July 2017 Performance

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PERFORMANCE:
The Equal weighted portfolio returned 1.2% and is the baseline for the other portfolios. 

The TA portfolio (which actively allocates among the four asset classes that are in the equal weighted portfolio) outperformed the equal weighted portfolio returning 1.9%. 

The Enhanced portfolio (which uses the allocation of the TA portfolio and seeks to enhance those returns with security selection) did the best, returning 5.1%.

The relevant security returns (used in the above three portfolio's) for the month of July (excluding dividends) were: VTWO 0.8%, IEMG 5.5%, VONE 2.0%, DSEUX 4.3%, KXI 0.7%, JNK 0.5%, AGG 0.1%

 Color significance for whole post: 
Red is small cap equity 
Orange is large cap equity
Purple is high yield debt
Green is investment grade debt

 ALLOCATION:
Allocations during July:



Allocations after today's trades (August 1st).


ATTRIBUTION:
Jul - 17
Allocation Rt
  0.7%
Selection Rt 
  3.2%

 The way to think of this is that the "Allocation Rt" is how much the TA portfolio out (or under) performed the equal weighted portfolio (how much did the asset allocation benefit returns). The "Selection Rt" is how much the enhanced portfolio out (or under) performed the TA portfolio (how much security selection benefited returns).

COMMENTARY:
Equal Portfolio: This portfolio is the baseline, which the other portfolios are based off of.

TA portfolio: Having the full allocation being in equity was helpful as US equity markets continued to have strong returns in July.

Enhanced portfolio:  After a very difficult June, international equities rebounded well in July. among international equities, emerging market's did the best, supported by higher commodity prices. This portfolio is focusing on global equity securities now (global equity is about 50% in US and 50% in international equity).




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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