Given that the IVA Portfolios have been trailing the headline indexes for some time, some IVA readers may be thinking, “A trade alert—it’s about time!”
But I’m not trading to try and play catch-up. Our diversified Portfolios have stood the test of time from both a performance and a risk perspective. We’ve lived through the dot-com bubble bursting, the financial markets seizing up during the 2008 crisis and the COVID shutdown. We are struggling during the Magnificent Seven and artificial intelligence hoopla, but that’s only relative to the index funds—we’re still making money.
As longtime readers know, I don’t trade the Portfolios often; this is by design. Timing the market is a fool’s errand—sticking to your long-term plan is usually the best course of action. As you know, “time in the market, not market timing” is written in my DNA. On top of that, if you want to successfully partner with active managers, you must be patient and give them time.
With today’s trades, I haven’t given up on any of my favorite active managers. Instead, I’m looking to manage the risk in the Portfolios while taking advantage of some opportunities.
In particular, I’m looking to accomplish four things with today’s trades: