Aug 31, 2017 Allocation

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Monthly Portfolio Update:
The new tactical allocation for September will be:  
  • Large Cap Equity:   75%  
  • Small Cap Equity:   25%  
  • High Yield Debt:       0%   
  • Inv. Grade Debt:       0%  
Look for a re-cap of performance on September 1st.

The Equal portfolio: There are no changes to the equal portfolio. The cash balance at month end is $727.11, total market value is $102,021.92. 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. I am adjusting the way I calculate what to sell this month. Instead of selling 1/12th of the whole portfolio I am going to sell 1/4 of the VTWO shares (which is 304/4 or 76). I am doing this by shares so that if I keep selling VTWO, in four months I do not end up with a small amount left over.  Once I get to 12 months I would hope to sell all the shares bought one year earlier. The total market value of this portfolio at month end is $102,820.16.

I will sell 76 shares 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 sell small cap equity and add large cap equity. I am going to go with the benchmarks holding this month (VONE) for this fund as well. The calculation for this account will follow the same logic as the TA portfolio. I have 671 shares of IEMG so 671/4 = 167.75 so I will sell 167 this month and 168 in each of the next months. The total market value of this portfolio at month end is $105,224.04.

I will sell 167 shares of IEMG and purchase VONE with the proceeds and cash in the account.

I will make trades and post the details on September 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

Comments

  1. Mike RaySeptember 1, 2017 at 7:05 AM

    Thanks Bryan! Another great post! I just want to say - it's VERY HARD for me to sell the best performing asset in the basket (IEMG).

    ReplyDelete
  2. Bryan BaggenstosSeptember 1, 2017 at 7:37 AM

    Me too! But that is the discipline (buy low sell high). If it makes you feel any better a couple of high profile investment managers have recently come out and said they are exiting emerging markets completely. See article https://www.bloomberg.com/news/articles/2017-08-28/traders-ditch-risk-as-dalio-to-gundlach-warn-on-emerging-markets

    ReplyDelete

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