Long Term Stock Timing Based Portfolios And Their Roles
We introduced a few long term stock timing portfolios several years ago. Specifically we keep track of two Simple Moving Average (SMA) based portfolios on Advanced Strategies page. The first one is a 200 days SMA based portfolio:
|Ticker/Portfolio Name||1Yr AR||3Yr AR||5Yr AR||10Yr AR||10Yr Sharpe||Since 3/31/1988|
|P SMA 200d VFINX Total Return Bond As Cash Monthly||17.8%||9.4%||13.0%||12.2%||0.91||N/A|
|P SMA 200d VFINX Monthly||16.8%||8.4%||12.4%||10.2%||0.77||10.7%|
|VFINX (Vanguard 500 Index Investor)||24.5%||10.7%||13.8%||7.1%||0.32||10.1%|
The portfolio buys Vanguard 500 index fund (VFINX, an S&P 500 index fund) when its total return line is above its 200 days SMA and sells VFINX when its total return line is below the 200 days SMA. It then either goes to CASH (the second portfolio) or goes to a total return bond fund such as P_46880 (Schwab Total Return Bond) in the first portfolio. The portfolio makes the above transactions at the end of a month. These portfolios only invest in US stocks (S&P 500 index fund).
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