*Updates are made approximately every 30 days
This is a play on the far-famed ‘All-Weather Fund,’ but with added 3x leverage and a few personal tweaks. Over the long term this should not only outperform the S & P 500 index, but also the vanilla All Weather fund due to its leverage, provided one rebalances at least quarterly. The negative correlation, risk parity and etf diversity make for a smooth ride. From January 2011 through December 2018 its CAGR (Compound Annual Growth Rate) when rebalanced quarterly was 20.80% with a Sortino Ratio of 1.82 and a US market correlation of only .46.
A 5 etf fund that utilizes negative correlation and leverage to deliver long term alpha when utilized in a buy and hold strategy with proper rebalancing. From January 2011 to December 2018, its CAGR (Compound Annual Growth Rate) when rebalanced quarterly was 27.8%, with a Sortino Ratio of 2.29, and only a .42 US market correlation.
This fund balances a 3x leveraged Chinese equity fund with a Chinese bond fund. With The Belt and Road Initiative and Made in China 2025 on the horizon, many investors are underweight China, a country who is set to take the 21st century by storm. It is poised to become the world’s largest economy, if it does not already hold this crown. As the 20th century was the American Century, the 21st century is set to be China’s, and this fund allows one to reap the rewards of China’s growth.
This strategy is a 3x leveraged equal weighted fund of the four major indexes, The Nasdaq 100, The S &P 500, The Dow and The Russell 2000. From March 2010 to December 2018 the CAGR (Compound Annual Growth Rate) of the fund when rebalanced quarterly was 26.94% with a Sortino Ratio of 1.32 and a US Market Correlation of .99.
This is a ‘set it and forget it’ portfolio designed for long term wealth creation. It is comprised of 75% stocks, 20% bonds and 5% real estate (REIT) utilizing Vanguard’s low cost advantage. This is a wonderful fund to dollar cost average into for the long term, and is especially designed for millennials or first-time investors looking to get into the market, but haven’t done so just yet for fear that it is too complicated for them to understand; however, this could also serve as a base for any investor’s holdings, be they a millennial or not.
This fund focuses on monthly dividend payers. Many investors understand that the reinvestment of dividends can vastly accelerate the magic of compounding or as Albert Einstein termed it ‘the eighth wonder of the world.’ Additionally, this could be useful for retirees who are looking for stable monthly income, not simply quarterly dividends like most stocks and ETFs pay.
This motif contains a plethora of tax free municipal bond ETFs. This is a wonderful vehicle for those looking for multiple monthly tax-free distributions, or for those who don’t necessarily need the income, but would like to reinvest the dividends so as to create a ‘compounding machine.’
This fund utilizes buy and hold leveraged etfs as part of a speculative long term strategy. While having extreme volatility and massive drawdowns, this fund if held for the long term should outperform the index. It was the great Warren Buffet who opined ‘I’d rather have a lumpy 15% return on capital than a smooth 12%.’ And so, this fund is for those optimists and bulls who rightly believe that stocks rise more than they fall, and that over the long term stocks do move in the upward direction.
This motif invests in companies, products and ideals of the American lower class: Dollar stores, mobile home parks, WWE, Budweiser, and so on and so forth. As the wealth and class divide in America deepens this motif may do quite well as many from the middle class fall into the lower class.
This motif features super high yielders, which allows one with the reinvestment of dividends to accelerate compound interest, which none other than Einstein termed the ‘the eight wonder of the world.’ By the reinvesting dividends the Total Return of this portfolio could be quite interesting, especially the longer one holds it. In addition to reinvesting the dividends, it could be useful to a retiree looking for income.