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
*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.
how would your performance compare to an equal weight average of SPY,TLT, Gold, Cash? Rebalanced,say, quarterly or monthly. Not appropriate to benchmark to the single asset class SPY
Over this live period, similar, with lower vol. There’s programs on the internet to create that portfolio yourself if you want to compare https://www.portfoliovisualizer.com/backtest-portfolio.
I am a very grateful follower of your model; it feeds into my asset allocation and risk management. I have noticed that the bond and gold allocations frequently change by exactly 4% increments, is there a reason for that beyond computational limitations or keeping things simple?
Yes and No. I wouldn’t spend the time or expenses to rebalance a portfolio for a 1% difference. So I built it to only output 4% increments so I wouldn’t even see the really tiny moves. So your keeping it simply thought was correct.
However, I don’t have a good reason why I choose 4% over another number.