Sundial Bridge – Redding, California
McClintock and Pauling are the two remaining portfolio managed using the Dual Momentum™ model. Since the last McClintock review I moved the look-back period back to the “default” settings of 60- and 100-trading days. This information shows up in the first screenshot below. Check the red arrow.
McClintock Dual Momentum Recommendation
Using the “default” look-back combination, the current recommendation is to place 100% of the portfolio in U.S. Equities. While I have ESGV as the ETF of choice, other options are: SPY, VTI, and VOO.
After the market opens I plan to sell all shares of SHY and VEU and invest in ESGV. Since VOO holds many of the same stocks as ESGV, I will hang on to those five (5) shares.
McClintock Performance Data
We are now into the 18th month of this DM data and the McClintock is maintaining a slight lead over the S&P 500 (SPY) despite holding nearly half the portfolio in cash. That is the good news. As readers will see in the Risk Ratios section, the risk involved with the McClintock is much too high.
McClintock Risk Ratios
The Dual Momentum model is on a short leash. I am giving the model another six months of operation and the goal is to turn the Jensen positive over that period. Despite hold so much cash the risk of the portfolio is too high.
McClintock Portfolio Review: 10 June 2022
Discover more from ITA Wealth Management
Subscribe to get the latest posts sent to your email.
All shares of SHY were sold and a limit order is in place to sell all shares of VEU. One limit order was struck for ESGV and several more limit orders are in place at different price levels.
Lowell