Core Satellite Portfolios In Market Turmoil
In the last week’s newsletter, we showed there are a few of ways to utilize a market downturn to reposition or start a new portfolio, specifically for MyPlanIQ’s Strategic Asset Allocation (SAA) or Tactical Asset Allocation(TAA) portfolios. In this newsletter, we continue our discussion for another type of portfolios: core satellite portfolios. As markets are languishing, we believe this discussion is still pertinent to many users.
Regular readers should have known that we are an advocate of core satellite portfolios. A core satellite portfolio consists of core subportfolios and satellite subportfolios. A core (sub)portfolio is a strategic portfolio that can be SAA portfolios or static (lazy) portfolios such as Permanent Portfolios (see, for example, Lazy Portfolios). A satellite (sub)portfolio is a tactical portfolio that can be TAA or other advanced portfolios that can dynamically adjust their risk exposure.
Typical Core Satellite Portfolios
Let’s first review some typical core satellite portfolios.
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