Up nearly two tenths of a percent. Correlation seems to be falling, so the cash isn’t deemed necessary for protection any longer. Getting close to equal weight between the 3 assets. On June 26th, 2020, the strategy rebalanced to: 36% SPY , 36% TLT , 28% GLD
Category: Strategy
Portfolio on 6.19.20
Up just over half of a percent. Fairly calm week (relatively) with steady gains. The increased calmness leads a reduction in cash. Interesting it went mostly to gold. On June 19th, 2020, the strategy rebalanced to: 30% SPY , 38% TLT , 27% GLD, 5% Cash
Portfolio on 6.12.20
Down three tenths of a percent. The week started off wonderfully, with new all time daily highs set on Tuesday and Wednesday. Then Thursday happened, falling nearly 2%, and brining back memories of March. I’m glad there was a bit of cash in the portfolio to cut the losses this week. Obviously the strategy becomes…
The Strategy One Year Later: Portfolio on 6.5.20
One year ago today I started posting the portfolio positions so others could see in real time how Geometric Balancing works. It’s been quite a year, and in many ways you’ve gotten to see the response in a variety of markets. We had three strong stock bull runs: early last summer and then from the…
Portfolio on 5.29.20
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…
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…
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…