Have you ever read something, and instantly thought, that just blew my mind. Well this post is about one of those moments for me, and hopefully it will be the same for you as well. I’m also going to introduce you to the brilliance of Ole Peters and Alexander Ademou and their work on Ergodicity.…
Month: September 2019
Portfolio on 9.27.19
Down 3/4th of a percent for the week. Only bond up for the week, and not that much. September hasn’t been the best month but – as I said a few weeks ago – after the great august, I expected it to cool off for a bit. On September 27th, 2019, the portfolio rebalanced to:…
Stocks, Treasuries, and Gold
Everything should be made as simple as possible, but not simpler. Albert Einstein How can only three assets plus cash produce such amazing returns? Well, all three assets complement each other in way other assets just can’t. They work so well together, there really isn’t any reason for anything else. Simplify as much as possible,…
Portfolio 9.20.19
Up nearly a half percent for the week. I’m glad the week was up, but really the portfolio didn’t do well, as bonds and gold had great weeks, but the strategy didn’t own much of them. It’s not perfect. But it did beat the S&P500 by over a percent, which is nice. On September 20th,…
Portfolio on 9.13.19
A good week to dump bonds. And did we ever dump them. Bond volatility rose and so did correlation with stocks. Luckily some of our dumping came before (and during) this weeks sell off. The strategy was down a 1.3% for the week. Nearly the worst week of the year. But I suspect most strategies…
Portfolio on 9.10.19
I wasn’t paying attention yesterday, but the portfolio moved more than 10% in its SPY and TLT composition. Bond volatility is rising, and maybe more importantly, the correlation with stocks is rising too. Based on my prior rule, I should have rebalanced yesterday, but didn’t get a chance to do so until until today (I…
The Origins of Passive Investing, and Its Future.
Is passive investing going to destroy the stock market? There has been much chatter on the internet lately about the perils of passive investing and its ability to ultimately take down the stock market. Michael Burry, of the big short fame, recently stated he believed passive investing was a bubble, and ultimately would cause the…
Portfolio on 9.6.19
Up 0.4% for the week. It’s looking like the market might have bottomed. We’ll see, I’m not making a prediction either way. If it does bottom, expect the strategy to under perform the S&P 500 for a few weeks. Historically it has always lagged a bit on the initial rebound. Remember, the unlevered portfolio only…