Rough week, down almost 3.5% since last Friday. In hindsight the increase in stocks wasn’t the correct move. I’ll be the first to point out the strategy makes mistakes. Last February, it did the same thing pushing up into stocks right before the bottom started falling out. On the plus side though, it’s very quick…
Month: October 2020
Portfolio on 10.28.20
Stock allocation have fallen quite a bit during the week, which calls for a midweek rebalance. Stock volatility is certainly much higher, and bonds and gold volatility is not low. On October 28rd, the strategy rebalanced to: 36% SPY , 40% TLT , 24% GLD
Portfolio on 10.23.20
Down a percent for the week. Not a good week for bonds. This hasn’t been the best pullback for the strategy. Volatility and drawdowns have been generally kept in check, but the return side isn’t the best. Usually the strategy outperforms during stock market pullbacks, but not always. The portfolio is moving closer to “normal”…
The Great Age of Rebalancing Begins
Sometimes I’m asked why Geometric Balancing hasn’t been invented and implemented already? Well in many ways it was invented decades ago. But there are two main reasons why it hasn’t been implemented in any widespread capacity yet. The first is psychological.1 Rebalancing costs were the second, and more important reason. Let’s explore through the lens of Shannon’s Demon.…
Portfolio on 10.16.20
Up just over a tenth of a percent for the week. It ended up at about the same place as the stock market (up a tenth of a percent), but took a different road to get there. No changes this week. On October 16th, the strategy remained at: 44% SPY , 40% TLT , 16%…
Portfolio on 10.9.20
Up a little more than a percent for the week. Still slowly moving towards higher levels in stocks. On October 9th, the strategy rebalanced to: 44% SPY , 40% TLT , 16% GLD *All investing strategies come with the risk of loss, including this one. This portfolio may not be appropriate for your investment goals…
It Hits All By Itself
I came across this Bruce Lee clip on the web the other day and was quite taken by it. I don’t have any martial arts background, but listening to this, I thought there is a lot of investing wisdom here. Let’s run through it. To Have No Technique Do not wall yourself off into one…
Portfolio on 10.2.20
Up a quarter of a percent for the week, ending the losing streak. A small change today. On October 2nd, the strategy rebalanced to: 40% SPY , 44% TLT , 16% GLD *All investing strategies come with the risk of loss, including this one. This portfolio may not be appropriate for your investment goals and…