July 2021 performance update
Hi all,
Here with a performance update for July. The key numbers for the month:
Prime: -0.45%
Select: +3.11%
SPDR S&P 500-tracking SPY ETF: +2.25%
Bogleheads Portfolio (80% VTI + 20% BND): +1.42%
A good outcome for Select, with a couple of big winners in the monthly (namely, Advanced Micron Devices and Monolithic Power Systems, up ~13% and ~19%, respectively). Prime was a bit softer, but the flattish-ness masks significant heterogeneity in performance across the included positions, with Paycom’s big ~10% monthly return offset by single-digit negative returns across a number of names that will continue to be in the Prime set in August. The underlying thesis/hope, of course, is that catalysts for a re-rating of these stocks will manifest in trading sessions yet to come.
On the macro front I’m keeping an eye on the proliferation of the Delta variant, federal infrastructure spending plans, and Fed rates. This is all for asset allocation purposes, and would not affect what stocks SPC would select among equities overall. Overall, on a 3- to 5-year horizon, I personally anticipate maintaining a sizeable allocation to U.S. equities.
