Up nearly nine tenths of a percent for the week. Could we have asked for a better December? On December 27th, 2019, the portfolio rebalanced to : 68% SPY , 20% TLT , 12% GLD
Portfolio on 12.20.19
I thought we might get some changes earlier this week, but everything returned to where it started. Gains were nearly identical to last week too, up nearly three quarters of a percent for the week. On December 20th, 2019, the portfolio stayed at: 60% SPY , 20% TLT , 20% GLD
Portfolio Blitzkrieg
With no fear of the future and full trust in my model, Geometric Balancing can theoretically achieve eyepopping returns. A backtest with “extreme leverage” produces 56% annual arithmetic average return. To do so, you would have to fully push the strategy with no safety factors, averaging 5x leverage, and driving up to 12x at times. While…
Portfolio on 12.13.19
Up three quarters of a percent for the week. We continue a long stretch of not much really happening, slowly making money with far less volatility than any of the individual assets. On December 13th, 2019, the portfolio rebalanced to: 60% SPY , 20% TLT , 20% GLD
Portfolio on 12.6.19
Down about 0.15% for the week. Bond volatility is still fairly high. Stocks vol increased, but not by a huge amount. On December 6th, 2019, the portfolio stayed the same at: 64% SPY , 16% TLT , 20% GLD
Geometric Balancing, With Leverage
Leverage is a double-edged sword, but one I’ve grown to appreciate over the last few years. If you’re not careful, it will destroy you. However I’m not sure it’s possible to create world class, spectacular, returns without it. Used wisely, leverage actually increases the risk adjusted returns of a portfolio. Leveraged Geometric Balancing uses a…
Portfolio on 11.29.19
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
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