What A 2020
Updated: Apr 9, 2021
A lot of tragedy, change and turmoil was the last year. It was an unbelievable year that was 2020. A paradigm shifting year if history is kind to it. A year of infamy if it is not. The Coronavirus, financial turmoil and general unrest plagued (no pun intended) everyone. This post will be short and sweet because I would like to take time to explore what lies ahead more then what occurred in the past.
Blocking out the Noise
The news cycle got crazier, the internet got wackier and basic facts never seemed more complex. This was the most challenging part of 2020 from a information and investment prospective. Knowing what to pay attention to and what to ignore. What was real and what was "fake news". With discipline and patience we managed to sort through a great deal.
The Financial Scoreboard
In all honesty, this is what matters if you are managing money. Ideas and words are great, but what were the results. Let's go through some of winning and losing calls.
Followed the 'Wuhan flu' since mid January 2020. By mid February knew it was underreported, would spread readily to the rest of the world. Even without significant spread the world supply chains running out of China would be affected and disrupt global trade/financial markets. Warned nothing was priced in and took out puts on the S&P 500 end of February. -WIN
Closed puts in very healthy profit. Bought oversold value companies March 13th-20th. reopened puts in anticipation market may slide more based on historical patters and technical analysis. Closed puts at loss as market moved up. -Mix
Bought gold miners, silver miners Bitcoin and Ethereum during March crash. Of full cash allocation split. 70% went to these assets. From both a historical and practical perspective these assets were highly likely to return well no matter the economic situation presented at that moment. Either fiscal and monetary response would be so tremendous it would lead to a shift in heavy asset inflation follow by likely regular inflation due to the knock on effects it would have on the broader economy, or the financial system would continue to see significant difficulties culminating in a flight to bearer or or safe haven assets. -Big Win
Bought recovery stocks such as cruises, live entertainment etc. Sold quickly after 15-50% rally in each. -Win
Continued to DCA into precious metal mining companies as well as Bitcoin & Ethereum -Win
Bought Put options on Tesla with 3 month expiry after stock had a meteoric climb. Very small amount of capital, but contract become worthless after shares immediately skyrocketed. -Big Loss
Bought both shipping companies Uranium mining company Cameco. Shipping companies were a play on negative oil prices and acute storage crisis. Shippers were paid handsomely for storage at sea while the oil glut was dealt with. Unfortunately entered the trade a little late and the glut didn't last as long as anticipated. One shipper we sold for +400% after the stock jumped once the CEO was featured with Jim Cramer. Got lucky that gave a good exit point for the position. Rest of our picks were sold at a +25% loss. -Loss
Moved into other digital assets as the year progressed. Some into speculative Alt coins with strong fundamental and technical analysis. These included BNB, LTC, LINK, UNI, DOT -Big Win
Bought MSRT option shortly after announcing first bitcoin purchase. Closed up 400% -Win
Took profits in some gold miners and rolled procced into purchasing stock for Silvergate Capital. A bank that has done business and deals readily with U.S crypto companies and exchanges. -WIN
Rebought MSRT options with larger amount of capital 100% OTM slated to expire December 20201. Bought Marathon Patent and Riot Blockchain options also with similar expiry. -Big Win