Dual Momentum (DM) portfolios are a piece-of-cake to analyze, particularly in months where there are no changes. Such is the case with the Galileo this September. Check out the recommendation below and see if it matches your DM portfolio recommendation.
Galileo Dual Momentum Recommendation
The Galileo investment quiver includes a few ETFs and/or asset classes not found in the basic Gary Antonacci DM portfolios. U.S. Equities (SPTM), International Equities (SPDW), and U.S. Aggregate Bonds (SPAB) are the three fundamental asset classes. One could stop right there. I’ve added two treasuries [SHY and SPTL] to provide alternatives to the bond (SPAB) ETF as there are times when the treasury ETFs provide additional resistance to downward market movement.
In addition, I also include a short ETF (SH) for dire times such as we experienced in 2008. If I were to trim one ETF out of the quiver, it would be SH. Be very careful when using this short ETF. Short simply means we are betting against the market. The SH ETF is designed to move in the opposite direction of the S&P 500.
Galileo Performance Data
During the Month of August the Galileo rose over 10%. This recent rise is the primary reason the Internal Rate of Return (IRR) of the Galileo is outperforming, albeit slightly, the VTHRX benchmark with a Time-Weighted Annualized Return of 7.5%. The red arrow points to the annualized return of the VTHRX benchmark while the black arrow points to the IRR of the Galileo portfolio.
This data runs from 4/30/2017 through 9/6/2019. The Galileo now goes into “neglect” mode for another 33 days.
Here is what the Galileo looked like in the last review.