Private Trader - The Defense of the Port
Educational only. This Market Log entry reflects the personal market views and interpretations of a private trader investing only their own capital. It is impersonal, does not consider your objectives, financial situation, or needs, and does not constitute financial advice, financial planning, portfolio management, or a recommendation or solicitation to buy or sell any security. All content is for educational and informational purposes only.
P26-02-04
We’re now several weeks into 2026, and the portfolio has transitioned deeper into a defensive operating state.
2026 +3.5% YTD RCE (Realized Capital Efficiency), with portfolio:
35% Cash
25% US Treasuries
40% Equities/ETFs
The “Do Not Touch” Variable
Think of them like structural disqualifications, simply put “stocks you never buy”, based on how they behave, their setups or what-not; regardless of how attractive they might be. I’ve entered multiple ETFs within this category, with a relatively-low-portfolio-weight, and they have been absolutely brutal; net-negative over time, and any equity within this realm has been eliminated from future portfolio considerations; an unfruitful experience. Full stop.
I now know this, however, I’m left with the consequences of my previous moves. These positions are deep within the red. They are no longer part of any growth variable as they’ve now transitioned into salvage operations, one purely focused on extraction; AKA capital recovery.
Whatever you do, ensure you adapt your approach otherwise one will be paying for such errors in perpetuity.
Positioning
I sold my largest position a few days ago and transitioned a portion into a highly defensive equity known for resilience in times of the unknown; which to me, is times of today, hence my increasing cash-state. I must maintain market exposure, yet must keep it within very specific boundaries, even then, it could all be futile. Be overly defensive in times of today
Time will tell, and we’re not too far from it; all the best and party forth!
Market Log entry · Private trader investing own capital only. Originally published on Madalytics before any external platforms.