Tactical Allocations

I am still not sure whether or not we have hit bottom. There is a lot of potential for bad news in the coming year. One key bankruptcy or another bout of the virus could put markets back into a tail spin. That said, risk in high yield bonds is attractive at these levels and so I will be adding to that exposure. Note: The sells are approximately 1/12th of the total portfolio. The Equal portfolio:   Beginning Cash $554.73 No trades The TA portfolio: Beginning Cash $156.00 Sell 77 shares of  VONE Buy as much JNK  as possible with proceeds and cash  The Enhanced portfolio: Beginning Cash $47.48  Sell 76 shares of  VONE Buy as much  DSL  as possible with proceeds and cash Allocation Prior to trades: Large Cap Equity (VONE):     53%   Small Cap Equity (VTWO):      0%   High Yield Debt (JNK):              9%    Inv. Grade Debt (...

In Q1 2020, COVID 19 hit the world and the markets. The lack of small cap stocks was very beneficial in the TA and Enhanced portfolio's.  The portfolio's have lower risk in them than the equal weighted portfolio and this was demonstrated in this quarters returns.  During the quarter, the four asset class returns were  VONE -20.50%, VTWO -30.75%, JNK -13.08%, AGG 3.04%. Over the past 12 months returns were  VONE -9.73%, VTWO -25.03%, JNK -7.19%, AGG 8.82% Small cap stocks ( VTWO ) tend to do poorly at the end of the market cycle and during a crash. After we move through the bottom of this cycle we will begin adding them back into our portfolio as they are usually the stars during a rebound.  We added high yield ( JNK ) this month as the yields are very beneficial when equity markets are low and they tend to rebound very quickly when the market begins to heal. Performance as of March 31, 2020 was: Blog Basics: In this ...

Below are the trades made within the portfolio's on April 1st 2020 followed by a listing of the current holdings in each portfolio. Equal Weight Portfolio: Cash balance prior to trade $372.33 No trades TA Portfolio: Cash balance prior to trade $472.32 Sold 86 shares of  AGG  at $115.06 with $0.24 SEC Fee. Total proceeds $9,894.92 Bought 112 shares of  JNK  at $92.23 with $0 commission. Total cost $10,329.76 Ending cash balance of $37.48 Enhanced TA Portfolio: Cash balance prior to trade $942.91 Sold 320 shares of GOVT  at $28.14 with $0.23 SEC Fee. Total proceeds $9,004.57 Bought 2021 shares of HIX  at $4.92 with $0 commission. Total cost $9,943.32 Ending cash balance of $4.16 The Portfolios after the trades on 4/1/2020: Equal Weight Portfolio:   Cash = $372.33 VONE  = 225 Shares VTWO  = 247 Shares AGG  = 248 Shares JNK  = 264 Shares TA Portfolio: Cash = $37.48 VONE ...