Up three tenths of a percent for the week. Volatility continues to fall in stocks, while staying above average in the other two. On December 11th, the strategy rebalanced to: 64% SPY , 28% TLT , 8% GLD
Category: Strategy
Portfolio on 12.4.20
Just barely down for the week. Essentially flat. Stock continue to run, as the strategy stays relatively still, held back by poor performance in bonds and gold (although gold was great this week). I view these periods as the defensive assets needing to reset themselves so they have the firepower to provide protection on the…
Portfolio on 11.27.20
Up about four tenths of a percent for the week. Equities exploded upwards this month. Geometric Balancing had a good month too, but it’s never going to match a 10% upside month from stocks. Volatility works both ways and sometimes the good gets throttled instead of the bad. On November 27th, the strategy rebalanced to:…
Portfolio on 11.20.20
Essentially flat for the week. Correlations moved back into negative territory, and volatility has come down, so the cash isn’t needed any longer. Historically this is an average portfolio at nearly a perfect 60/40 ratio of stocks to bonds, with an additional bit of of gold for diversification. On November 20th, the strategy rebalanced to:…
Portfolio on 11.13.20
Down about a quarter of a percent for the week. Last week I said the strategy added cash, worried about increased portfolio volatility. Well Monday proved the move was warranted. Interestingly, since I started posting these positions in June of last year the S&P 500 has now caught up to and slightly passed Geometric Balancing…
Portfolio on 11.6.20
Up over 4% for the week. Unusual movements in prices after the election. Everything was up, and up big. So now the correlations and volatility are up. This is a good example of how the strategy doesn’t care about the direction of movements. It reacts to volatility increases from big gains same as from big…
Portfolio on 10.30.20
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…
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”…
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%…