Tactical Allocations

Monthly Portfolio Update: The new tactical allocation for October will be:   Large Cap Equity:   92%   Small Cap Equity:     8%   High Yield Debt:        0%    Inv. Grade Debt:        0%   Look for a re-cap of performance on November 1st. The Equal portfolio: It is now time to make our first trade in the equal weighted portfolio. The cash balance at month end is $1260.32. The Investment Grade Debt and High Yield Debt allocations are quite a bit lower than the two equity allocations and so I will split the trade into two. Half going into each.  I will buy about $600 of each AGG and JNK. I will favor AGG as it has the lowest balance in the portfolio. Total market value of this fund is $105,042.35. The TA portfolio:  The change from the previous month is another reduction in Small Cap Equity (VTWO) and an increase in Large Cap Equity (VONE). I will sell 1/2 of the V...

I have seen a number of articles recently discussing the growing wealth gap in the United States. There are many reasons for this but I think one of the most important that I have heard is that the rich hold more stock. They hold ownership in companies. They take more risk with their savings. I would point to a few observations that I think everyone should be aware of in regards to this discrepancy. What we think of as "risk-free" actually has a great cost. There are structural considerations for how much risk one can take. What can you do (if you are not rich) to tip the scales in your favor. 1) The risk in "risk free" investing:  There is no "risk-free" asset. Over time money markets (short term Treasury bonds) have barely kept up with inflation so if we take inflation out of the equation money markets earn you nothing. Yet many consider them a "risk-free" asset. While there may be very little risk that you do not get paid back there ...

TRADES  (performed on October 2nd) : Equal Weight Portfolio: Beginning cash $889.92 No trade made because allocations were within acceptable range and cash was below $1000 Expect to make a trade next month TA Portfolio: Beginning cash $93.04 Sold 76 shares of VTWO at $119.43 per share, $7 commission, total proceeds $9,069.68 Purchased 79 shares of VONE at $115.6628 per share, $7 commission, total cost $9,144.36 Cash left over $18.36 Enhanced TA Portfolio: Beginning cash $230.36 Sold 167 shares of IEMG at $54.02 per share, $7 commission, total proceeds $9,014.34 Purchased 182 shares of JXI at $50.7392 per share, $7 commission, total cost $9,241.53 Cash left over $10.17 I will update last months performance with the allocation adjusted for today's trades later today. 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...