Tactical Allocations

Monthly Portfolio Update: There is no change to the tactical allocation for May; The allocation remains:   Large Cap Equity:   100%   Small Cap Equity:     0%   High Yield Debt:        0%    Inv. Grade Debt:        0%   The Equal portfolio:   This account now has $489.18 in cash. There will be no trades in the equal weighted portfolio. The TA portfolio:  This account now has $58.62 so I will not make any trades in this account.  The Enhanced portfolio:  There is no change in allocation for this portfolio, however I am going to make a diversifying trade. I will increase exposure to KXI and reduce exposure to DSEUX. I am slowly moving this portfolio into a place where it holds only two months worth of allocations in any one security. I will sell 1/3rd of the DSEUX and buy as much KXI as possible with the proceeds and cash (which is $166.74)  on May 1, 2018.  I will post the trade details shortly thereafter. Disclaimer: Past performance is not a g

PERFORMANCE: Cumulative returns of each of the strategies as though you had invested $100,000 in them at the beginning of the blog. In March the  Equal weighted portfolio   returned -0.2%. This portfolio is my version of a buy and hold portfolio and I use it as my benchmark for the two portfolio's below.  The  TA portfolio  performed the worst, returning -2.2%. This portfolio invests in the same securities as the Equal weighted portfolio but actively allocates by adjusting how much is invested in each asset class. The  Enhanced portfolio  had the best results, returning 0.5%. This portfolio uses the allocation of the TA portfolio and seeks to enhance those returns by buying funds that access the asset class in a different way. COMMENTARY: Equal Portfolio:   This portfolio is invested about 25% in each of four asset classes ( investment grade debt ,  high yield debt ,  large cap equity  and  small cap equity ). It is the baseline or ben

MORNINGSTAR PEER RANKS: Often the most difficult test is to look at a fund against its peers. How does performance stack up against the other active managers who are trying to run a similar strategy? I went out to Morningstar and found a Tactical Allocation Peer group ( you can see it here ). These numbers will be more meaningful as my strategy gets a longer history and I can compare 1, 3 and eventually 5 year numbers. As of March 29, 2018: 1 Mo 3 Mo 1 Yr 3 Yrs 5 Yrs Equal   68%   64%   -na-   -na-   -na- TA    9%   66 %   -na-   -na-   -na- Enhanced   84%   34%   -na-   -na-   -na- # of Funds    301   301    289    236    178 Max    1.83%   4.41%  23.44%  12.32% 11.05% Min   -6.77% -13.44% -12.54% -12.54%   -9.37% COMMENTARY: The TA fund has had a very good three months. The Equal fund bounced back this month due to its more conservative holdings. The Enhanced fund has struggled a lot over the past three months. The short term metrics can jump around a lot (al

TRADES  (performed on April 2nd) : Equal Weight Portfolio: Beginning cash $325.80 No trades TA Portfolio: Beginning cash $1013.78 Bought 8 shares of VONE at $118.52 per share, $7 commission, total cost $955.16 Ending Cash $58.62 Enhanced TA Portfolio: Beginning cash $155.56 Sold 699.8221 shares of DSEUX at $11.24 per share (I put this order in to sell $7866 which is 1/4th of what I have left), $7 commission, total proceeds $7859.00 Purchased 67 shares of VONE at $118.52 per share, $7 commission, total cost $7947.84 Ending Cash $66.72 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