Mechelany Advisors’ MODEL PORTFOLIO has been running in a fully transparent way since January 1st 2014. Its Purpose is to implement the conclusions of our research analytical process in a portfolio managed using institutional liquidity, diversification, risk management and asset allocation processes. In our TRANSACTION UPDATES we keep our reader informed in real time of the transactions in our MODEL PORTFOLIO
Global equity markets are finding it difficult to make additional headways, despite an ever dovish FED and spectacular earnings from the US tech giants.
The European Union fell back into recession in the first quarter of 2021 and we have probably seen the best of the global economic recovery for the rest of the world apart from China.
Our MODEL PORTFOLIO lost -1.88 % on the week, essentially on the back of lower bond markets who did not like the re-affirmed stance of the FED and on a 12 % rally in Bitcoins with “whales” clearly doing all they can to force the digital coin to close above the all-important 57’000 level on the week.
However, over the week-end sellers appeared as China is reviewing the impact of Bitcoin mining on its energy consumption and PayPal and Robinhood are preventing Coin owners to move them outside of their platforms.
In any, case, we have a constant stop-loss on the future at our shorting price of 58790.
Our commodity portfolio was a negative contributor with the exception of our Short in Corn, and Copper hit an all-time high.
Facebook and Amazon delivered bumper results sending their share prices up respectively +7% and + 3.5 % higher, but the general feeling is that the best of all worlds have been seen for all those businesses as testified by the fall back in the prices of Apple, Microsoft and AMD who also delivered excellent earnings for the 1st quarter of 2021.
Our portfolio of Chinese H-shares was mixed with BAIC Motors rising by 10 % after the company reported its Q1 earnings, with a 43 % increase in profits year on year and a potential listing of additional warrants structured by JP Morgan. The technical configuration of the shares looks promising.
Our Portfolio of Chinese A shares was a negative contributor as China continues to clamp down on big tech companies.
Our European additions did marvels as Deutsche Bank kept rising after its great Q1 results and Valneva rose to 14 after we bought it at 12.25.
Nevertheless, our MODEL PORTFOLIO keeps its lead over the world equity indexes with a +25.67 % performance Year-to-Date and a compound +20.37 % annual average since inception on January 1st 2014
In the last week of April, we took some profits on our Gold mining positions, initiated new shorts in soft commodities and added some especial situations in Europe.
New Asset Allocation
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