Galileo is the Dual Momentum portfolio up for review this morning. No changes are recommended as readers will see in a moment. Due to a tie some months ago, two (2) shares of VEU remain in the Galileo. These two shares are not worth selling so I’ll leave them in the portfolio until VEU is first recommended for purchase and later sold when the recommendation comes up with a second change.
For comparison as to what was going on in April, check out this blog post.
Galileo Dual Momentum Recommendation
Using the DM model and one asset, the recommendation is to continue to hold 100% of the portfolio in U.S. Equities or VTI. Therefore, no changes are in store for the Galileo.
Note that I am using the default look-back combination of 60- and 100-trading days. See black arrow. The red arrow identifies the investing model used.
Galileo Performance Data
The following data runs from 7/31/2019 through mid-morning of 6/1/2021. The July starting date is when the youngest ITA portfolio was launched so this allows me to normalize the performance data. As you can see below, the Galileo is outpacing the VTHRX benchmark. Now we need to see how well the Galileo is performing based on the risk taken to achieve these results.
The last screenshot shows the Galileo performance since inception.
Galileo Risk Ratio
Don’t pay much attention to the June data as it only includes a part of one day. Rather, check out the May information.
The May and June data is based on the Common Launch Date. Pay most attention to Jensen’s Alpha and the slope (0.88) of the Jensen curve.
Jensen’s Alpha is also known as Jensen’s Performance Index.
Galileo Performance Since Launch
The following performance data runs from 4/30/2017 through mid-morning of 1 June 2021 or a little over four years of information. The strong performance is partially due to moving into cash as the Covid-19 Crash played havoc with stocks. We avoided most of the Covid-19 Crash with the Galileo.
For new readers, I recommend breaking the family portfolio into different investing models. The Schrodinger is one option and the Dual Momentum model, as demonstrated with the Galileo, is another option.