Highlights: Reclassifying SPAR as longer term value investment, Cash up, ECRI recession call making me more weary on equities.

BONDS (38%) – This asset class remains a core part of my portfolio as financial crises lead to weak recoveries, which in turn result in persistently low interest rates; the economic environment appears significantly more deflationary due to weak demand and debt reduction by governments and consumers. Additionally, bonds help reduce the overall beta of my portfolio so that, on down days, I’m not too far down. Holdings remain:

• TIPS - Inflation protected US government bonds
• TLH - Long duration (10-2o year) US government bonds
• LQD - Investment grade US corporate bonds
• EMB - Emerging Market government bonds
• MBB - US government backed mortgage backed securities

US EQUITY (26%) –  I’ve now re-classified SPAR from ‘Speculative’ to US Equityas a longer term value investment because SPAR continues to trade close to book value, has a relatively debt free balance sheet and pays a consistent dividend.  Holdings are:

• SPAR - Small US manufacturer of auto parts and services.
  
• INTC - Intel Corp.  market leader in microprocessors, computing and other semiconductor products.
• XLU - Utilities sector fund, investing in S&P 500 companies which produce, generate or transmit electricity or natural gas.
• XLP - Consumer Staples sector fund, investing in S&P 500 companies, which deal in the development and production of consumer staple products such as food and household products.

CASH (24%) – Higher cash allocation indicates my inability to easily find other investment opportunities. ECRI’s US recession call makes me weary on equities in general

REAL ESTATE (7%) – Holding on to Real estate related companies for income while the trend lasts but things do not look good on the chart here. Holdings include:

• REZ - Residential equity REIT (real estate investment trust) companies, dealing in companies that manage residential real estate.

COMMODITIES (5%) – The trend in gold has remained upward and what it does next may indicate whether the global economy will tip back into recession or whether recovery will continue.

• IAU - A gold trust that invests in physical gold bullion so the fund tracks the price of gold, which has been on a multi-year long upward trend. Fundamentals of gold remain sketchy.

Follow Jus’ the Tip – Investing Portfolio here for monthly updates as I continue to adapt, adjust and refine my investing portfolio.

And that’s jus’ the tip.