Day 28 of the Spanish “complete lockdown” quarantine. No one is allowed to go outdoors if not heading for the (closest) food market or pharmacy. The police and the military is patrolling the streets to maintain the curfew. For some reasons are dog owners allowed out for a walk around the block. Considering glueing fur on one of our small family members, this is getting to me.
But time flies! Or not really. The first week moved along really smooth, the children doing their school chores and we as parents were on top of things. The second week was definitely slower, but still manageble. Week three was just survival and light depression. Just keeping your daily schedule became a challenge. Things falled apart. This weekend the government announced that they will prolong the quarantine with another two weeks above the already decided four weeks.
Our paradise has now effectively become our prison. Six weeks, with children, locked in without even being able to talk a short walk outside of these damn walls. Don’t get me wrong, we still love the island and don’t plan on emigrating back just right yet- but this quarantine hurts! It doesn´t help that Sweden is managing this pandemic differently than everybody else. I would bet my money that Sweden choose the “better” way but as usual time will tell what was the right thing to do.
Maintaining daily routines
We actually been quite busy, even through a lockdown. The childrens schooling take quite a lot of time as most of the day is administered by us. Some online teaching is happening but not more than an hour or two a day. This has been challenging but also quite fun, as a parent you both get the joy of helping your children as well as having an easier time getting close to them. You learn even more about what’s going on in that tiny brain, what they are afraid of and what they like.
I´ve also taken the “opportunity” to work more hours which has been important keeping my sanity. I’ve probably never been as happy having a work gig as I am now. Compared to most other people I am already used to do most of my work remote and on the computer so that hasn’t really changed much.
Having normal routines has been critical to keep life together. Brushing teeths, showering, getting dressed and sticking to fixed hours have been even more important than usual. Not only for the children… After three weeks with little exercise we now try to do one workout a day. I need to be in shape when that Padel court is opening up again!
I guess we are all been reading a lot more news than usual. It’s been hectic trying to keep up with all the Corona evolvements around the world. Spains curve is getting better each day. The local Mallorca infection curve is really really low and that makes people here very happy. Personally I get worried! For me this might mean that we have postponed our peak and burned a lot of money and public trust on this. I hope that I am wrong.
There is also discussions on wether or not to allow tourists in Spain this summer – at all. Yikes, there might be a lot of space on all the beaches this year!
It’s not only regular news that have taken up my time, the financial market has been extremely interesting. All of us who have been playing around with the stock market for a long time knows that it is during the stock crashes you either make a lot of money or loose a lot. This is the time that you need to keep your cool, no matter what happens.
As mentioned in one of my last post I left my old Golden Butterfly portfolio for a more aggressive strategy. This was not a decision taken during the heat of battle but an already decided one since a long time ago. When the stock market would hit -30% from its top I would leave the current strategy, turn more offensive and rebalance the portfolio. I sold some of the treasury bonds and used cash to increase the portfolio to 55% stocks, which at the time meant that i shifted approx 20% of the total portfolio (thats a lot of money) value to index funds. The buys went through on the 19:th and 20:th of Mars.
Back in black
The main portfolio value is now actually showing black numbers again with a +1,6% increase YTD. The plan is to continue the reconstruction until I reach a 80/20 portfolio consisting of stocks and gold. I was a little bit lucky with the timing of the first reconstruction (see arrow below), as it looks now, but we might not be on the safe side just yet. I honestly think we are heading straight down there soon again, probably even lower. But what I think really doesn’t matter, I don’t even follow my own advices. I know my strategy wins a lot more often then my ego. It’s a tough realisation to do after spending 20+ years on the stock market but I handle that by letting my ego play around in the “toy portfolio” and hope that he’s happy enough in there. He has been buying and selling a lot in there lately. Gold, Silver mines, gaming companies, health care and so on. How did it go you wonder?
Not a disaster but not even close the strategic portfolio. It could have been worse. A lot worse! One of this years top goals for me is therefore to make sure that my ego stays away from the main portfolio and keep him satisfied in that 5% total value sand box.
My point here is, obviously, that I recommend that you stick with your strategy whatever that was before the dive. You, me and the rest of the people are not logical creatures when we are afraid and panicking. It’s those nasty ill thought trough decisions that makes us bad investors. If you believed in your strategy before you should probably believe it now as well.
Stay safe and keep healthy out there!!