Jim Rogers Portfolio & Thoughts: A Recent Summary

It's been a while since we last covered Jim Rogers in full, so we figured now would be a good time to assemble a collective update. In the past, we've extensively covered Jim Rogers' portfolio so make sure you check that out to get a good background. Today must be Quantum Fund day at Market Folly, as we have covered George Soros' hedge fund portfolio today as well. To get more insight from Rogers then check out his two books: Hot Commodities and then also A Bull in China.

Rogers has opinions on a vast array of topics so we'll just dive right in and try to present the updates as orderly as possible. Firstly, we want to start with the topic of the crisis in general. Obviously, Rogers thinks the United States and the UK are in bad shape and will be for some time. He likens the current situation to that of the 1930s. He says, "In the 1930s, we had a huge stock market bubble which popped. And then politicians started making many mistakes. They became protectionist. They made solvent banks take over insolvent banks and then both banks failed in the end. They are making many of the same mistakes now. What's different this time is that we are printing huge amounts of money which they did not print at that time. So, we are going to have inflation this time." While the current crisis is unique in its own right, it does have shades of the 1930s written all over it. As such, Rogers focuses on inflation a lot and we'll get to that below.

Agriculture

Rogers still likes agriculture and thinks it will be one of the best investments in our lifetime. He says so under the premise that the world is growing and so are the number of mouths to feed. The economic emergence of countries that previously did not enjoy protein heavy diets have also spurred this trend on. Add into the equation the fact that supply is not necessarily growing to match demand, and you could have a real imbalance in the future. As such, Rogers likes agriculture and specifically farmland. In the past, we've covered which farmland investments he has made and have elaborated on his thoughts. His main active investments are in Agcapita Farmland Investment Partnerships (in Canada) and Agrifirma Brazil. His bullishness on agriculture comes down to a simple supply and demand equation imbalance. Food inventories are at multi-decade lows and this is without a ton of major droughts or weather problems. Not to mention, there is a shortage of actual farmers (and not to mention farmland) and Rogers says this can be attributed to the fact that it has been a horrible business for the past 30 years. To see more of his thoughts on this topic, see our post about Rogers' extreme bullishness on agriculture.

Currencies, Commodities, and Bonds (Inflation Theme)

On the topic of currencies, Rogers has varying opinions as each currency is its own equation. Recently, he has been out saying that he owns the Chinese renminbi and he likes to add to his position every chance he gets (as he cites the difficulty to buy and sell the currency due to it being blocked). While he still has some US dollars due to being a citizen, he has sold nearly all of his holdings in the currency and sees serious problems developing. Overall though, he sees a currency crisis looming due to the amount of money governments around the world are printing. He sees the US dollar as a flawed currency and thinks it could be the source of the currency crisis. He explains saying, "I would suspect that somewhere along the line, someone's going to say, 'I'm going to start selling mine (dollars) before everybody else does.' That's when you have a currency crisis."

While he has focused largely on the US dollar, he has often remarked that the British Pound could have major issues as well. We found it intriguing that Rogers has repeatedly focused on the possible currency crisis scenario in his appearances. He has gone as far as to say that sovereign defaults are not out of the question. And, he would not be alone in that regard. Kyle Bass, manager of hedge fund Hayman Capital agrees and predicts sovereign defaults will be the next crisis. Bass is well known for predicting the housing crisis and profiting handsomely (along with John Paulson as well). To back up claims for possible sovereign defaults, Rogers highlights the UK in 1918 as it transformed from world power to a nation wrought with default in 1970. Additionally, he talks about how Iceland has already defaulted too. He thinks we could possibly see more defaults between now and 2011. You can view some of Rogers' past thoughts on currencies here.

Commenting on the government's actions, Rogers says, "It's a mistake what they are doing. It's giving short-term pleasure, but there's long-term pain as we are going to have much higher inflation, much higher interest rates and a worse economy down the road." Clearly, Rogers likens the current scenario to placing a bandaid on a gunshot wound victim and calling everything 'good.' Short-term solutions do not solve long-term issues. He cites this with evidence of the bond market already beginning to taper off and he thinks this will continue as the government sells a ridiculously large amount of bonds. This can be boiled down to one simplistic notion: when governments print a lot of money, you get serious inflation. At least, that's how Rogers sees it.

As such, Rogers does have one recommendation to benefit from this possible impending phenomenon: buy commodities. As fiat money depreciates in value and inflation rises, assets (and namely commodities) appreciate in value. He thinks that commodities could lead the global economy out of this mess and even if that doesn't happen, they will still appreciate due to inflation. In terms of specific commodities, Rogers likes cotton, sugar, as well as silver. For more of Rogers' thoughts on commodities, check out this post.

Gold and Silver

While we could technically lump his gold and silver commentary in the commodity section, we felt it deserved its own section due to his views on the precious metals. Overall, Rogers likes gold and has no plans to sell his. In fact, he could be adding to his position should the right circumstances pop up. He says, "The fact is that the IMF is trying to get permission from everybody to sell gold. I don't know if it will succeed or not. But if and when the IMF sells its gold, gold prices may go to a bottom. Who knows? It may go down to $700. The IMF has a lot of gold to sell. If it does, I hope I'm brave enough and smart enough to buy more." So, he likes gold. However, he likes silver even more right now due to it being cheaper on a historical basis since everyone has been piling into gold and driving up the price. Reverting to the topic of currencies quickly, we know that Rogers also thinks the debate on a new international reserve currency is a legitimate one. He thinks change is coming in this regard and he is not alone in those thoughts. Noted trader Dennis Gartman sees gold becoming the next reserve currency.

Short Positions

Rogers says it is rare for him not to have many short positions and so this definitely classifies as a 'rare' time for him. Derived from his stance on currencies, he hardly has any short positions at the moment due to the amount of paper money governments are throwing at the crisis. He thinks that a currency crisis is imminent and that investors should avoid shorting the market. Rogers says, "I'm afraid they're printing so much money that stocks could go to 20,000 or 30,000. Of course it would be in worthless money, but it could happen and you could lose a lot of money being short." As such, Rogers is not fighting the current trend and will pick his battles. (Do note that Rogers tends to exaggerate things to make a point and we highly doubt he realistically sees the market hitting those numbers). He thinks the extended rally is nothing more than a bear market rally which could be further fueled in the near-term due to a weakening dollar and the Fed utilizing the 'printing presses' and printing more money.

China, India & Sri Lanka

While Rogers is bullish on agriculture and commodities in general, he is also bullish on select sectors in emerging markets too. Specifically, he has focused on water treatment. He notes China and India's water problems and he has bought water companies in China. He did not cite specific names, but we do know that Heckmann (HEK) has had a large presence regarding water in China, even if it is not right along the lines of what Rogers is referring to. He says that the Chinese are aware of their problem and are spending "hundreds of billions" to solve their agricultural problem. So, his bets on water treatment and agriculture are tied together.

When pitting the emerging market nations against one another, Rogers favors China over India. He does so because of the reforms and change that India requires to fully compete. While he likes the commitments coming out of India lately, he needs to see action rather than just pledges for it to become the next real big investment opportunity. Specifically regarding India though, he did say that he likes the prospects of tourism in that nation. While Rogers likes China, he has not added to that position since picking up shares back in October and November of last year. Instead, he is directing money toward commodities.

Turning specifically to Sri Lanka, we find out that Rogers really likes this nation as an investment because it looks as if the 30-year war is coming to a close. He cites numerous other examples of war-torn countries that have emerged successful after troubled times. Rogers highlights that there is significant opportunity at hand, and all it takes is hard work. He likes Sri Lanka as an investment more so than India, Pakistan, or Bangladesh.

Conclusion

As you can see, Rogers is very opinionated on a large set of topics and likes to think in macro themes. After all, this is where his successful background comes into play. He made a fortune running the Quantum Fund with George Soros using similar strategies. While the fund is now defunct, both are still active investors and are good to track for their macro methodology. Make sure you check out our past update on Rogers' portfolio to get a better idea as to what other positions he holds. Also, we examined George Soros' hedge fund portfolio this morning as well, so make sure you see what macro themes he likes these days.

To conclude, Rogers thinks that the stock market will eventually hit new lows this year or next year after the bear market eventually subsides. He thinks that our problems remain largely unsolved and we have a whole lot of work to do in order to emerge from this mess. He thinks that the UK is potentially worse off than the US (because the US has agriculture to fall back on), but that the overall picture is still bleak either way. He thinks that moving to London in 1807 was brilliant, that moving to New York in 1907 was brilliant, and that moving to Asia in 2007 would be the next brilliant move. He clearly sees a shift of power to the east as the emerging markets (and particularly China) start to bloom. He sees Mandarin as the most important language in the world going forward and has already begun teaching his daughters.

Speaking on the global economy's future, Rogers draws from the past by saying, "Throughout history, the center of the world has shifted to where the capital is, where the assets are. You don't see any period in history where things are shifting to the debtors, and America's the largest debtor nation in the history of the world. Unless something's different this time, unless the world's changed very very dramatically, the center of the influence, the center of the power, the center of the earth, the center of the globe, is going to be shifting towards Asia, because that's where all the money is. Have you ever heard of anybody saying, 'Let's go to where all of the debtors are'? It just doesn't happen that way."


If you want to follow Rogers, then bet on inflation, agriculture, commodities, China, and bet against the US and the UK. For more on what he deems to be the best investment opportunities out there, check out Rogers' two books: Hot Commodities and then A Bull in China. We'll leave everyone with one last bit of advice from Rogers: become a farmer.

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Sources: Numerous media appearances, interviews, and conferences.

Doug Kass Model Portfolio Update

Doug Kass over at TheStreet.com just updated his model portfolio and we wanted to post up some of his notable changes. Firstly, here's his breakdown as compared to the S&P500. His recommended weightings vary from the S&P and he provides rationale for his adjustments.

(click to enlarge)

The most noticeable differences are in the Technology and Health Care sectors. Kass thinks business spending will stay low and that government intervention threatens pricing, respectively. Kass' also keeps 29% in cash which is a smart move, as you can deploy it should opportunities arise and use it as a buffer should trouble continue. His 15% exposure to credit is interesting as well, as he deems it 'opportunistic.'

He also included a list of stocks to be used in the portfolio and we just wanted to highlight his major moves. In the financial sector, he is dropping Visa (V) from his list, and that's probably a wise move. As we've noted in our hedge fund portfolio tracking series, a TON of hedge funds own V. And, when you start to see everyone and their dog holding a stock, it's usually time to get out (or at least take profits).

Kass likes some regional banks such as SunTrust (STI), PNC (PNC), Regions Financial (RF), among other plays. In technology, he thinks the typical titans are now overvalued and instead likes Microsoft (MSFT), Dell (DELL), and Qualcomm (QCOM). Numerous hedge funds agree with him in this regard, as we've seen many funds holding large MSFT and QCOM stakes. As a matter of fact, many hedge funds also owned the titans like RIMM and AAPL too, which Kass says to avoid. But, of course, the hedge funds could have possibly already sold out by now. Lastly, in terms of credit plays, Kass likes bank debt, high yield debt, and select bank loans.

It's been a little while since we last covered Kass, as we've been inundated with the hedge fund filings. But, since Kass is a hedge fund manager himself (and noted short seller), we still like to keep track of him. In the past, we've covered his signs needed for a market recovery. Make sure to check out his model portfolio update over at TheStreet in its entirety here.

Nouriel Roubini's Portfolio

In a shocking development, Nouriel Roubini, a.k.a. the harbinger of doom himself has been thrust in the spotlight yet again. And by shocking, we mean not shocking at all. Anyways, the FT recently gave us a glimpse into what Roubini himself invests in,

"Just ask Nouriel Roubini of New York University, who has a reputation as the most pessimistic economist in academe. He deserves it. His most recent paper, published last week, is entitled: “Can the Fed and Policy Makers Avoid a Systemic Financial Meltdown? Most Likely Not.”

Nobody is more aware of the gravity of the financial situation, and nobody has done more to point out the risks of a systemic crisis.

So how are Roubini’s own funds invested? They are 100 per cent in equities. In the long run stocks do best and he is not yet close to retirement, so he keeps putting more money into index funds each month.

Fully aware of the gravity of the financial situation, he is also aware of the futility of trying to take action or to time the market. Those tempted to make the investing equivalent of a goalkeeper’s depairing dive should take note."

Felix Salmon of Portfolio went one step further and then notes that while Roubini's 401k is in equities, he has his interests in his firm as well as a lot of cash on the sidelines. So, while Roubini has cash on hand, you'd have to think that he would be inclined to put more of it to work at some point. But, maybe the fact that he is so incredibly pessimistic will blind him from his own contrarian indicators... who knows. I have yet to decide whether or not Roubini turning bullish (if that ever happens) is a good or bad thing. I'm actually scared for that day. The point is, though, that Roubini is human. He has a 401k just like practically everyone else out there. And, he is invested in the markets for the long-term. So, if you were to extract a positive from all of this, there you have it. And, if I were you, I would savor it. Because after all, don't forget that Roubini's picture is listed under 'doom' in the dictionary.

We recently noted that Roubini's estimate for the S&P 500 is 600 on the dot. At that level, he suggests that the S&P companies will earn $50 a share and trade at 12x. He also did not rule out the possibility of seeing 500. Considering we are getting relatively close to his targets, you have to wonder if he is starting to get slightly more constructive deep down. You would assume that he would possibly be investing his own money if/when we reach those levels. But, that is pure speculation on our part. We're mainly making this point to show that while he is not apt to time the market, he has identified a level of valuation he deems acceptable.

Just remember that now you, too, can be Nouriel Roubini by printing off this Roubini Halloween mask and proceeding to talk about doom and destruction nonstop.

Simple Mohamed El-Erian Portfolio

Great post by Roger Nusbaum highlighting how simple it is to create an 'El-Erian' styled portfolio using simply exchange traded funds (ETFs). If you're unfamiliar with Mohamed El-Erian, he is the CEO of the largest bond manager in the world, PIMCO. And, he's a pretty smart guy. You should definitely check out his book When Markets Collide by Mohamed El-Erian. It discusses the current fundamental changes going on in the global economy and financial markets/systems. This book also recently won the Business Book of the Year for 2008. In the book, he touches on a new type of portfolio and this is what Roger has sought to re-create in simple form.

The breakdown of the portfolio is as such:

• 15% Domestic Equities: 10% PBP (S&P BuyWrite), 5% IJR (S&P Small Cap)
  
• 15% Foreign Developed Equities: 10% DOL (Intl Large Cap), 5% GWX (S&P Intl Small Cap)
• 12% Emerging Markets Equities: 12% ADRE (Emerging Market index fund)
• Private Equity: Traditionally, this would garner a % by El-Erian, but it is very hard for a retail investor to replicate such an investment.
  
• 9% Domestic Bonds: 6% SHY (1-3 yr treasury), 3% AGZ (agency fund)
  
• 15% Foreign Bonds: 15% IGOV (S&P Intl treasury)
  
• 5% Real Estate: Also hard to replicate, but you can use REITs if you wish. DRW (Real estate ETF)
  
• 11% Commodities: 6% GLD (Gold trust), 5% DBA (Agriculture)
  
• 5% TIPS: TIP (TIPS fund)
  
• 5% Infrastructure: IGF (Global infrastructure fund)
  
• 8% Special Opportunities: Roger suggests a myriad of options for this category. GXG (Colombia ETF), VXX (VIX futures), PHO (Water).
  

Great overall write-up from him with easy implementation of ETFs into El-Erian's new model portfolio. In terms of expanding upon his suggestions, here's our take: On the commodities front, we would try to add some SLV (Silver) or other types of commodities into the mix. In special opportunities, there are literally a myriad of ETFs that could fall into this category. We might suggest something exotic like a Carbon Trading fund (ASO or GSN) or possibly some currency exposure through FXA, FXC, FXF, etc. Other than that, all the other ETFs are pretty self explanatory as to what they track. Check out Roger's article.

A Simple Conservative Fixed-Income Portfolio

Wanted to take a second and highlight a simple fixed income portfolio. For those who are too busy to actively manage their portfolio in this crazy market, there's a simpler, "set it and forget it" type of portfolio for generating income. Such a portfolio was just highlighted as a conservative option recently in Kiplingers. They write,

"William Larkin, fixed-income portfolio manager at Cabot Money Management, in Salem, Mass., says his portfolio was originally designed for conservative clients who wanted conservative investments.

These days, though, he finds that many clients who hadn't considered themselves conservative in the past are now interested in fixed-income investing only. This portfolio represents all parts of the fixed-income market at the lowest possible cost, he says, and recently yielded 6.3%. It also has a healthy slug of inflation protection, which is particularly reassuring given all the money that's being printed for various government stimulus and rescue plans around the world.

Larkin's portfolio:

25% iShares Barclays Aggregate Bond ETF (AGG) (Tracks a broad index of high-quality U.S. bonds)
25% iShares iboxx $ Investment Grade Corporate (LQD) (Tracks an index of the most liquid, long-term corporate bonds)
10% Fidelity Floating Rate High Income (FFRHX) (Invests in floating rate bank loans that automatically adjusts to rising short-term interest rates. It offers additional inflation hedge)
10% iShares MBS Fixed Income (MBB) (Tracks a broad index mortgage-backed securities)
7.5% SPDR DB International Govt Inflation-Protected Bond (WIP) (Invests in an index of non-U.S., inflation-linked bonds)
7.5% PowerShares Emerging Markets Sovereign Debt (PCY) (Tracks an index of emerging markets government debt)
7.5% iShares Barclays TIPS Bond (TIP) (Tracks an index of inflation-protected, U.S. Treasury securities)
7.5% iShares Iboxx $ High Yield Corporate Bond (HYG) (Tracks an index of high yield bonds)"

We actually wouldn't change much up with this portfolio. We'd obviously alter the percentage weightings based on age, retirement date goal, and risk tolerance. But, overall, this is a pretty solidly constructed portfolio for a conservative yield-seeking investor. And, you could substitute some other vehicles in there for other exposure as well. We definitely advocate a position in TIP for those desiring protection from the (in our mind) impending inflation. Also, LQD offers a decent yield from corporate bonds of many blue chip companies that aren't as risky. Blend in the corporate bond exposure from LQD with some exposure to HYG for exposure to riskier, higher yielding corporate bonds as well. Those are definitely our three favorite instruments in this portfolio. Emerging Market debt is also a very interesting play that theoretically could be enticing here, but we haven't done enough work in that area yet to really comment further on it.

You can view the entire post: Three Simple Portfolios.

Full Disclosure: market folly was long LQD at the time of publication

Some Portfolio Updates

*Before I get to the portfolio updates, just wanted to let everyone know that the hedge fund 13f tracking series is by no means finished. I was just on vacation for the long weekend and haven't had time to finish up the research. Sorting through those 13F's and comparing them line by line is quite tedious haha. Look for posts covering Maverick Capital (Lee Ainslie), Greenlight Capital (David Einhorn), Atticus Capital (Timothy Barakett), and more in the coming days. Just need to get this portfolio update out of the way first.*



Long overdue for a Portfolio update. First, let's start with Mosaic (MOS). I've been a big fan of the fertilizers due to their global pricing power (ideal short supply and huge demand conditions). I've been scaling in and out of them ever since August 2007, taking profits and buying the dips along the way, revolving around a core position. I usually play the space through both Potash (POT) and Mosaic (MOS) because POT is best of breed, and MOS is the up and comer with better valuation. I usually enter investments in fourths so I buy 25% of my overall position in one round, then another 25% and so on. Currently, I've got 1/2 a position in POT right now but I only had 1/4th a position in MOS, that is until yesterday when my limit order at $115 hit and now i've got 1/2 a position in MOS. Now, this was a limit order set from a while ago that I lined up to coincide with the 50 day simple moving average. But, let me go over why entering MOS here would be a good idea, even with its dip below the 50 day ma. First, looking at the chart we see that of course it has touched the 50 day ma and this has been an excellent buying opportunity in the ferts whenever they pullback this far. If you look at the chart you'll see that each touch to the 50day ma has been a buying opportunity. And, notably, each touch has actually broken below the 50 day, only to sharply rebound right back above it and begin its trend higher. So, this is why the fact that it broke the 50 does not bother me: MOS seems to always do that and the buyers always come in. Secondly, look at the Full Stochastics at the very bottom of the chart. You will see that we are now in oversold territory and the stochastics have turned back up, indicating a bullish future. Look at all the other times that the stochastics have entered oversold territory (reading 20 or below). Every single time the stochastics point to oversold, MOS has rebounded for a trade at the very least, if not continuing its run higher. Lastly, looking at the RSI at the top of the chart shows us that everytime MOS sees an RSI reading of 50 or below, buyers have come in. And, yet again, buyers dipped into MOS. So, the chart really tells the story in MOS. Watch the moving averages for support, watch the full stochastics for oversold conditions (20 or below) and watch the rsi for a buying signal (50 or below). As long as MOS hits some of these conditions without massive volume, step in and pick up part of your position. If it shows heavy volume on the decline though, stay away as it probably indicates distribution and further downside.



Next up, just wanted to mention that I added Walmart (WMT) on the pullback to the 50 day moving average as well. I've been VERY patient on this one, waiting for a pullback for a nice entry. Obviously waiting for a pullback to the 50 day moving average is always a smart idea, as this level typically serves as a support level for uptrending stocks. You'll notice on the chart that smaller pullbacks have occurred along the way the past few months, but we finally got a pullback of real size and so I pulled the trigger. Notice also how the stochastics on the very bottom of the chart point to oversold. Look to other times that the stochastics crossed down around the 20 level and you will see they pointed to excellent buying opportunities in this name. This is the primary oversold indicator I use and it has served me well. Not to mention, WMT has been so strong lately that it has rarely dipped below 50 on the RSI. And, every time it has, its been a buying opportunity. We just got one, so that was yet another buy signal screaming at me. So, both the RSI and stochastics were at the lower end of their ranges and started to turn up, signaling bullish future. Combine that with the touch of the 50 day moving average and I'm more than happy to add some WMT.

Its obvious that in a recession/tough times/era of high gas prices, that consumers will hit the discount retailers more frequently. And, WMT is a one stop shop for all their needs (including gas at some Sam's club locations). So, the thesis for this play is really simple. People are living cheaper due to tough times and the only places for them to go are COST or WMT and WMT to me simply has greater exposure and offers you both the pure discount shop in its Walmart stores, as well as the bulk item membership version Sam's Club. So, I chose WMT over COST mainly for this reason, and also because just chart-wise its much healthier looking than COST. And, believe it or not, the final decision maker was just stepping into Walmarts over the past few months. They are ALWAYS packed, no joke. I even stepped inside there on a Friday night at 11:00pm to pick up some mixers before heading out and the place was absolutely packed. My jaw practically dropped. I knew it was a busy place, but even at 11pm on a friday night?! That sealed the deal for me. Target (TGT) wasn't even an option for me simply because I've been in a few Targets over the past few months as well and they are ghost towns compared to WMT. Not to mention, they aren't "cheap" in a sense like WMT and COST. TGT is a discount retailer sure, but I want the cheapest of the cheap in this kind of environment. I don't care how clean Target's stores may be, I'm focused on the pricing offered and the foot traffic. WMT ftw (for the win).




Lastly, I wanted to touch on DRYS. I "twittered" (see widget on upper right of the blog) that I sold the last of my DRYS off last week, as it had a monster run and started to see sellers coming in. However, yesterday I got right back in despite seeing heavy volume distribution in the name. Firstly, you'll notice on the chart that DRYS has had a monster run yes, but it has also had a monster pullback in the span of 1 week. Shares sat around $86 and were calling my name. Look at early February and see the recent peak of around $85 and then look at where DRYS is right now, sitting smack dab right on past resistance/now future support. So, knowing that DRYS had hit support on its pullback, I started a teaser position up in the name again because it had simply seen too much selling. The stochastics once again helped me in this decision as they had gone from overbought (around 80) to oversold (around 20) in the matter of a week's time. So, the stochastics signaled a buy, DRYS was sitting on support, and it had seen a massive sell off in only a week. I figured at the very least it was worth a trade, and I was right. DRYS popped 9% today (Wednesday 28th). But, don't get me wrong, I like DRYS as an investment here due to a few reasons. 1. They just reported great earnings a few weeks ago and the Baltic Dry Index wasn't even at all time highs. 2. Since that earnings report, the Baltic Dry Index has been screaming higher, meaning DRYS can charge higher rates on the spot market 3. DRYS operates a ton (practically all) of their rates on the spot market, so they will have an absolutely monster quarter to report next go-round. But, I must urge you to proceed with caution with this name. As you can see from the chart, its very volatile (just like the Baltic Dry Index) and you've got to keep a close eye on things to make sure you don't get shredded to bits. Keep an eye on the BDI to make sure DRYS is still cranking out high rates. Also, monitor the ships' availability, as there has been a shortage of ships lately. The heavy volume on the pullback showed signs of distribution I'm aware of that, but the sector has strong underlying fundamentals right now and saw a massive sell-off due to profit taking from the massive run-up in the first place. The strong volume today as DRYS ran right back up is positive as buyers returned with force. Look to trade this name at the very least, if not invest in it for the next quarter or so, as DRYS will really benefit from high spot rates.

Lastly, I just wanted to give a run-down of my overall portfolio. This blog details the occurrences within my main investment account, as well as my short term trading account. My investment account has anywhere from 15-20 stocks/etf's in it with a slightly longer investment time frame (anywhere from 3 months to years) and I scale in and out of positions, taking profits when I deem fit, and scaling back in on dips. My other account is for shorter term trades (1 day, 1 week, 1 month) and typically only holds 1-5 names at any given time. I set up this blog with the goal of providing complete portfolio transparency through Portfolio updates like these, and live trade updates with my Twitter widget in the upper right hand corner of this blog. That way I can outline my investment theses and get feedback from others. So, by all means feel free to bash my portfolio, make helpful suggestions, or just straight up question my decisions. Any and all comments are welcome, as I love outside input to make myself sure that I am in the right names for the right reasons.

Long Positions as of Weds May 28th in no particular order: AAPL (slowly taking profits as we near $200), QCOM, MA (been selling, waiting for a meaningful pullback to re-add), V, GS (just added), USB (writing covered calls on it & picking up the 5% dividend), RSX (Russia), ILF(Brazil/Mexico: AMX, FMX, BBD, ITU), TTEK (Water/Wind, courtesy of @jmclarty who initially brought this one to my attention), ETR, NLR (been taking profits), BIIB, GILD, ACI (wishing for a big pullback to really load up), POT, MOS (just added more on pullback), UNG, CHK, WMT (just added on the pullback), TMO, SDS (hedge: ultrashort s&p)

Short Positions: COF (covering the last of it though)

Watchlist: I've owned some of these names before, but waiting for pullbacks to get back into MEE, FLR, FWLT. Want to start a new position in MIL as well... waiting.

I've probably left out a few names but that should sum it up.