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(Much) Faster Than Email
Checking email is always the last thing I do, so if you need to get a hold of me, please
- send an iMessage to firstname.lastname@example.org (with TWO letters “y” at the end);
- find me under username teresalo on the free Voxer app; or,
- call or send a text to +1 (206) 331-4566 (USA) or +1 (778) 837-5144 (Canada).
Performance at a Glance
Some quick goodies, so we can easily keep tabs on our investments. Scroll to the very bottom of this page to learn more about the tables listed below.
NOTE: The tables do not always load instantly. If you’re on a mobile phone, landscape mode is probably better.
Model Investment Portfolios
The table below features the numbers we want to know for each of the model investment portfolios. Note: dividends are EXCLUDED for all except TSP models.
U.S. Dollar Asset Classes
The table below lists funds that represent the foundational building blocks (asset classes) of our various U.S. Dollar model investment portfolios, plus a few more.
Canadian Dollar Asset Classes
The table below lists funds that represent the foundational building blocks (asset classes) of our various Canadian Dollar model investment portfolios, plus a few more.
Select Sector SPDRs
The table below is the list of Select Sector SPDR funds, eleven ETFs that contain all 500 of the constituent stocks in the S&P 500 Index. SPY (S&P 500 ETF) is included for perspective. To find out which sectors are leading or lagging against the S&P 500 Index, check out the sector rotation data and chart, updated weekly..
All U.S. Dollar Ticker Symbols
Ranking asset classes and S&P sectors is obviously comparing apples to oranges, but since someone will want to know, here it is.
How to Use These Tables
Let’s take a look at this sample table, column by column.
- Date: Either today’s date or month-end date.
- RRR Sparkline Chart: The reward-to-risk (RRR) sparkline chart contains information that can help us select which model investment portfolio (or stock or sector) go to with. Risk (volatility) is worth taking when the reward (return) is greater. Our 12-month reward-to-risk ratio (RRR) is based on M2 by Franco and Leah Modigliani. We have found that when RRR rises above zero after having been below it for a while, it is worth looking into as a buy (stock) or a switch (to a different model). Any time the pink bars (more risk than reward) show up, an aggressive strategy calls for rotating to another model (or stock or sector).
- Funky Chicken: We came across an interesting research finding that market participants start twitching on a 2 standard deviation move downwards. In this example, if the S&P 500 Index moves down 10.97% from here, we can expect them to dance the funky chicken.
- Equity: All model investment portfolios now begin on 12/31/2003. This number is the growth of $10,000 before dividends. Why? There is reason to pay for good investment models, but if the “performance” includes dividends (which takes zero effort to grab), then it’s difficult to determine the efficiency of a given strategy. When dividends are included and compounded with returns (“total return”), then the dollar figure for the investment portfolios would be much higher. The exceptions are the Thrift Savings Plans funds, which the government reports with dividends.
- Cash: No more guessing or need to “do half.” Percentage is now calculated for each portfolio. This first one is based on a conservative volatility estimate. It is a tad slow to increase cash, but quick to deploy cash. I’ve capped it so that the lowest amount of cash held is zero. In this example, someone who owns the S&P 500 Index (an ETF such as SPY) and nothing else should now be holding 28% cash.
- levCash: This number gives us an idea how much margin debt professional managers might be using to leverage their portfolios (to 10% volatility); however, I strongly suggest you not use margin (borrowed funds) to maximize buying power. This percentage is calculated based on (realized volatility) a more standard volatility estimate. It is fast to increase cash, but slow to deploy cash. As an example, if you own S&P 500 using an ETF such as SPY and nothing else, you should now be holding 45% cash. The lowest amount of cash held is not capped. As an example, the CA$ Core 4 is showing -111%, meaning 100% of cash is invested along with another 111% borrowed money – in theory.
IMPORTANT: Once the Cash or levCash percent starts to go up, it will not go down again during that same month; therefore, when market volatility increases during the month, we can raise cash accordingly during the month. There is no need to wait until month-end.
Risk-Adjusted Performance and Leverage
Leah Modigliani explains it better than I can, so have a go.
OK, you’re all set! The rest of the content is listed below (on mobile) or on the sidebar (on computers).