I had described here https://getqu.in/wtMaho/ described an investment reserve that can generate an excess return with similar or lower volatility than the overall market.
Very abbreviated:
We hold 20% in cash bonds and gold and start buying in reset, parameterized with increasing leverage.
What has changed since the last post?
1. all US bonds and US dollar cash have been removed from the portfolio, the uncertainties surrounding the Mar-a-Lago Accord are simply too great in relation to the opportunity to take a few percentage points in currency gains.
2. as it was (rightly) pointed out that the strategy is somewhat fragmented, I decided to make a few small adjustments.
The inflation-linked government bonds have left the portfolio. On reflection, money market funds and long-dated bonds are completely sufficient to compensate for inflation. (thanks for the comment @SchlaubiSchlumpf )
The investment reserve therefore looks like this:
-------------------------------------------
EURO
30.0% Money Market $CSH2 (+0.01%)
30.0% German Gov. Bonds 7+Y $X03G (+0.56%)
-------------------------------------30%
Swiss Franc
20.0% Swiss Gov.Bonds 7-10Y $CH0440081393 (-0.04%)
-------------------------------------20%
Swiss Gold
20.0% Gold $EWG2 (-0.53%)
-------------------------------------20%
==========100%==========
3. on the way south, the portfolio has already been rebalanced twice.
In concrete terms, this means that bonds have been sold and the $VWCE (-5.52%) bought so that the 80/20 ratio is maintained.
The $ACWI in USD broke through the threshold of 10% to its all-time high today, whereby the first still leveraged position was built up.
Purchased were:
2.5% MSCI World Ex USA $EXUS (-5.25%)
1.0% MSCI USA 2x $CL2 (-9.18%)
This means that the first 17.5% of our investment reserve is now invested.
The next purchase will be made when the $ACWI 20% away from the ATH, which would then be around $100.00
