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

Tactical Asset Allocation (TAA) Monthly Feature - October 2012

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

This post is coming a few days later than normal as I've spent the past week chaperoning a 6th grade Science camp for my son.  It was fun, but tiring - and I'd recommend anyone contemplating spending a week with 250+ 6th graders really think that decision through before committing ;).  Exhausting!!!

September was another slow but steady month for the model, producing a meager gain of 0.2%.

From an allocation perspective though, there where some pretty big changes back on October 1.  After a 6 month hiatus from owning Gold, the model has shifted 9% into it.  To create this allocation the model backed off from bonds a bit, as well as real estate.  The end result is a very balanced (yet still a bit conservative) portfolio for the month of October.

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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