Tactical Allocations

Trades made within the portfolio's on October 4th 2019 followed by a listing of the current holdings in each portfolio. Equal Weight Portfolio: Cash balance prior to trade $1,145.36 Bought 10 shares of JNK at $107.60 with no commission (There are now many options with $0 commision i.e. TD Ameritrade, Schwab, Robinhood). Total cost $1,076.00. Ending cash balance $69.36 TA Portfolio: Cash balance prior to trade $141.09 Sold 78 shares of  VONE  at $133.82 with $0.20 SEC Fee. Total proceeds $10,437.76. Bought 93 shares of  AGG  at $113.75 with $0 commission. Total cost $10,578.75. Ending cash balance of $0.10 Enhanced TA Portfolio: Cash balance prior to trade $361.35 Sold 76 shares of VONE at $133.82 with $0.20 SEC Fee. Total proceeds $10,170.12. Bought 396 shares of GOVT at $26.55 with $0 commission. Total cost $10,513.80. Ending cash balance of $17.67 The Portfolios as of 10/4/2019: Equal Weight Portfolio:   Cash = $69...

In the third quarter we have continued to see prices increase, however the pace has slowed. In the TA portfolio , the decision to focus on large cap stocks was very beneficial in Q3.  VONE was up 0.98% while the small cap VTWO was down 2.61%.  Investment grade bonds were the top performer during the quarter returning 1.63%. Lower quality bonds JNK were down 0.18%. It is typical in the late cycle of an economic expansion for large cap stocks to continue performing while small cap show early signs of market stress. In the Enhanced portfolio ,  GOVT returned 1.96% which outperformed the AGG by 0.33.  DVY returned 2.4% which outperformed VONE by 1.42%. Both of these contributed to the Enhanced portfolios strong results. Emerging markets continued to suffer and IEMG lost 4.70% which trailed VONE by 5.68%. Right now the poor performance of small cap stocks and low quality bonds in recent months is a strong signal to increase safety in the portfolio. Stati...

Market Undercurrents: There are some very disturbing things happening right now in the financial markets that are not getting a lot of press. Because of this and a substantial change in some of the metrics I look at in the past two days, I am going to increase the allocation to fixed income with a late trade again this month. First the Trades: The Equal portfolio:   The equal account has $1145.36 so I will buy JNK with that money. The TA portfolio:  I will sell 78 shares of VONE and buy as much AGG as I can. The Enhanced portfolio:   I will sell 76 shares of  VONE  and buy as much  GOVT  as I can. Now the Reason: The money markets are in distress but no one is talking about it.  Basically there is a shortage of cash which is showing itself in something called the "repo" market. In the repo market, borrowers seeking cash offer lenders collateral in the form of safe securities—frequently Treasury bonds—in exchange for a s...

No Trades on Oct 1st. The Equal portfolio:   No trades. The TA portfolio:  No Trades. The Enhanced portfolio:   No Trades. Current Allocation: Large Cap Equity (VONE):     75%   Small Cap Equity (VTWO):      0%   High Yield Debt (JNK):              0%    Inv. Grade Debt (AGG):           25%   Equal Weight Portfolio:   VONE  = 225 Shares VTWO  = 234 Shares AGG  = 248 Shares JNK  = 254 Shares TA Portfolio: VONE   = 700 Shares AGG  = 279 Shares Enhanced TA Portfolio: VONE  = 454 Shares IEMG  = 158 Shares DVY  = 172 Shares AGG  = 96 Shares GOVT  =  659 Shares Disclaimer: Past performance is not a guarantee of future performance.  This strategy is presented for informational purposes only and is not a solicitation ...