Good week, up 0.85%. The strategy is getting back into a more neutral portfolio. Bonds are calming down, which is why their portfolio percentage is heading back to typical levels. Pretty calm out there in all though. On November 29th, 2019, the portfolio rebalanced to: 64% SPY , 16% TLT , 20% GLD
Month: November 2019
Portfolio on 11.22.19
Effectively flat for the week. Not much change, except moving into gold more, which I didn’t expect. This is still a fairly aggressive portfolio historically. On November 22th, 2019, the portfolio rebalanced to: 72% SPY , 12% TLT , 16% GLD
Optimal Portfolios For Two Assets
Let’s discuss the proper way to mix two risky assets in a portfolio. I explained mixing one risky asset with cash before. Let’s up the complexity. I’m going to continue exploring how to mix assets3 with the aim of maximizing your long term wealth through the geometric return. If you haven’t read the prior post…
Portfolio on 11.15.19
Ok, now we get our new high. Up 1.1% for the week. Stock volatility keeps falling, so the portfolio moves further toward stocks. On November 15th, 2019, the portfolio rebalanced to: 76% SPY , 16% TLT , 8% GLD
Portfolio on 11.8.19
That’s what I get for saying a new high was on the horizon. Down 0.8% for the week. Stock Volatility is quite low, and bonds are not, which is why the Portfolio keeps moving more into socks over the last few weeks. Sometimes this pattern doesn’t end well for stocks (Jan 2018, Oct 2018), but…
What is the Expected Return?
Everyone agrees on the expected values at the extremes – it’s the middle that confuses people. For a single period, the expected value is the arithmetic average. Over a very long time (infinite), the expected value is the geometric average. But in-between the expected value becomes less obvious. Let’s shed some light on this problem.…
Portfolio on 11.1.19
Good week, up 1.4%. The strategy is nearly at a new all time high (less than a tenth of a percent to go). So while the S&P 500 set new highs this week, geometric balancing followed right there with it. Of course my high was set in early September, not late July. These concepts really…