Model Portfolio Update

 

The Model Portfolio is -6.2% since its inception. SNOW, MA, and CB provided small gains, but the drops in GOOGL (-8.3%) and especially CRWD (-17.4%) weighed the portfolio down. 

I posted about my concerns with CRWD. CRWD delivered sequential declines in ARR, and that has the market spooked. 


CRWD seems to be holding at support, but it could drop quite a bit if support doesn't hold. If the chart shows a strong indicator for a break of support, I might consider selling a couple shares to hedge.

Growth stocks like CRWD tend to move in extremes compared to blue chips -- they're more up on up days and more down on down days. Holding growth stocks requires a lot of volatility tolerance. 

For those who do not want to see as much volatility in their stocks, investing in indexes, bonds, and blue chips may be a better fit. My understanding of bonds is somewhat limited, which is why I only mention them in passing on this site.

My plan, for now, is to hold cash and see how things play out. I haven't decided how big I want the model portfolio to be, but tentatively I'm thinking around $20,000. That means that the model portfolio is holding around $15,500 in cash right now. Keep in mind that I do not hold these exact positions in my personal portfolio, but I own shares of every company in the model portfolio.

That's all for now, everyone enjoy the rest of your weekend!

This website is created and authored by Marlin Sandlin and is published and provided for informational and entertainment purposes only and merely cites my own personal opinions.  I am not a financial advisor, and this website is not intended to constitute investment advice or provide specific advice or recommendations for any individual or on any specific security or investment product.  Any action you take upon the information you find on this website is strictly at your own risk.  This website may share links to articles and information which is interesting to me, but it is in no way an endorsement by me or by anyone associated with me.  The views reflected in the commentary are subject to change at any time without notice.   I may or may not hold investments in the companies or securities discussed on this website.

Marlin Sandlin owns shares of Crowdstrike (CRWD), Mastercard Incorporated (MA), Chubb Limited (CB), Alphabet Inc. (GOOGL), and Snowflake (SNOW).

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