BlackRock Resources & Commodities Fund Increased

By on February 27, 2020

Casualty of WarYesterday the remaining cash in the SMA Portfolio was used to increase the allocation in the closed-end fund BlackRock Resources & Commodities Strategy Trust (BCX). BCX was purchased at $7.15 and its allocation was increased from 6.8% to 7.2%.

The mini-panic created by the coronavirus has created some interesting opportunities in the stock market. My move from fixed income into resources was poorly timed given the continued freefall in this sector. Energy stocks have been particularly weak and appear to be good values at current levels. Rarely do you find sentiment so weak in an economically necessary area. There is probably some margin call related selling causing the downdrafts seen this afternoon. The market is likely close to the bottom here in my opinion.

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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