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:
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 and requirements, and it is not investment advice.
It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list.
Calculations are my own. Returns shown do not include trading costs. They do not include any fees. Past performance is not indicative of future performance. Dividends are re-invested.
why benchmark to SPY? Better an equal weighted SPY/TLT/GLD to see how your rebalancing scheme truly adds value. My eyeball estimate of an equal blend of those three, unrebalanced, is about 25%. About same as the GeoRebal, and without trading costs or implementation time.
I’m comparing to the S&P because that’s what everyone sees as it is reported all the time. Its kind of the Schelling point of investing. People can’t get it out of their mind as a reference, and I don’t see the point in fighting that tendency.
You are correct this year the total returns are similar to the permanent portfolio. I don’t expect that every year though.
One query (maybe you have answered elsewhere): For your calculations for each rebalance what is the lookback period for your calculations. Tia.
I haven’t said what I use exactly, but discussed the concept here: https://breakingthemarket.com/convergence-time/