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Tag Archives: tactical asset allocation
Note: thanks to those who signed up to Allocate Smartly through my link. It’s provided a nice extra revenue stream that is much appreciated. One of the TAA strategies that I have often been asked about is Antonacci’s Composite Dual Momentum (ACDM from now on). I never got around to tracking or writing about it but now the the folks at Allocate Smartly have it covered. In this post I’ll highlight the key details of the strategy and it’s results using the recent blog post from Allocate Smartly. The ACDM strategy basically applies the dual momentum concept from Antonacci’s GEM strategy to … Continue reading
I knew this time would come eventually and here it is. Starting this month I will not be publishing any further tracking updates on TAA portfolios. Going forward I will be using and recommending Allocate Smartly for TAA portfolio tracking and implementation. Here’s the why and some details on the platform. The number of portfolios I was tracking and wanted to track, and the quality of the information I wanted to provide was proving to be a bit too much. Also, my interests lie more in how to use these portfolios, e.g. to optimize safe withdrawal rates, instead of the … Continue reading
Here is the very quick version of the tactical asset allocation update for Oct. Signals are valid for until the end of the month. Below is the snapshot for the AGG3, AGG6, and GTAA13 portfolios. The source data can be found here. One change for AGG3. VBK replaces VNQ. Two changes for AGG6. IAU and VEA replace VNQ and VGLT. For the Antonacci dual momentum GEM and GBM portfolios, GEM remains in SPY, and the bond portion of GBM is in CRED. The Antonacci tracking sheet shareable so you can see the portfolio details for yourself. The Bond 3 quant model, see spreadsheet, ranks the bond ETFs by 6 month … Continue reading
Here is the tactical asset allocation update for August 2016. Below is the snapshot for the AGG3, AGG6, and GTAA13 portfolios. The source data can be found here. This is a new version of the sheet. Google updates the Sheets program every so often and old version of sheets just stop working. That happened this month so I had to do a new version. The sheet contains the IVY5, GTAA5, and the Permanent Portfolio as well. These signals are valid after every trading day. So, while I’ll maintain these month end updates this means that you can implement your portfolio changes on any … Continue reading
Here is the tactical asset allocation update for July 2016. If you didn’t listen to the news all month or didn’t check prices during the month then you would think it was a pretty uneventful month and overall quite a decent month for almost all asset classes. Unfortunately, like most people you probably at least paid some passing interest to the event du jour. This month it was Brexit (or the referendum vote in the UK to leave the EU which passed by a slight majority which was a surprise to markets). I’ll just say a couple of things about … Continue reading
Time for the part 3 of the series on using economic indicators to time the market. In this post I’ll add a simple extension to the models analyzed in Part 2. If you haven’t read the first two posts you won’t understand this one. I’m just extending the model to include foreign stocks, foreign developed and emerging markets. This is much more reflective of real diversified portfolios – even with the heavy home bias amongst US investors. Lets see what that does to the results. For foreign developed stocks I’m using EFA ETF because it has the longest history. Similarly, … Continue reading
Here is the tactical asset allocation update for June 2016. Below is the snapshot for the AGG3, AGG6, and GTAA13 portfolios. The source data can be found here. The sheet contains the IVY5, GTAA5, and the Permanent Portfolio as well. These signals are valid after every trading day. So, while I’ll maintain these month end updates this means that you can implement your portfolio changes on any day of the month, not just month end. FINVIZ will at times generate signals that are slightly different than Yahoo Finance. Also, year to date performance figures have been updated and are included in the sheet. … Continue reading
In my last post I looked at using the change in trend of the unemployment rate as a market timing indicator. The results were impressive to say the least – almost a doubling of risk adjusted returns over buy and hold. In this post I want to make the analysis I did a little more real world by adding safe assets to the mix. Let’s take the same analysis from the last post and add US gov’t bonds as the safe asset to switch into when the market timing indicator triggers an exit from US stocks. I’ll use real world … Continue reading
If you pay attention to the financial market news you may have noticed a lot of attention being focused on the slowing US/Global economy and the implications it has for financial markets. Just do a search on ‘slowing global PMI’ and watch the hours waste away. Basically, the US/Global economy is slowing which means recession is right around the corner which means financial markets will tank. That seems to be the predominant bear case now, or one of the many. There is some merit to this argument. The worst market downturns occur during recessions. The trick is that you need … Continue reading
Here is the tactical asset allocation update for May 2016. Before I get into the updates for the month I want to share a must read post from Antonacci. In the post he lists some questions he often gets asked about markets and investing. Here they are; Question: How much do you think the stock market can drop? Response: 89% Question: What?!! Response: Well, that is the most it has dropped in the past. But past performance is no assurance of future success, so I guess it could go down more than that. Question: I just looked at my account, … Continue reading