Hello Investors,
It is hard to know which companies won’t make it through this crisis. We have decided to reduce the risk in our portfolios slightly. While we believe that much of our capital are in very top quality businesses. There are still some that have bankruptcy risk. So, we have sold 100 shares of GM stock that we own (we are leaving our put in place). We are using the proceeds of $1600 to buy the XLY consumer discretionary ETF. In this way, we won’t need to find out if GM can make it through. We know that some of the companies will survive and thrive over time. So, we are taking 1/2 of our risk in GM and making it less risky. We will discuss this further on Friday.
We sold 100 shares of GM and used the $1,600 and bought 20 shares of XLY ETF in its place.
Happy Investing!