June 30, 2017 Allocation

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Monthly Portfolio Update:
The new tactical allocation for July will be:


  • Large Cap Equity:  58%  
  • Small Cap Equity:  42%  
  • High Yield Debt:      0%   
  • Inv. Grade Debt:       0%  






Look for a re-cap of performance in July 3rd's post.

The Equal portfolio: There are no changes to the equal portfolio.  I will only rebalance when weightings get off by 5% or more (i.e. one of the asset classes has less than a 20% or more than a 30% weighting) or the cash balance hits $1000. The cash balance at month end is $197.27.

The TA portfolio: The change from the previous month is a reduction in Small Cap Equity and an increase in Large Cap Equity. This makes the portfolio more defensive, however it is still 100% in equities and therefore very bullish.  The size of the trade will be 1/12th of the total portfolio value ( market value of portfolio/12) plus any dividends received (there were none for this account for this month). The calculation is $101,184.60 / 12 = 8432.05 + 14.68 = $8,446.73.

I will sell ~$8,432 of VTWO and purchase VONE with the proceeds and cash in the account. 

The Enhanced portfolio: The change for this portfolio follows the allocation for the TA portfolio. It will be to add large cap equity. I am going to focus on a defensive sector fund that will also add a very small amount of U.S. exposure. This months allocation is going to KXI, a global ETF that focuses on consumer staples (things like food and toothpaste). The sector has done well in past market downturns and adds some defensiveness to the portfolio. The fact that it is global means that it has exposure to US, Europe, Japan and Emerging markets domiciled companies. The calculation for how much to sell is the same as for the TA portfolio (1/12th of the value of the fund plus cash in the account of $158.48. The calculation is $98,713.97 / 12 = $8,226.16 + $158.48 = $8,384.64.

I will sell ~$8,226 of IEMG and purchase KXI with the proceeds and cash in the account.

I will make trades and post the details on July 3rd.

Disclaimer:
Past performance is not a guarantee of future performance.  This strategy is presented for informational purposes only and is not a solicitation to buy or sell any securities. October is one of the peculiarly dangerous months to speculate in stocks in.  The others are July, January, September, April, November, May , March, June, December, August and February. ~ Mark Twain

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