Erik Wetterling – Portfolio Rebalancing And Price To Value Reshuffling In Resource Stocks
Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins us to unpack how he approaches portfolio rebalancing and “value shuffling” when investing in junior gold, silver, and base metals mining stocks. He makes the point that price has no meaning unless framed against the value a company is creating, and so if price moves down on no change in value, or value is created with no change in price, that opportunities for changing the weighting or allocation to a particular stock present themselves quite regularly in these volatile markets. Erik discusses knowing your investment goals and style, to construct the appropriate diversification to alpha or beta plays in one’s portfolio, as well as companies that have received 3rd party validation from larger companies or institutions.
Erik discusses a handful of stocks in this interview to illustrate improving price to value ratios he has been noticing after certain market reactions in Lion One Metals (LIO.V) (LOMLF), Nighthawk Gold (NHK.TO) (MIMZF), Ascot Resources (AOT.TO) (AOTVF), Trigon Metals (TM.V) (PNTZF), and Magna Mining (NICU) *
*In full disclosure, the companies mentioned by Erik in this interview, are positions held in his personal portfolio, and are also site sponsors of The Hedgeless Horseman website.
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Good comments Lakedweller2. Yes, I also like to reshuffle the deck and regularly do some portfolio management and did a half dozen trades today to do a bit of rebalancing.
“Shuffle Off To Buffalo” (Might be a year or two before your time.)
I do the same thing. Constantly readjusting. Trying to take profits and move to profits. That way, I don’t have to wait except for funds to settle to reverse the process if appropriate.
However, I took Emo profits earlier and left with losses on newer purchases. So finishing 3rd sale and 31 day wait to buy some back. Took profits 2 or 3 times in Fathom Nickel and Magna profits while I could and moved back in to almost a full position in both with losses pending I hope to wipe out with upward moves at any moment, hopefully not “next year”.
(Also, almost got rid of every silver stock as don’t trust JPM, but began adding them back over the last couple of months as price dropped to “very attractive”.) (Best performer lately has been Nevada King but not enough to take profits…so I added). (I keep thinking of other approaches : I have not sold any of Eloro or I-80 as their price is higher and I may be tempted to not buy them back. I sold Snowline and find myself avoiding repurchase.)