Overview When in doubt, zoom out! Let’s zoom out to the last 150 years or so of stock market performance! In times of crisis, it is often tempting to bet against the market by going to cash. Unless you are going to cash to fund spending, match your risk tolerance, or to follow a preset … Continue reading Tailwinds of Progress, 1871 to 2022
By combining it all together we will see a hypothetical portfolio with an annualized return of 15% with a maximum drop in value of 23% even during the flash crash of 1987, the dotcom crash, the 2008 financial crisis, and the covid-19 crash.
Summary Leveraged ETFs have opened the doors to many unique options. Many of these possibilities are overlooked by advisors and investors. In this post I want to discuss whether it is possible to increase overall returns, while also reducing maximum drawdowns by using leveraged ETFs and diversification. We will also discuss a hypothetical asset allocation … Continue reading 67% Cash Portfolio with A 10% return?
Summary Today leveraged ETFs and inverse ETFs can be found for all sorts of markets such as stocks, bonds, and commodities. Before 2010 there were few leveraged ETFs in existence. For example, the 3X leveraged ETF for the S&P 500 with the ticker UPRO didn’t start until 2009. Fortunately, we can make some reasonable estimates … Continue reading When Leveraged Etfs didn’t exist
This year has been an atrocious year for Tines Capital’s algorithmic portfolios. Stocks and bond have in unison had a terrible year. There has not been a year like this in at least the last 45 years. I want to discuss what the algorithms could have done better and how they are being improved. Despite … Continue reading The Worst Combined Market in 45 Years
Summary When stock markets are not doing well, ETFs tied to long-term US treasuries (loans to the US government) are one of the next best options available in the Tines Capital algorithms. Unfortunately, the use of long-term US treasuries over the last year has been a drag on the Tines Capital algorithms. Naturally this raises … Continue reading Bonds and Rising Rates
Summary The last 12 months have been a particularly hard time for Tines Capital’s active strategies. When strategies of any type are performing poorly, it makes sense to get nervous. Of course, patience and consistency are often the appropriate choice. One of my personal antidotes to getting nervous is diving into what has happened in … Continue reading Trend Following 1900-1949
Summary In regard to tax forms, keep a copy is the best policy. There are two important documents that most retirement account users will receive over the years, forms 5498 and 1099-R. You may not receive one of these every year. If you receive one, it is a good idea to keep a permanent copy … Continue reading Tax Forms For Retirement Accounts
Don’t let your investment accounts be an additional source of stress for you loved ones when you die. Most retirement accounts and investment accounts allow you to designate people or charities to receive your assets in the event of your death. No one wants to think about their own death, but for the sake of your loved ones, take a few minutes to make sure your beneficiaries are set correctly!