Rebalancing Updates: December 2020
Last month was a good month for the Wright portfolios. Our tilt towards smallcap stocks and financial stocks worked in our favour.
Here’s a snapshot of the performance.
The balanced portfolio shown below is continuing it’s consistent performance in the 16th month of being live!
We launched a new Momentum portfolio last month, read more about it here: https://www.wrightresearch.in/blog/wright_momentum
Current Market Trends
The bullish performance for the equities is continuing and we are cautiously optimistic. The optimism is built on the following facts:
- Earnings have outperformed estimates in previous quarter
- Cyclical sectors have started picking up
- RBI has taken a pro-growth stance
- Vaccine distribution is about to start
- FII flows have been continuing into India
We are cautious because the stimulus talks in the US are getting delayed and there could be a sell-off they don’t get clear.
Cyclical sectors like Metals, Realty, Auto and Financials have really picked up pace in the last month as seen by the chart below, which is a good sign of recovery.
Our portfolio allocations are broadly the same but we are tilting a little towards the cyclical sectors by increasing allocation to cyclical stocks like TATAMOTORS, SAIL, CUMMINSIND.
Here’s how the sector, industry & factor exposure looks like: