Enhancing Harry Browne’s Permanent Portfolio strategy using ETFs and monthly rebalancing

Enhancing Harry Browne’s Permanent Portfolio The Permanent Portfolio is a simple, diversified portfolio You can construct it using 3 ETFs: SPY, TLT and GLD We enhance it by allowing variable allocations and monthly rebalancing We offer a free subscription so you can implement it in your own account including 401k or IRA  What is the Permanent Portfolio by Harry Browne Harry Browne’s intention was to find a solution for the money “you need to take care of you for the rest of your life”. He called it the Permanent Portfolio [...]

The Logical-Invest newsletter for February 2019

Our top 3 strategies this past month: Leveraged Universal Investment strategy with +7.5% return. Maximum Yield strategy at +4.3% U.S. Sector strategy (free to subscribe) at +3.1% News: Alex's new post describes the process of blending Portfolios (rather than Strategies or ETFs) using the Portfolio Builder. Bouncing into 2019 Three fundamental trends to watch as 2019 unfolds: The first trend includes the reversal of QE in the U.S, the end of the asset purchase program of the ECB and the decrease of liquidity of most other major central banks. Less money [...]

The Logical-Invest monthly newsletter for December 2018

Logical Invest Investment Outlook December 2018   The graph below is from a recent Bloomberg article entitled "A Brutal Global Market in 2018 Has Just One Champion". That one champion, according to the article, was Treasury bills. It goes on to say: "By one simple measure, this is the worst cross-asset performance in more than a century". Below you can see 89% of all assets had negative performances year-to-date (as of Nov. 22). This may be an exaggeration but it goes to show we are in a difficult market. Volatility is [...]

Logical-Invest Investment Strategy changes for 2019

We have made some quite important changes to the Logical Invest strategies for 2019. Please note that the January strategy allocations will be calculated based on these updated strategies. 401 / IRA compliant base strategies The new strategies will not use leveraged or inverse ETFs, making them and the portfolios derived from them, more 401 / IRA friendly. The changes have been backtested and do not reduce the performance of the strategies due to a well redesigned new hedging strategy. New hedging strategy The hedging strategy is a very [...]

The Logical-Invest newsletter for January 2019

Must reads: Frank Grossmann’s article “How to Hedge in Times of Market Trouble” (Seeking Alpha, LI Blog) 2019 strategy updates (LI Blog) Protecting your money After almost 10 years of a continuous bull market and 2 years of exceptional growth (2016-2017), 2018 was the first year that the SP500 turned negative. Apart from the dollar index, most asset classes also fell. To make things worse, the S&P500 dropped -20% from the September highs during what is traditionally the best 3 months of the year. Although unfortunate, it does create a rare [...]

‘Hell on Fire’: The 3x leveraged Universal Investment Strategy

Summary: -Aggressive leveraged version of our previously published Universal Investment Strategy -Variable SPY-TLT allocations dynamically adapted to the market conditions. -45% annual return with a Sharpe Ratio of 1.3 since 2002. Due to its simplicity and low correlation to the S&P 500, there is a continued interest in the UIS version that uses 3x leveraged ETFs: ETF SPXL (Direxion Daily S&P 500 Bull 3X Shares ETF) and TMF (Direxion Daily 30-Year Treasury Bull 3x Shares ETF). Following the suggested nomenclature by Al from AAII SV - and to honor their interest, we call this version “Hell on fire”, which alludes to the high risk/return profile of the strategy. We will show ways to blend this strategy in a well-balanced and risk-optimized portfolio as to overcome the generally negative perception of private investors towards leveraged ETF.

Easy Investing in a multi-strategy Markowitz optimized Portfolio

In our recent post we´ve shared some powerful options to design a well-balanced portfolio of several Logical Invest strategies to achieve a preset portfolio objective using Modern portfolio theory (MPT) techniques developed by Nobel Prize laureate Harry Markowitz. Here, we review the steps to achieving an optimized portfolio with our tools and summarize some portfolio options to illustrate use of our updated tool set:(picture for mobile use)These options might serve as a starting point to design your own portfolio according to your return and risk preferences, fundamental beliefs or asset class preferences.How do I [...]

The Logical-Invest monthly newsletter for November 2017

Logical Invest Investment Outlook November 2017 Our top 2017 investment strategies, year-to-date: The Maximum Yield strategy with 52.51% return. The Leveraged Universal strategy with 34.36% return.   The NASDAQ 100 strategy with 29.34% return. SPY, the S&P500 ETF, returned 16.68%. Market comment: Just like September, October was positive for the S&P 500. The index gained +2.36% continuing its multi-month rise to new highs. U.S. Treasuries did not manage to recover after last month's losses, staying almost flat at -0.04%. Gold showed weakness returning -0.75%. Our strategies recovered quite well as they shifted weights into equity and decreased or replaced [...]

The Logical-Invest monthly newsletter for November 2018

Logical Invest Investment Outlook November 2018 Our top 2018 investment strategies, year-to-date : The NASDAQ 100  strategy with +9.95% return.   The Gold-USD  strategy with -0.81% return.  The BUG strategy with -2.02% return SPY, the S&P500 ETF, returned +2.74%. Market comment: October was not a good month as the S&P 500 had a mini-crash and an 'official' correction touching the -10% mark from the September highs. Other markets followed the drop leaving many foreign markets in the red for the year. Our strategies were affected as well.  Let's take a look at how they reacted to this correction. [...]

Logical-Invest review @ Daily Fintech

With a lot of hype about FinTech these days, we´re happy to have received a positive review from one of the most important FinTech blogs. What is FinTech? Here the definition of FinTech by Investopedia: Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century. Originally, the term applied to technology applied to the back-end of established consumer and trade financial institutions.             A review of Logical Invest by Efi Pylarinou @ Daily Fintech "Logical-Invest offers actionable portfolio [...]