Fintech executive, writer, math geek, and investment systems developer. Founder and CEO of Altruist and Founder of FormulaFolios.

Tactical Asset Allocation Monthly Feature - July 2012

Tactical Asset Allocation Monthly Feature - July 2012

Below are the most up to date allocations for the Tactical Asset Allocation model I've written about on the blog.  For those needing a refresher on what TAA is and why I think it's important as part of an investment plan just click here to revisit the first post. [table id=6 /]

In the 10 months I've freely shared this model on my blog it has proven to provide a balanced way to achieve growth, while also managing the risk of April/May/June also.

June was a great month for the model with Real Estate leading the way.  Having a modest exposure to stocks and a hefty dose of bonds muted the early month volatility.

The model still has no gold, which has served it well the past few months.  For July the model is not changing significantly, but is taking some of the bonds off the table and adding to stocks.  All in all the model will be nicely balanced for July with adequate risk aversion while still having enough growth exposure that should stock and real estate move higher - so too should the overall allocation.

Since the model I share here is "balanced" keep in mind it always keeps at least 50% of the portfolio in either bonds or cash.  The whole idea of this balanced tactical asset allocation (TAA) approach is to keep a highly diversified portfolio that can get through the markets major ups and downs without the dizzying volatility of just growth investments.  It's not perfect, but so far so good.

For those that want to track the performance of this model here's the most up to date info:

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I've also added some long term metrics on return and risk here (complete with data going back to 1997):

[table id=9 /]

To see how performance is measured just check out the static page on TAA here.

As mentioned in past posts I'll update this model/strategy each month roughly 1 week into each new month.  This way scalpers can't just steal the research as their own and other financial professionals can't simply use the research to manage their clients money.

If you like what you see here feel free to pass this on to others via email, use the Facebook icon below to share it there, or just suggest in personally to a friend.

Thanks for checking out this post and have a great day.


Jason Wenk

Market Update - July 11, 2012

Market Update - July 11, 2012

Independence Day