Portfolio update: hedging

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Another week with relatively sideways and low volume price action - understandable due to Thanksgiving on Thursday, however markets stubbornly kept creeping up.

This was good for our portfolio, however at this point the question is how long can it last?

After the first week of November, immediately after QRA and the FOMC, we said the following:

Lower supply of long-term bonds will result in lower yields and a lower term premium, and this will boost bonds [and equities] in the short term (over the next three months).

…we need to follow our own advice, which is to buy assets. Both bonds and stocks.

Since then, SPX and NASDAQ went up 10% and 12% respectively, while TLT (the long term bond ETF) went up 7%. It was a good trade, especially since the reaction was almost immediate.