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

Tactical Asset Allocation (TAA) Monthly Feature - September 2012

Tactical Asset Allocation (TAA) Monthly Feature - September 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 /]

It's been 12 full months now that I've freely shared this sample Tactical Asset Allocation model on my blog, and I'm happy to report the model has done just as it was designed for - produced a steady return in spite of market conditions that have been anything but steady.  The first 12 months return is nothing to scream from the mountain tops about, but with a steady 5% gain over a rather tumultuous time frame, it's also not too shabby.

August was a slow but steady month for the model, producing a gain of 0.59%.

The model still has no gold, which has served it well the past few months, though gold is now starting to pick up a bit.  I wouldn't be surprised if the model picks up on this and begins allocating lightly back into the yellow metal.  For September the model is not changing much at all.  It will still emphasize bonds and real estate, but continues to keep a modest allocation towards stocks.

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:

[table id=5 /]

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

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