Gave back all the gains from the week before, down 1.2% for this week. Gold and bonds were great help for most of the year, but not the last few days. I’m glad the strategy recently reduced it’s exposure to these two, I just wish it had gone further.
I mentioned last week how the assets were acting more correlated. The trend continued this week. Tuesday was especially ugly. When correlated, gold and bonds don’t provide as much help, especially when volatile. Gold and bonds aren’t really playing defense right now. Therefore the portfolio owns less of them.
Cash comes back in to throttle the overall potential for a meaningful drawdown. Right now it’s (projected) a bit higher than I’d like. On August 14th, 2020, the strategy rebalanced to:
72% SPY , 11% TLT , 7% GLD , 10% CASH
Is it possible (and easy) to add the leverage component to this sheet (like, “prior week’s return when using leverage)”? I’m trying to rebalance continuously to see how much value that adds, and I want to compare, but I’m using leverage and I can’t tease out the two effects. As of 8/14, you have a cumulative gain here of 6.76%, whereas my portfolio is 9.03%, which I am sure is almost all leverage effect.