The Kahneman-Tversky Portfolio is a simple Dual Momentum Portfolio that requires few adjutments since it only has a choice of holding one of 3 assets. Here’s where the portfolio is sitting at present:
Checking the slower moving Kahneman portion of the portfolio that uses a single 252-day (12 month) lookback to measure momentum, the rotation graphs look like this:
VEU is clearly the leader long-term (furthest to right) and is also showing short-term strength (moving up), so it is not surprising to see the recommendation:
and, since we are already holding this ETF no changes are called for.
Moving to the faster moving Tversky portion of the portfolio, that uses the shorter-term 60- and 100-day lookback periods to measure momentum, we see the following rotation graphs:
with VTI leading the longer term strength and short-term weakness in all ETFs. However, the recommendation:
is to hold on to the position in VTI that we currently hold.
No adjustments are necessary based on this month’s review.