Here are the updates for the income investor dashboard and the IVY timing model for the end of January 2012.
The income investor dashboard for January 2012 is below.
First a few changes for the dashboard from last year. Most importantly I am only listing investable products in the dashboard. No more indexes like AMZ – instead I replaced it with the MLP ETF AMJ. Also, gone are the yields for gov’t bonds. I didn’t think they were adding any value. I also added two new products that track the two CEF indices. PCEF and XMPT track the CEF indices for income funds and for muni funds respectively. They are very new ETFs and quite small in size so caveat emptor. I want to have them in the dashboard to track trends in the CEF space.
As for the dashboard results for January the best I can say is risk on! It was the best Jan for stocks since 1997 I think. And bonds held up very well in such a strong stock rally. There were only two losers for the month. XLU and TLT, two of the best performers of 2011. We’ll see how these gains hold up in Feb but for now the trend is higher.
Next up is the January IVY model timing model update. See below. For more details see dshort’s updates. VTI and IYR entered buy mode this month. Three of the five ETFs are now in buy mode. Now 60% of the portfolio is invested and 40% is in cash. Commodities, DBC, and foreign stocks, VEU, are still below their 200 day SMA.
4 Comments
Doug (@dougnashif) · February 3, 2012 at 6:26 am
Thanks for the post and its nice to have you back Paul. Are you still using your covered call strategy this year?
libertatemamo · February 3, 2012 at 9:28 am
Doug, I haven’t done any diagonal calls (what I call leveraged covered call) this year. I’m finding better setups with other strategies. But I always look around and see of something pops up. TLT is looking like an interesting setup for a diagonal call especially after today’s beating. Although just going long a deep ITM call has more upside and would be a good hedge to a pullback to this market.
Paul
J Carroll · February 3, 2012 at 1:01 pm
Paul, I am not sure what you mean by “leveraged covered call.” Could you explain that term? Thanks.
libertatemamo · February 4, 2012 at 8:14 am
Sure, I did a post on it a while back, here. Its my term for a diagonal call spread.
Paul
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