To answer Robert’s question about advice for a new investor beginning a portfolio, here are my recommendations for someone following the Tranche Momentum Model.
Kipling Tranche Recommendations: Looking at the following tranche worksheet, I would concentrate my new investments in TLT for several reasons.
- Pay closest attention to current recommendations or recommendations coming in the first or second offset portfolios. That leaves us with BIV, TLT, and PCY.
- BIV has two warning flags flying and they are: 1) Negative “Golden Cross” and 2) Negative absolute acceleration percentage.
- TLT is my favorite ETF from this group.
- PCY is loaded with negative flags so I am not going to be buying this ETF.
This is a time to be patient unless one wishes to bottom fish and one ETF I am looking at is Vanguard Energy (VDE). A limit order somewhere under $30.00/sh is my thinking.