1. There hasn't been any chance for me to reallocate to stock in my 401k. The last recent min-sell off did provide some opportunity. Allocated 20% to S&P 500 index in my 401k. Leaving 80% cash.
2. Portfolio is muddling through. All the out performance this year was short lived as Suncor sold off due to the election in Alberta, Canada. The new premier wanted to tax oil companies more. The good news is WTI is pricing fairly at $60 a barrel. The Canadian Sand Oil is usually priced at 30% discount to WTI. That mean they are selling at roughly $42 at the current environment. The cash operating cost per barrel is $33. So Suncor will still produce enough cash flow to cover CAPEX or dividends.
3. Government bonds sold off worldwide for no particular reason or trigger aside from the fact German Bund traded with negative yield for a few days. Not sure where the money will be allocated to if they are shifting money out of govies and stocks. Corporate bonds perhaps? The spreads are already tight enough.
4. Sold LULU this quarter and added small amount of FNMA and FMCC. These two mortgage giants trade like an option. It has a relative high risk-reward ratio. It can pay 5 to 1 if the government decides to re-capitalize them with private capital. That's a big IF.
5. Oil bounced back was unexpected as inventory continue to build. This is mainly due to the weakness in US Dollar rather then change in the fundamental. Oil is priced in dollar.
6. India/Africa remain an interesting investing opportunity as their GDP can grow tremendously with some proper structural reform. The last place on earth that can provide cheap labor and stable political environment (tbd).
In an other news, my job search which started couple weeks ago has not gone too well. It looks like the market died down quite a bit after the initial beginning of the year shuffle. I only managed to score 1 interview so far. Not sure where to go from where. I suppose it's time to get creative as the usual channels are running dry.
