Sept 29, 2017 Allocation

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Monthly Portfolio Update:

The new tactical allocation for September will be:  
  • Large Cap Equity:   83%  
  • Small Cap Equity:   17%  
  • High Yield Debt:       0%   
  • Inv. Grade Debt:       0%  
Look for a re-cap of performance on October 2nd.


The Equal portfolio: There are no changes to the equal portfolio. The cash balance at month end is $889.92, total market value is $103,957.14. 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 will sell 1/3 of the VTWO shares (which is 228/3 = 76). The total market value of this portfolio at month end is $105,576.98.

I will sell 76 shares of VTWO and purchase as much VONE as possible with the proceeds plus cash in the account, which is currently $93.04. 

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 buy more of the Global Utilities ETF (JXI) for this fund. Utilities tend to outperform in difficult environments so they are a little more defensive than the index. Global gives about 50% exposure outside the US and I believe the US is expensive compared to other developed countries. The calculation for this account will follow the same logic as the TA portfolio. I have 504 shares of IEMG so 504/3 = 168. The total market value of this portfolio at month end is $106,042.11.

I will sell 168 shares of IEMG and purchase as much JXI as possible with the proceeds plus cash in the account, which is currently $230.36.

I will make trades and post the details on October 2nd.

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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