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…
Reflecting At The Milestones: Implementing the Partial Kelly Strategy
We’ve taken a long journey together through the world of Geometric Balancing, traveling through some deep concepts together: We’ve learned about the geometric return and why it’s all that matters. We’ve acknowledged that the investing returns look mostly random. We’ve explored why rebalancing improves returns by moving them from the geometric to the higher arithmetic…
Portfolio on 9.25.20
Total for the week down 0.89%, including Monday before the rebalance. Mild changes today. It bounced today between staying with the same portfolio and this small adjustment. On September 25th, the strategy rebalanced to: 36% SPY , 48% TLT , 16% GLD On a good note, since my last update to the code, I haven’t…
Portfolio on 9.21.20
Portfolio composition changed a lot today, especially in bonds and gold. Correlations on bonds and stocks dropped further and volatility on gold and stocks increased. So under the plan to try and stay “in balance”, there needs to be an update today. The portfolio moved from acting like the permanent portfolio, towards a risk parity…