Proper portfolio management is just as much an art as it is a science. If reading a book filled with complex mathematical formulae or reading the latest Harvard Review on money management were keys to mastering the dynamics of building a well balanced basket of stocks and commodities, all those able to read at a high school level would be producing triple digit gains, year after year. The all elusive goal of portfolio managers is to gradually and stealthily build a collection of financial instruments that accomplishes two things:
Goal 1: The basket must, in part, deliver gains in all market environments, good and bad;
Goal 2: The basket must be built and balanced in a way that limits downside risk, even in the worst environments.
Most fail to achieve this all-elusive perfect mix, but so far The Velez Opportunity Report has done a stellar job at creating this near perfect basket. From our stock plays to our commodity positions, to our options and ETF hedging strategies, there has rarely been a week during which something in our little mix was not delivering gains, and in some cases, eye-popping gains. In a relatively short period of time, we've managed to build a portfolio that responds well to strong up moves in the market and also delivers gains in down markets, while it limits the downside risk in the entire basket at the same time. This is far from easy to accomplish and demands the time of some of the financial industry's brightest minds. From quantum physicists to high level mathematicians to neural network experts, those who focus on this special area of portfolio management demand and get the highest fees and pay from all the major institutions throughout the world.
"Rolling Gains." That's what a well balanced portfolio produces. It always has something delivering gains, no matter what is going on in the markets and/or the world. While something is taking a rest, something else takes the lead. That which is resting can be built-up, while that which takes the lead can be sold off to lock in gains. Then, we repeat. Ah! What a nice system we have.
The Update
The below update glaringly shows the results of such a nice mix. In the heals of eye-popping gains that came from shorting the market before its crack to the downed last Thursday, three of the below gems in our portfolio took the lead with strong moves to the upside. We seem to always have things in our portfolio battling for the spotlight and part of the below update showcases them. The later four items show plays that are now poised to be built in anticipation of their future push to the head of the pack. Always pulling money out of the leaders, while putting it back into those poised to be the future leaders is what leads to sustainable wealth. You don't know how to do this? Not to worry. I will lead you, as I always have. Let's take a look.
The Last Issue: A Fair well
As mentioned in the last issue, this will be the last public update as The Velez Opportunity Report will be privatized to its paying subscribers. Information regarding subscription and program rates will be forthcoming later this week. It has been a very profitable ride together with many 100% plus winners (PACR, EK, GCA, BAC, DGP, RIMM, AAPL, etc.), major commodity runs (Gold, U.S. Dollar, Crude Oil, Cotton, Live Cattle, etc. and even a few monster winners like MNKD up nearly 1,000%. We are only just beginning and I look forward to continuing the journey with you all. Onward and upward!
