Selling The Drama: HYLB

And to right or wrong
And to weak or strong
It is known, just scream it from the wall

I've willed, I've walked, I've read
I've talked, I know, I know
I've been here before

In September 2020, four triggered sales marked the beginning of my portfolio's major flip from growth to income.  At that time, I was attempting to do the right thing - in this case, not being greedy and preserving my gains.  If I had a large banner reading MISSION ACCOMPLISHED handy at that moment, I would have unfurled it over my computer desk as the transactions executed.

Fast forward 1.5+ years to the present day: a reassessment is warranted.  My intentions were good.  And if the growth stocks that I sold didn't continue to grow like they had, I would have been correct in my actions.  But they did, and therefore I was not.  I was too conservative.

I could say I made a mistake - and in monetary terms, I certainly did - but instead I'll just say that I made a non-optimal decision.

Today, I've begun the unwinding of that decision.  I've sold a substantial chunk of my HYLB to fund a purchase of my favorite group of ETF/Ns:  GLDI, SLVO, USOI, QYLD, RYLD, and XYLD.  I believe these to be more risk-appropriate.

Another key reversal from my previous decisions is that this is a partial sale.  I've justified "when selling a holding, sell every share" for two reasons:

• why hold on to something I don't believe in 100%?; and
• simplification of bookkeeping.

To which I can now offer this rebuttal:

• the lack of belief may be misguided; and
• the tax consequences of selling everything can be significant.

And so accordingly; HYLB, PFFD, USHY, and any other positions that I will exit in the future will be unwound over time.

Boilerplate time...

As a stretch goal: for dividend income purposes, I'd like this portfolio to eventually be as much as a 50/50 25/75 split between stocks and yield.  As seen below, it is currently 38/62.

I am in no rush to flip into yield. I would rather let my winners run forever.  However, if in any given month I see no stocks that present themselves as especially good buying opportunities, I have no reservations in simply adding to my bond, preferred stock, leveraged ETFs and/or covered call ETF/Ns. It is truly a month-to-month situation (as it has always been!).

For the foreseeable future, I want to track my Big Five Two every month, whether I buy them or not.

Amazon (AMZN)

• $1.18T market cap
• no dividend
• $477.8B revenue
• 7% revenue growth
• $66.4B cash
• $113.3B debt
• $39.3B operating cash flow
• $18.0B free cash flow

Microsoft (MSFT)

• $2.07T market cap
• 0.9% dividend yield
• $192.6B revenue
• 18% revenue growth
• $104.7B cash
• $78.0B debt
• $87.1B operating cash flow
• $48.9B free cash flow

Here's my current portfolio (buy, hold, and sell).  As always, I believe in all of these stocks/ETF/ETNs - until I sell them.

Microsoft (MSFT) 15.31%

Credit Suisse X-Links Crude Oil Shares Covered Call ETNs (USOI) 7.53%

iShares Broad USD High Yield Corporate Bond ETF (USHY) 11.68%

Global X U.S. Preferred ETF (PFFD) 10.95%

Amazon (AMZN) 9.42%

Invesco NASDAQ 100 ETF (QQQM) 6.60%

Global X NASDAQ 100 Covered Call ETF (QYLD) 6.44%

Credit Suisse X-Links Silver Shares Covered Call ETN (SLVO) 6.05%

Global X Russell 2000 Covered Call ETF (RYLD) 5.38%

Global X S&P 500 Covered Call ETF (XYLD) 4.29%

Credit Suisse X-Links Gold Shares Covered Call ETN (GLDI) 3.70%
Invesco NASDAQ Next Gen 100 ETF (QQQJ) 2.47%

UnitedHealth Group (UNH) 1.84%

Costco Wholesale (COST) 1.83%

ProShares UltraPro QQQ (TQQQ) 0.09%

ProShares UltraPro S&P 500 (UPRO) 0.06%

ProShares UltraPro Russell 2000 (URTY) 0.05%

Direxion Daily CSI China Internet Bull 2X Shares (CWEB) 0.03%

Direxion Daily S&P Biotech Bull 3X Shares (LABU) 0.02%

Direxion Daily Semiconductor Bull 3X Shares (SOXL) 0.03%

Direxion Daily S&P 500 High Beta Bull 3X Shares (HIBL) 0.02%