Automatic 7 :
- 50% VNQ
- 50% BND
A7 Mom & Pop :
- 25% VNQ
- 50% BND
- 25% STPZ
As usual, details to follow…and why do I get the feeling that I’m in for yet another photo finish? The allocation got flipped from BND (bonds) to VTI (US Stocks) at the last possible second last month…which turned out to be one heck of a fakeout. While it may not cost the portfolio that much in terms of returns (depending on where we close today), it certainly added a lot of unwanted volatility. As a side note, I hate this allocation and sincerely wish that the model would tell me to get into cash, but that’s just not the case. That being said, this will be the first time that the 2 asset version of A7 shifts some money into bonds, which should dampen volatility, but these days, who knows?