Portfolio Rebalancing - Jan 2018 - Done!

When the speculative part of your investment portfolio moons, you really have no choice but to rebalance your entire investment portfolio, that is if you are following best practice portfolio management concepts. See my Buy Low, Sell High post for more on that.

Being that my crypto investments are inarguably speculative, and since the speculative part of a balanced portfolio shouldn’t exceed 10-15% of the total portfolio, in the last couple of days I’ve had to completely rebalance my total investment portfolio. This required making difficult decisions, the first of which had to due with how much STEEM and BTS I was willing to part with. In the final analysis, the answer was “as little as possible”. That meant complete liquidation of some of my holdings.

Basically my portfolio management criteria obligated me to sell around half of my total crypto, and since I wanted to hang on to as much STEEM and BTS as possible, I had no other choice but to let go of all of the older, crypto 1.0 holdings. Like Hive account@stan said in this interview a few days ago, I also believe that POW is on its way out, so I cashed out of SYS (although they do have a planned conversion to a masternode type PoS, but it seems to be taking more time than initially thought), GRS, NLG and DGB. I also sold everything but a handful of ADA, in this case because I think it’s getting pricy.

In the end, I’ve brought my total investment portfolio more or less in line, but in doing so I've taken my crypto portfolio down to a very low level of diversification with STEEM, BTS, BitUSD, some SBD, and that handful of ADA. This could be viewed as a rather risky portfolio given the lack of diversification, but it just may be the case that STEEM and BTS move completely out of the speculative category altogether in 2018, in essence becoming members of the “growth” part of my total portfolio, leaving the speculative phase behind. Suffice it to say that I’m very positive on the future of both STEEM and BTS, and while I would not be initiating new positions at these levels, I’m not willing to sell them either.

Remember, the idea is to buy low and sell high, and especially so when it comes to speculative investments where buying high often means losing it all.

Hope everyone else is happily rebalancing as well. There are lots of profits to lock in. Remember, nobody ever went broke taking profits.

Hive account@cryptographic