March 2, 2020 Allocation

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Trades on March 2nd.

Finally there is something interesting happening in the markets, unfortunately it is not good for society.

Last week fear took over and markets went into free-fall.  While these movements are scary they are also the times when fortunes are made, and lost. Coronavirus is the main thing people were talking about last month but there was also the rise of Bernie Sanders in the Democratic primaries that also had an impact.

Typically you want to buy when markets are down but it is too early for that. The earnings impact of quarantines and the markets worry about the election will continue throughout this year. It is time to take a bit more risk off the table. If this continues to play out we will be adding risk again soon.

There is also a good amount of cash built up in the portfolio's and so that will be included in the trades and used to rebalance the equal portfolio.

The Equal portfolio: 

  • Beginning Cash $1,566.63
  • Buy as much VTWO as possible with cash
The TA portfolio:

  • Beginning Cash $1,298.65
  • Sell 78 shares of VONE
  • Buy as much AGG as possible with proceeds and cash 
The Enhanced portfolio:

  • Beginning Cash $974.83 
  • Sell 86 shares (half) of DVY
  • Buy as much AGG as possible with proceeds and cash

Current Allocation (prior to trades):
  • Large Cap Equity (VONE):    67%  
  • Small Cap Equity (VTWO):     0%  
  • High Yield Debt (JNK):             0%   
  • Inv. Grade Debt (AGG):          33%  
Equal Weight Portfolio: 

VONE = 225 Shares
VTWO = 234 Shares
AGG = 248 Shares
JNK = 264 Shares

TA Portfolio:

VONE = 622 Shares
AGG = 372 Shares

Enhanced TA Portfolio:

VONE = 378 Shares
IEMG = 158 Shares
DVY = 172 Shares
AGG = 96 Shares
GOVT =  1055 Shares

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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