Oct 31, 2017 Allocation

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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 VTWO shares (which is 152/2 = 76). The total market value of this portfolio at month end is $108,190.56.

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 $483.90. 

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 DSEEX* for this fund. DSEEX* is a US equity based fund managed by Doubleline. The strategy seeks to hold the four sectors with the best valuation and adjusts which sectors it holds monthly. The calculation for this account will follow the same logic as the TA portfolio. I have 504 shares of IEMG so 337/2 = 168. The total market value of this portfolio at month end is $107,279.48.

I will sell 168 shares of IEMG and purchase as much DSEEX* as possible with the proceeds plus cash in the account, which is currently $165.08.

I will make trades and post the details on November 1st.

* NOTE: DSEEX has purchase limits, if you buy in an IRA account you can buy as little as $5000, in a regular account you have to buy $100,000.  Alternatively, you can buy DSENX which is the same fund with 0.25% higher fees and has an IRA minimum of only $500 and $2000 for a regular account.

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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