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  • Frank Grossmann
    Post count: 174

    Here is a proposal how you could allocate your assets. It is how I have allocated my own money. You can change this numbers depending on your risk appetite.

    20% Global Market Rotation Strategy GMRS
    I consider this as the core investment strategy because the 5 global markets together represent well the total world stock market. I would reduce this 20% allocation and increase GSRS allocation if the strategy switches to smaller volatile markets like Latin America.

    20% to the low volatility Global Sector Rotation Strategy GSRS with 10% for each of the two sector ETFs
    This is a good diversification to the GMRS strategy. This strategy invests in long lasting global trends like solar and wind energy. These trends are normally not too much correlated to the stock market which makes it a good diversification.

    20% Maximum Yield Strategy MYRS
    This strategy is a little bit more specialized as it gets most of its return from the investment in inverse volatility. As long as the VIX Futures market is in steep contango you will earn about 3% roll yield per month. I use this strategy for inverse volatility exposure and not GMRSE

    40% Bond Rotation Strategy
    This is a very safe strategy with low volatility or risk. The return is smaller than for the other strategies, but the Return to Risk ratio is very high.

  • Michael Cave
    Post count: 8

    Frank… How would you incorporate the new UIS strategy into this?

    • Alexander Horn
      Post count: 401


      the UIS is also rather a core strategy, so you might use 20% of the Bond Rotation Allocation for it. You will see this nicely balances the whole portfolio and lowers volatility while increasing the overall Sharpe.

      Here how this would look like in the 2008-2014 period:

      Example Portfolio UIS

      I’ve outlined one other example strategy here (last example), but you can use our Custom Portfolio Builder to create more.

      Edit: Image is a bit small, here direct link: https://logical-invest.com/wp-content/uploads/2014/12/Portfolio10.png

  • Ben Andersen
    Post count: 3

    Kindly clarify what you mean by “20% of each bond ETF” – I presume that means that you would not follow the actual precise split in the bond strategy but rather just do 50/50%? Why? Cheers, Ben

  • Alexander Horn
    Post count: 401

    Ben, you are right, the suggested 20% or 50/50% was for the former BRS strategy (I have now updated to avoid confusion). With the new adaptive strategy you would follow the precise allocation, e.g. 0/100% to 100/0%.

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