April 1, 2020 Allocation

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Trades on April 1st:

What a month! I have posted a couple of articles to help people in thinking about the incredibly fast drop in markets that happened in early March.  We have quickly moved to a place where it makes sense to begin adding risk again.  Usually this takes a few months but in this case we have gotten there in one.

This is not me saying I think we have hit bottom.  I have done this long enough to know that calling the bottom is impossible. This is me saying that at the current prices, risk is well compensated and we should be adding risk to the portfolios.

Note: The sells are 1/12th of the total portfolio.

The Equal portfolio: 
  • Beginning Cash $372.33
  • No trades
The TA portfolio:
  • Beginning Cash $472.32
  • Sell 86 shares of AGG
  • Buy as much JNK as possible with proceeds and cash 
The Enhanced portfolio:
  • Beginning Cash $942.91 
  • Sell 320 shares of GOVT
  • Buy as much HIX as possible with proceeds and cash

Current Allocation (prior to trades):
  • Large Cap Equity (VONE):    53%  
  • Small Cap Equity (VTWO):     0%  
  • High Yield Debt (JNK):             0%   
  • Inv. Grade Debt (AGG):          47%  
Equal Weight Portfolio: 

VONE = 225 Shares
VTWO = 247 Shares
AGG = 248 Shares
JNK = 264 Shares

TA Portfolio:

VONE = 544 Shares
AGG = 476 Shares

Enhanced TA Portfolio:

VONE = 378 Shares
IEMG = 158 Shares
DVY = 86 Shares
AGG = 174 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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