The decision last week to go heavy stocks and no bonds looked pretty good for half the week. Stocks were down, but they were down less than everything else. Then the Fed started talking. I honestly didn’t pay much attention to what they said, but its clear the market did as everything switched soon after. Stock-Bond correlation dropped dramatically thereafter. I’ve never been good at predicting the Fed, and I guess neither is Geometric Balancing.
Even though the update came yesterday, the portfolio continued to evolve quite dramatically today. So we get a strange “mid week” update on a Friday. Lower correlation came back with a vengeance and so do bonds to the portfolio. On June 18th the portfolio rebalanced to:
60% SPY , 32% TLT , 8% GLD
See the Portfolio page for charts and tables. It will update soon if it hasn’t already
*All investing strategies come with the risk of loss, including this one which we all saw clearly this week. This portfolio may not be appropriate for your investment goals and requirements, and it is not investment advice.
When are you going to add 1/3 Gold, 1/3 Stocks and 1/3 Bonds to the portfolio graph?
That’s a very interesting benchmark (rebalanced monthly).
60/40 Stocks/Bonds might be worthwhile too, as that’s the “industry standard”. Boring though!
On the other hand, this is pretty sweet:
20% Gold, 20% Stocks, 20% Bonds, 20% BTC, 20% Cash
That’s what Harry would do these days…