July 31, 2017 Allocation

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Monthly Portfolio Update:
The new tactical allocation for August will be:  
  • Large Cap Equity:  66%  
  • Small Cap Equity:  34%  
  • High Yield Debt:      0%   
  • Inv. Grade Debt:       0%  
Look for a re-cap of performance in August 1st's post.


The Equal portfolio: There are no changes to the equal portfolio. The cash balance at month end is $564.75, total market value is $102,032.59. 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 TA portfolio: The change from the previous month is a reduction in Small Cap Equity (VTWO) and an increase in Large Cap Equity (VONE). This makes the portfolio a little 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 cash in the account. The calculation is $103,115.95 / 12 = 8,593.00 + 428.81 = $9,021.81.

I will sell ~$8,593 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. This months allocation is going to a global utilities sector ETF (ticker JXI). The utilities sector focuses on electricity, natural gas, and water. The sector has done well in past market downturns and continues in the theme of adding defensiveness and international exposure to the portfolio. Global means that it has exposure to all regions weighted by market values.  This puts about half the allocation in the US and half elsewhere. 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 $549.15. The calculation is $103,732.28 / 12 = $8,644.36 + $549.15 = $9,193.51.

I will sell ~$8,644 of IEMG and purchase JXI with the proceeds and cash in the account.

I will make trades and post the details as well all last months performance update on August 1st.

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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