The perfect portfolio_ with 2 tickers _ seeking alpha

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This should be a very quick article. Us to euro exchange rate Though surprisingly it took me quite a long time to discover just how simple things can be. Cnbc pre market futures Most of us want some great returns but do not want to take on the greatest risk to get those returns. Gbp usd exchange rate forecast What if we could have our total return cake and eat it too?

In the search for the ‘best’ dividend growth portfolio I “discovered” this simple approach that I kept uncovering what is hard to beat for risk adjusted returns.


Gender roles in india I will get to the ultimate dividend growth portfolio in a future article. Love quotes for husband OK, OK. Exchange rate hkd usd On to the Perfect Portfolio.

The growth engine is the simple equal weighted version of the S&P 500 available in ETF form by way of Guggenheim S&P 500 Equal Weight ETF (NYSEARCA: RSP). Stock market terms and meanings As you may know, the equal weighted version of the S&P 500 has a habit of outperforming the more popular cap weighted version of the S&P 500 available in ETF form by way of Vanguard 500 Index Fund (NYSEARCA: VOO) and SPDR S&P 500 (NYSEARCA: SPY). Gold prices today per ounce Seeking Alpha author Ploutos has done many wonderful articles on simple market beating strategies, including the equal weighting phenomenon. Euro pound chart In this article, Ploutos shows …

The number of professional money managers who have beat that venerable US equity benchmark by well over 2% annualized would be a small list, and likely mathematically zero.

I don’t think there are any documented cases of a retail investor beating the S&P 500 by 2% annual. Hidden messages in songs If you can find any, please post them in the comment section. Usd to can The equal weight S&P 500 is the true benchmark for a US large cap investors, as one does not have to cap weight their holdings, they can use their talent to direct monies to their best ideas. Market futures oil Any investor with true talent will beat RSP, meaning they will have to beat the VOOs and SPYs of the world by 3% or 4% annual to demonstrate any ability.

Net, net, that’s a very good growth engine that most of us think of as an investment that carries greater risk than the cap weighted S&P 500. Equity meaning in hindi But here’s SPY vs RSP over the last 10 years. Call and put options examples The period is January of 2007 through to end of December 2016, courtesy of portfoliovisualizer.com. Eur usd chart live The results are total returns and do include dividend reinvestment. Gender theory Portfolio 1 is RSP, Portfolio 2 is SPY.

Yes there is greater standard deviation and there was a greater maximum drawdown in the recession, but hey, if you can handle a 50% portfolio correction, you can likely handle another 5%? Either way, that would be an investor with a very high risk tolerance level.

The ballast or balance for the Perfect Portfolio will be offered by way of longer term Treasuries. Call option vs put option As I have written and repeated extensively long term Treasuries (NYSEARCA: TLT) have historically offered a wonderful low correlation and at times (when most needed) negative correlation to equity markets. 500 kroner to usd Stock markets tank, long term bonds typically go up in price. How to convert inr to usd Perhaps long term Treasuries offer one of the best options for ‘market insurance’. Funny jokes and riddles Ironically the bonds that appear to offer the greatest price risk in isolation, offer the best portfolio ballast when combined with equities in those balanced portfolios. Convert fraction to mixed number calculator Given the price risks and that long term treasuries offer greater inverse relationship compared to a broad based bond index (NYSEARCA: AGG), one does not need a large position in those longer term bonds. Aud usd chart Long term treasuries punch above their weight when it comes to providing portfolio ballast. Fundamentals of futures and options markets pdf free download After running way too many test, I’ve found that 20% is ‘enough’. Usa today crossword And by only requiring 20% one can leave 80% in that greater growth engine. Oil meaning The fact that they have been historically inversely related when required creates a rebalancing opportunity. Cnn futures pre market If we enter an event when stocks are getting crushed and the bonds are going up in price, we have the opportunity to trim from the bonds and buy the stocks while they are going down in price, and perhaps offering greater dividend yields and greater earnings yields.

Investors might also consider international diversification. Future trends in marketing US investors might be wise to remember the lost decade when the S&P 500 had negative real returns from 2000 through to the end of 2009. British pound to us dollar rate During that period Canadian and international equities did quite well. Dow jones stock futures live That international diversification can also help to hedge currency risks. Binary file editor Here’s SPY vs the Canadian equity market (NYSEARCA: EWC) from January of 2000 to December 31, 2009. Eur usd live That’s Canada EWC Portfolio 2 in red of course, and the US Portfolio 1 in blue.

And yes, I know the above strategy is not new. Stock outperform Many have suggested using higher alpha equity sectors with longer dated bonds. Usd rmb conversion I simply think this Perfect Portfolio hits an investable sweet spot.

I wrote this article myself, and it expresses my own opinions. Texas baseball I am not receiving compensation for it (other than from Seeking Alpha). Binary chart I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Dale Roberts is an Investment Funds Advisor at Tangerine Investment Funds Limited a subsidiary of Tangerine Bank, wholly owned by Scotia Bank; he is not licensed to provide professional advice on stocks. Binary search algorithm The opinions expressed herein are Dale Roberts’ personal opinions relating to his experience as an investor and are not those of Tangerine Bank or its subsidiaries and/or affiliates. Love quotes for him This article is for information purposes only and does not constitute investment advice or an offer or the solicitation of an offer to buy or sell any securities. Convert usd to rupees Past performance is not a guarantee and may not be repeated. Usd euro rate Investment strategies are not suitable for everyone and you should always conduct your own research or speak to a financial advisor.


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