December 31, 2018 Allocation

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January Allocation:

On December 6th, 3 trading days after my last allocation update, the signal changed. It then said to take the portfolio a bit more conservative. I wish that had changed a few days earlier so some of the portfolio would have been protected from December's steep decline. As it is, the conservative signal is still there so for the first time in quite a while we have a change to the portfolios.

Trades will take place on January 1st.
  • Large Cap Equity (VONE):    92%  
  • Small Cap Equity (VTWO):     0%  
  • High Yield Debt (JNK):             0%   
  • Inv. Grade Debt (AGG):            8%  

The Equal portfolio: The cash balance is over $1000 so we will make some trades to put it to work.  Current allocations only have 24% in Small Cap Equity and Junk Bonds so we will be buying an equal dollar amount of Small Cap Equity (ticker VTWO) and Junk bonds (ticker JNK).

The TA portfolio: I will sell 1/12th of the VONE in the portfolio and use that and the cash in the account to buy AGG. 

The Enhanced portfolio: The purchase I made one year ago was JXI.  I am not going to sell that, but rather will sell half of the KXI in the portfolio and will buy GOVT with the proceeds and cash that has accumulated in the account. The allocation of KXI that I am selling has been held in the portfolio for 18 months - I did not sell it when it hit its 12 month period. GOVT is similar to AGG except it only holds Government Treasuries. It does not hold corporate or mortgage backed debt. If things continue to deteriorate it will hold up better because it is focused on the highest quality lenders.

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. I own all of the securities suggested in all three portfolio's.  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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