Gerdau S. A. Removed from the SMA Portfolio

By on December 2, 2019

Gerdau SALong-time holding Brazilian steelmaker Gerdau S. A. (GGB) was sold this morning at $4.04. GGB was purchased at $3.91 on December 4, 2014 and has had a wild ride since then. In February 2016 GGB traded as low as $0.88 and subsequently rebounded to $5.00 in February 2018.

I’m grateful to exit this position with a slight profit. GGB is not an ideal holding for an IRA since foreign taxes are withheld and there is no way to recapture these funds.

I’m raising cash to explore more opportunities in the beaten down energy sector; specifically midstream energy companies which have entererd a bear market. Companies beaten stock by tax loss selling will be looked at as well.

Disclaimer: It is very challenging to outperform a buy and hold strategy. Historically, investors have found themselves well-served over the long-term by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Information presented is based on analysis of past data and assessments by the Tactical Timing System model. Future performance may not reflect past performance. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

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