With the market near an all-time high, I am altering the Strategic Asset Allocation (SAA) of the Bohr Portfolio to a more conservative plan. The big move is to reduce exposure to equities and increase the percentage in bonds. This change increased the IRR percentage of the ITA Index. Another reason for the ITA Index IRR percentage to move to a high value is that I also switched the precious metals ETF from GTU (-49.2%) to GLD (133.0%). I no longer hold shares of GTU. Even though only 3% is allocated to Precious Metals, switching from a large negative IRR to a huge positive IRR value creates a significant change in the overall Internal Rate of Return value for the customized index.
Bohr Dashboard: Here we have the new SAA for the Bohr portfolio. This puts the Bohr closer to the asset allocation alignment suggested by David Swensen in his book, Unconventional Success.
Could you please screen the ETF’s IBB, XBI, and KRE? Also, individual stocks CCJ and ATK?
David,
Ranking just the 5 Assets you list above ranks them in the order IBB, XBI, ATK, CCJ, KRE. All rank higher than SHY so would be candidates for purchase.
A Cluster analysis shows that IBB and XBI are strongly correlated (90%) with the others offering good diversification.
A Cluster Weighted Momentum analysis recommends the following allocations: IBB – 43%; ATK – 25%; CCJ – 21.7%; KRE – 10% (XBI is omitted since it is in the same cluster as IBB – if you did not want to invest 43% in IBB you could split this between IBB and XBI).
XBI and CCJ are showing strong positive acceleration (>24%), IBB is positive (7.6%) with KRE and ATK both negative (>-5%).
Hope this gives you some of the answers you are looking for.
David
Hedge Hunter: Thanks for your reply.
What do your screens say about VGPMX, Vanguard’s mostly gold miner ETF?
Correction: VGPMX is a mutual fund instead of an ETF.
Also try PSCE, a smaller cap. oil and gas ETF.
David,
This is getting too complex/detailed to answer in the comments section. Let me have your email address and I’ll send you a detailed response with screenshots.
David
Email me at w*d*d*a*v*e*n*p*o*r*t*1@gmail.com with the asterisks omitted.