Thread by @Biotech2k1

Building my Strategy Portfolio:

I funded it today and it will be just like I am starting out from scratch. I got $350 in it and plan to contribute about $200 to $250 each month. I went through much of my portfolio design which I will share so it might be educational.

1/ This portfolio will not be a buy and hold portfolio. It will shift and rotate based on where I think the Macro economy sits and where the best deals are in the market. That is the first thing I want to establish.

2/ I set a few rules so I buy 1 share at a time since there are zero fees. I plan to not pay up for stocks, but not sure if that will work once the bear market ends so its a guide not rule at the moment.

3/ I plan to contribute each month and keep adding to position so it becomes a real time interactive lesson for any new investors who want to learn.

4/ The first task was to pick my asset allocation between stocks, bonds, real estate and commodities. I looked at bonds and the market for them is all bad right now. Higher rates and inflation spell bad days for bonds. I picked 0% allocation for now.

5/ Real Estate is probably in the biggest bubble since 2008 with skyrocketing house prices. It will pop again eventually. I will allocate 0% until it does.

6/ Thanks to oil and inflation, commodities are already up over 50% this year and in a massive bubble. I won't touch them up here so 0% allocation to commodities.

7/ When it comes to stocks, I am going to go 100% allocation there for now until something changes. I see that the value stock are in a massive bubble with many trading at 25 to 30 P/E with declining sales due to demand destruction.

8/ The only place that is cheap is growth. I plan to go 70% growth and 30% income. I plan to pick 7 growth companies and 3 income companies for a total of 10 so its diversified from single company risk.

9/ To make things simple I will take 7 biotech stocks that I really like as my growth stocks for now. I picked them from my top 3 science themes. I will add to them 3 income stocks.

10/ I picked 10 stocks in this list, but always subject to change. I only bought 1 of them so far as the market is acting bubbly right now.

11/
Growth
#AI/#ML in biotech
1 $RLAY
2 $EXAI
3. $ABCL
#CRISPR
4. $BEAM
5. $VERV
#Snybio
6. $DNA
7. $TWST
Income
8. $MAIN
9. $SCCO
10. $VZ ???

12/ The only stock I bought any of was $VERV the other day. I am not going to chase a dead cat bounce in this bubbly market. There will be a much bigger crash later for the overall market when inflation crashes earnings with demand destruction sets in.

13/ That is where I stand. Right now, I am in the stock picking process for my companies. Its subject to change as I will go where I think the best opportunity lies.