ESG PORTFOLIO UPDATE
Performance last week : 2021-03-08– 2021-03-14
ESGFIREAT40 Portfolio: +25,76 %
Dow Jones: +4,1 %
Nasdaq +3,09 %
OMXSPI:+ 3,12 %
Performance YTD:
ESGFIREAT40 Portfolio: +171 %
Dow Jones: +7,1%
Nasdaq: +3,35%
OMSXPI: +12,47 %
Top performers:
Environmental Waste Internation $YEWTF / $EWS + 26 %
Grande West Transportation $BUS/$BUSXF + 24 %
Cielo Waste Solutions $CMC.CN / $CWSFF + 23 %
Underachievers:
Blue Bird Corp $BLBD -7 %
Absolicon $ABSL -2 %
Portfolio update comment:
The past week was a great comeback for the ESG portfolio and growth stocks. After losing almost 15 % the week before the portfolio soared back 26 %. An exception last week was that the performance was evenly split between several stocks and not just credited to Cielo Waste Solutions. Environmental Waste International had a great performance alongside Grande West Transportation. Personally I think all mentioned stocks remain attractively valued. As you can see in the picture above the portfolio is now at an ATH with both total value and performance higher than before the 10 year yield “crisis” which spooked many investors the past few weeks. For those of you who read my post about the market turbulence you will recall that I did not sell or reallocate my positions since I was pretty sure the yield curve turbulence was a temporary fluke.
The 10 year yield “ghost”
I still believe the yield curv “ghost” might come back to haunt growth stocks when and if the US 10 year yield continues to climb but this should hardly be a cause for concern and unless you’re a trader or have very low risk/volatility tolerance I don’t see any cause for preemptive action. Some believe there wont be peace in the markets until the 10 year yield hits 2 %. This turbulence makes it even more important to “know what you own” . The more you know what you own the higher conviction you can have during market turbulence which is exactly what helped me remain calm during the latest yield turbulence.
Graphic of the US 10 year yield below
Conclusions
Was this market turbulence stressfull for me ? Yes! Did it test my conviction ? Most certainly YES! But knowing what you own and making your own mind about what your portfolio company’s potential and value is will help you remain calm. As a friend of mine who is the author of the book “stock market psychology”usually says “ Activate system 2 ! This means using your reflective thinking”. Most people will only act with primal instincts during crisis which means the brain tells you to “survive at any cost”. This survival instinct often materialises as an action to sell all your stocks in panic so you can “save what can be saved”. As a disclaimer and exception however it must also be said that every situation is unique and there is no general rule that can be applied to all market conditions.
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This is not to be considered financial advise, always do your own research!
