Not too much has happened in the portfolio in June - you can find the corresponding blog post here:
https://www.valueinvestments.ch/vermoegensverwaltung-value-und-momentum-juni-2023
All important points I post of course for you directly here on Getquin:
In June 2023, the portfolio recovered a bit: the return in the Value and Momentum portfolio increased by 0.8%, to 12.4%. In May, it was still at 11.6%. The return is at 49.6% since the start.
Sales and purchases in the portfolio
This month, I sold the Danish shipping company Dampskibsselskabet NORDEN $DNORD (+0%) sold. The price gain of 37.1% was already very good. The high dividend payouts did the rest and made the profit rise to an incredible 70.6 % - within a single year. It is only thanks to such companies that the yield has been maintained in the portfolio. Now one may ask: Why on earth sell such a good company? The quality is still good and the valuation cheap. Unfortunately, the company has lost a lot of momentum: Just two months ago, the price of the shares was 50% higher. Nevertheless, thanks to the favorable entry point and high dividends, the company has helped the portfolio with a nice profit.
This month, only one company has been added to the portfolio. This is mainly because I decided to hold the Italian company SARAS $SRS from the commodities sector for one more year in the portfolio and not to replace it: It still has rock solid fundamentals, high quality and positive momentum. A new addition to the portfolio is Hovanian Enterprises $HOVVB a company from the US real estate sector. Obviously, despite high interest rates, there is an undersupply in the US in the single-family housing sector, which is meeting with high demand. As a result, precisely these companies are showing very good figures and can still be had at a low price, because probably no one expected this in such an interest rate environment.
News and developments on the stock market worldwide
In June, the stock markets were reasonably quiet. Inflation concerns have eased somewhat, but expectations of further interest rate hikes, especially in Europe and the USA, remain. However, some of this seems to be priced into stock prices.
Recent talks between U.S. Secretary of State Blinken and Chinese President Xi Jinping, as well as the latter's foreign minister Qin Gang and top diplomat Wang Yi, have been positive. At least the two parties are talking to each other again, after it looked more like escalation in recent months. I hope the parties will find a peaceful solution to the various conflicts of interest. Because it should hopefully be clear to everyone after the war between Ukraine and Russia that neither party actually benefits from it. There are enough unresolved issues between China and the U.S., from territorial claims to the long-simmering trade conflict.
A better relationship between the two great powers could help ease the tension in the stock market. The removal of trade restrictions often leads to lower costs and could curb high inflation somewhat.