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Richard Russell ... Keep An Eye on May's Stock Market Peaks
Thanks for the link. When dealing with Bear (markets) there are usually two outcomes...sometimes you eat the bear...sometimes the bear eats you.
I have been watching EDV and its valuation as it often moves opposite the market (VTI). EDV is at a very high relative level to its historic valuation. A combination of these two EFTs seems like a good way to position a portfolio for both recessionary and inflationary environments. The percentage of each seems to be "secret sauce". You seem to have a very good radar for such things...thanks for your commentary.
You have come up with some good mechanisms that seem to provide you with meaningful information as an aid to reconfigure your portfolio and reposition it from time to time. I think this is important as an investor develops skill.
I have shared over time a few mechanisms that I use myself. Interstingly, my systems, were showing utilities were overbought and materials, energy and commodities were oversold a month or so ago. And, sure enough about a month later utilities are retreating and the others I just mentioned have had some nice upward gains.
For the past running thirty days, utilities are up about 2.0%, materials are up about 3.3%, energy is up about 9.4% and diversified commodities are up about 7.4%. So, it has been beneficial from me, thus far, to have reduced my allocation to utilities and raise them to these other sectors.
I feel investors that are willing to devote a little time and develope some mechanisms that are capable of providing beneficial information that they can govern off of could improve the performance of their portfolio simply by moving around about 10% to 20% of the assets within their portfolio. I call these flux assets that I move around, ballast. I try to keep this ballast in the faster market currents wheather it be cash, fixed income, equities and or other type of assets such as commodities ... or a combination of them.
I have linked one of the sites below that I have often used in the past to provided me with information to help me position this ballast within my portfolio. Now, I still reference Ron Rowland's Leadership strategy site; but, I am now using my own systems more and more as I gain confidence in them.
For those interested here is the link to his site.
Thanks bee for stopping by and making a comment on my post. It is indeed appreciated. I wish you the very best with your own investing endeavors ... and, thanks again for sharing your mechanisms. Perhaps, some will find favor in them.
Comments
Thanks for the link. When dealing with Bear (markets) there are usually two outcomes...sometimes you eat the bear...sometimes the bear eats you.
I have been watching EDV and its valuation as it often moves opposite the market (VTI). EDV is at a very high relative level to its historic valuation. A combination of these two EFTs seems like a good way to position a portfolio for both recessionary and inflationary environments. The percentage of each seems to be "secret sauce". You seem to have a very good radar for such things...thanks for your commentary.
Here is EDV charted against VTI:
http://screencast.com/t/DHYvv2Cb
Link to the M* settings (need to add VTI to compare):
http://quote.morningstar.com/ETF/chart.aspx?t=EDV®ion=USA&culture=en-us
On the "YTD" setting the two have been battling it out since May 18th...maybe its an election year thing.
You have come up with some good mechanisms that seem to provide you with meaningful information as an aid to reconfigure your portfolio and reposition it from time to time. I think this is important as an investor develops skill.
I have shared over time a few mechanisms that I use myself. Interstingly, my systems, were showing utilities were overbought and materials, energy and commodities were oversold a month or so ago. And, sure enough about a month later utilities are retreating and the others I just mentioned have had some nice upward gains.
For the past running thirty days, utilities are up about 2.0%, materials are up about 3.3%, energy is up about 9.4% and diversified commodities are up about 7.4%. So, it has been beneficial from me, thus far, to have reduced my allocation to utilities and raise them to these other sectors.
I feel investors that are willing to devote a little time and develope some mechanisms that are capable of providing beneficial information that they can govern off of could improve the performance of their portfolio simply by moving around about 10% to 20% of the assets within their portfolio. I call these flux assets that I move around, ballast. I try to keep this ballast in the faster market currents wheather it be cash, fixed income, equities and or other type of assets such as commodities ... or a combination of them.
I have linked one of the sites below that I have often used in the past to provided me with information to help me position this ballast within my portfolio. Now, I still reference Ron Rowland's Leadership strategy site; but, I am now using my own systems more and more as I gain confidence in them.
For those interested here is the link to his site.
http://investwithanedge.com/leadership-strategy
Thanks bee for stopping by and making a comment on my post. It is indeed appreciated. I wish you the very best with your own investing endeavors ... and, thanks again for sharing your mechanisms. Perhaps, some will find favor in them.
Best regards,
Skeeter