Up 0.9% for the week. The strategy is back within a quarter of a percent from the daily high set on the 21st of February. It set a new monthly high today, up nearly 5% for the year. Why Is This Working? Since the strategy is now above it’s prior level on the day the…
Month: May 2020
Repetition Economics: The Story of the Hunter, the Mammoth, and The Wolves
Imagine you’re an early human. When out hunting for food you spot a woolly mammoth in a vulnerable position. Your family hasn’t eaten in days. Much of the tribe is desperate for food as well. Do you attack? The Mammoth. What would go through an early human’s mind to make this decision? Obviously, bringing down…
Portfolio on 5.22.20
Up 1.1% for the week. The cash is gone now for the first time since February 28th. The portfolio is up about 3% since that day, while the S&P 500 is about flat over that horizon. Year to date the strategy is up 4.2%, clipping the S&P 500 by 11.9% for the year. All the…
Portfolio on 5.15.20
Up about a tenth of a percent. The new portfolio is interesting. The foundation — the relationship between returns, volatility and correlation — is pretty standard right now. Slightly conservative, but not much. However, the standard deviation of everything is similarly elevated and a bit more correlated than usually. That’s why the portfolio can’t shake…
The Road Not Taken
You have a journey to make. You need to head west 15 miles as the crow flies over a mountain ridge, and then go 15 miles down the valley on the other side. So you head out for a drive. The start of the trip entails climbing up and over the ridge, and is full…
Portfolio on 5.8.20
Up a quarter of a percent for the week. Moving back into more cash as bond volatility has gone up quite a bit and correlation is rising. On May 8th, 2020, the strategy rebalanced to: 35% SPY , 26% TLT , 19% GLD , 20% Cash
Optimum Portfolio: Two Assets and Cash
Time to get to some unfinished business. A few months ago I said I would shortly discuss adding cash to create a small geometrically optimized portfolio. I’ve taken too long to get this post out. So here is the process to maximize the geometric return of two assets and cash. Additionally I’ll show you how…
Portfolio on 5.1.20
Down three fourths of a percent for the week. My statement last friday hopeful for new highs did jinx the winning streak, although the April close still set a new monthly top. It got within a percent of a new daily high on Wednesday before making a U turn these last two days. Still lightening…