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  • #80523

    Wondering why the core portfolios are holding such a large amount of gold. Its huge drag on the account.


    The last ~3 months have not been good for UISx3.

    Mark Vincent

    The second half of 2016 GLD and TLT were both down. Let’s hope the trend reverses over the next couple of months going into 2021.


    It is normal for hedged strategies that a part of the assets go down when others go up. This reduces the volatility (risk). Year to date gold was by far the best asset followed by treasuries and equity. For most investors, equity performance is still the benchmark and they feel bad if they partly miss an equities rally, but long term it is more important not to lose your profits during the next market corrections. You can be sure the next correction will come and then Treasuries and gold will probably again safe your portfolio as it did during the march corona crash.


    Thanks Frank for the rationale and feedback.

    While Logical Invest uses a monthly cadence to rebalance, have there been times when making intra-month adjustments, or non-monthly off-cycle adjustments, would make sense? If there were cases where this would drive improved performance (for UISx3, for example), would Logical Invest adapt the cadence accordingly? Thanks!


    Shorter rebalancing periods reduce the performance of most strategies as you begin to rebalance for short term corrections which are mostly just random noise. This means that you sell low and buy high and miss the normal rebound after such fluctuations.


    Thanks frank.

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