Fantasy Gardens, Koh Samui, Thailand
The Dirac Portfolio is currently holding positions in seven of the ten sector ETFs in the portfolio quiver, but the allocations are not equally weighted as per my rules/objectives for this portfolio.
Checking the analysis sheet we see the following picture:
with Buy or Hold recommendations for all but XLF (Financials). New Buy signals have been generated for XLK (Momentum Buy) and XLC (Mean Reversion Buy).
I have therefore added positions in XLC and XLK and (almost) balanced the allocations:
XLY is slightly under equal allocation and XLV is slightly over-allocated (due to the “Hold” recommendation on XLV) – but allocations are not significantly out-of-balance to justify the cost of adjustment.
Taking a look at the new additions:
XLK has just turned positive for both momentum and acceleration with XLC showing the same – but, maybe, with more conviction.
Performance of the Portfolio to date is looking like this:
and nicely staying ahead of the benchmark SPY Fund.
Now that the portfolio is balanced, and holding nine of the ten ETFs in the quiver, we may not expect to see significant differences from the performance of the Portfolio to that of the broader SPY benchmark.
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David,
Very interesting analysis of the sectors. I am curious however why you don’t include a Reit. Stock Charts uses XLRE but I preferer VNQ.
Bob P.,
Hedgehunter is taking a few weeks off for vacation so he may not reply as quickly as usual.
Lowell
The answer is quite simple (and stupid) – my spreadsheet is only setup to handle ten assets in the quiver 🤔.
I considered expanding it but chose not to for 2 reasons:
1. Because I’ve chosen to try to stay equally weighted and fully invested, if the number of recommended Buy’s and Holds changes then this results in a lot of trade adjustments – and even 10 assets in the quiver is maybe too many.
2. I am holding REITs in other portfolios so I could always add more shares there. REITs were also originally part of the Financial sector (XLF) so there is some level of correlation there.
Those are my poor excuses for being lazy Bob 😂
You’re not lazy by any stretch. Thanks for sharing your hard work and enjoy some vacation time.
Bob
I have sold my holdings in XLY (Consumer Discretionary) and am watching XLK (Technology) for another possible sell. To avoid a lot of trading I am holding the funds, generated through the sales, in Cash (or BIL) and will adjust to equal, fully invested, allocations maybe monthly or when it looks as though there may be no new recommendations in the analysis sheet.
I have sold my position in XLK and am holding the proceeds of sales in BIL.