large purchase, which is replacing my cash for the time being.

I FOUND SOMETHING TO BUY

I bought JAZZ, into the close.

I don’t give a shit about war and rumors of war. I hereby declare the market is going higher.

 

The Farmer is My Slave

“Go fetch me a bushel of corn. I will not be paying very much for it either.”

The simple fact of the matter is, the US farmer are stuck in a corn maze, all to do with the sun and a cooler than expected summer. These summer winds will bring forth RECORD corn crops. As such, the price of corn shall plummet to the dirt, offering corn farmers nothing but misery.

To profit from this, “The Fly” has decided to chase the shares of PEIX here. Gasoline demand is robust and we have a criminally insane administration who just might up the mandated 10% ethanol blend to something even more egregious. With corn low and gasoline high, ethanol producers are in a sweet spot (extra corn).

Other ethanol plays include REX, GPRE, BIOF and AMTX.

BURN IN HELL JANET YELLEN!

Going against her better judgement, I disobeyed Grandma Yellen and averaged down in shares of RUBI. Its been an awful performer and I really shouldn’t be buying more of this offal. However, it’s down 9 consecutive days and this whole sell off due to Janet Yellen suggesting valuations are stretched in social media and biotech has me sick to my stomach.

yayo

The manipulator in Chief doesn’t like the market to be manipulated. How ironic.

Previous Posts by Dr. Fly
BUBBLELICIOUS
25 comments
Back to Food
24 comments