FINANCIAL FREEDOM FOR THE BELOVED
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Portfolios
PORTFOLIOS
Four portfolios are used; Gone Fishin’, IVY, Trading, and SEMO. The first two are designed to require less time to manage; the last two need daily and weekly attention.
IVY and Gone Fishin’ require less time to monitor. They generate fewer signals from a ten-month average signal line. Buys and sells are mechanical and are guaranteed to keep you on the right side of the trend.
The IVY Portfolio is based on research by Mebane Faber which showed that SP500-beating performance can be obtained by trend following amongst five asset classes. Actual results for this strategy are given in the table below.
IVY and Gone Fishin’ require less time to monitor. They generate fewer signals from a ten-
The IVY Portfolio is based on research by Mebane Faber which showed that SP500-
Gone Fishin’ uses a larger pool of classes and sectors which gives better gains than IVY.
Position sizing is used to divide capital among each position. Excess cash is either held in interest bearing ETF’s or added to advancing positions.
SEMO’s position size is “all in” with just one ETF. While this may seem risky, most ETF’s hold
many stocks so they are far more secure than holding any lone stock. The single selection is made by relative price trends and volatility. SEMO back tests to 32% annual gain since 2003, placing it behind Trading, but ahead of IVY and Gone Fishin’.