The following chart shows the total return for The 12% Solution strategy from 2008 to 2021 (last full year). Our benchmark for this post is VBINX, the Vanguard mutual fund offering the classic balanced allocation in one play: 60% stocks, 40% bonds. So what does this match up look like? Graphics courtesy ETFreplay.com Why the comparison to the 60/40 VBINX? Why not SPY? In the book, as the strategy is unfolding step-by-step, we spend a good deal of time looking to SPY (the popular ETF that mirrors the S&P 500 index) to gauge performance. And in fact, on the Members Page (details below), we continue to use SPY as our primary benchmark. But the strategy at its core is a 60/40 allocation model - with a twist. That twist: the strategy rotates among multiple ETF candidates representing the two asset classes. Because a static 60/40 portfolio like VBINX or something similar has found its way into many investors' portfolios, I thought it would be instructive to see how our strategy and the static model ride out the same storms in the marketplace. By the way, 2022 YTD looks like the following, through May 11:
A Reminder: The 12% Solution is an easy, do-it-yourself asset allocation strategy that adapts regularly to changes in market conditions. We make 2-4 trades a month. The strategy tells us what to buy and what to sell. Then, we turn off our computers and go live our lives.
Don't yet have the book? Buy it on AMAZON.COM. * Regards, David P.S. A menagerie of additional data - including the ETF picks and returns for every month dating back to 2008 - are posted and updated regularly on the strategy's Members Page. Readers of the book can sign up for access to the Members Page, as well as the monthly newsletter. Details in the book (look for the chapter: A Note To The Reader). P.P.S. Curious about the subscription strategies offered by the author? Four diverse ETF monthly trading strategies: Bond Bulls, Global Trader, American Muscle, and The White Knuckle. Check them out at TrendlineProfits.com. * Affiliate: As an Amazon Associate, I may receive a small commission on purchases made through links to Amazon.com. Read the full Affiliate Disclosure. Comments are closed.
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