Let’s play a game.
Imagine you could only have four positions in a portfolio between now and year-end, of equal size (25% each). Obviously this is nuts, call it a gun-to-your-head thing. No one would advocate doing this in real life but it’s a helpful exercise in determining your true highest-conviction investments at any given time.
Just for fun and completely hypothetically, mine would be:
25% Long Japanese stocks / short Japanese yen
25% US Financial Sector Stocks
25% Investment Grade US Corporate Bonds
25% European Stocks
These are asset classes / sectors where I see value and where I can picture the fund flows going to drive their prices higher into the end of the year. Just my guess, of course.
What would your four slots be?