Markets continue to provide minimal returns as witnessed by my TAA model and the global 60/40 portfolio which are both little changed from last October. Seasoned investors realize that portfolio returns are usually lumpy and that makes it challenging for some people...
If you think that the market commentary you read was written by a person, you aren't paying attention. I used ChatGPT to write the following three paragraphs. Last week, the U.S. stock markets showed a mixed performance, with the Dow Jones Industrial Average and the...
Short-term treasuries continue to be the investment of choice for my dynamic asset allocation models as they collectively have a 62% allocation to BIL. My Dynamic Asset Model Allocations
3-month Treasuries are currently yielding 4.89. Most equity ETFs are experiencing negative momentum as I measure it. The net result is that my models currently have a very high allocation to short-term treasuries and a very low allocation to equities. The chart of the...
February has lived up to its reputation as a difficult month for investors. The grind lower in recent weeks has led to my models becoming very cautious as they now have 61% allocated to cash and very short-term treasuries via the BIL ETF.
February 17 Texas Instruments (TXN) - $160.00 Puts Expired The puts that I sold on January 30 expired worthless thereby generating a 9.6% annualized return on the trade. My Tactical Asset Allocation Model The models I use have an increased allocation to...
As far as FinTwit is concerned, some bull markets may have just started. On January 12, Walter Deemer posted on Twitter "The stock market generated Breakaway Momentum today for the 25th time since 1945" which he later followed with "And as icing on the cake, we also...
January 05 Energy Sector SPDR (XLE) - Sold Covered Calls I sold Jan-20 $91.00 covered calls for $0.43. January 06 My Jan-06 $397.00 SPY calls expired out of the money so I kept my shares. General Motors (GM) - Sold Jan-20 $33.00 Puts My Tactical...
My 2022 Tactical Asset Allocation Performance My TAA model finished the year down 8.3% compared to a loss of 16.6% for the 60/40 portfolio. Compared to the average of seven Tactical Asset Allocation ETFs, my model fared well in 2022. Combined, the seven ETFs have...
When I look at the chart above, I like the much smoother equity curve of my model versus the traditional 60/40 of the professionally managed Horizons Resolve Adaptive Asset Allocation ETF. In the period covering just over one year, my model and HRAA arrived at the...