Follow My Covered Call and Naked Put Trade Strategies

Asset Class Allocations

The asset allocation models I use collectively increased the cash holding slightly to 72.8%. Whatever happens to the markets in the near term, my portfolio’s performance will be rather muted due to such a high allocation to cash.

The average year-to-date return for the asset allocation models I use is currently -1.9%.

 
The average year-to-date performance of my asset allocation models is -1.3% versus -12.5% for the 60/40 portfolio. Over time, my models don’t significantly outperform the 60/40 portfolio but they do have much lower drawdowns which is important to me. Many investing strategies are difficult to stick with in times of poor performance and I know that I am more likely to stick with the models I use because of the relatively low drawdowns.

I currently own no US stocks. My stock selection strategies have not been working in the current environment so I am reluctant to purchase stocks until I see an improvement in my strategies. I do track the 30-day performance of stocks selected by my strategies and will continue to monitor that as one way of determining when to begin buying stocks again.