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Movement Capital’s Composite Strategy: Balancing Strategy and Asset Risk

This is a test of Movement Capital’s Composite Strategy. It combines tactical asset allocation with passive buy & hold. This balance between strategy risk and asset risk may be psychologically easier to trade, encouraging investors to stick with a smart investment plan when either style finds itself out of favor. Results from 1970 net of […]

We’ve Added Three New Strategies

There’s a little something for everyone in this latest batch of new strategies. We’ll be exploring all three strategies in more detail on this blog in the coming month. 1. Movement Capital’s Composite Strategy (member link to backtest) Movement Capital is new on our radar, but has quickly become one of our go-to resources for […]

Balancing Strategy and Asset Risk

New to Tactical Asset Allocation? Learn more: What is TAA? The Two Centuries Investments blog from Mikhail Samonov has become a new favorite of mine. More “thought heavy” than “numbers heavy”, Mikhail is a fount of novel ideas. In this piece he describes something I apply in my own investing (though never defined so succinctly): […]

Tactical Asset Allocation in July

This is a summary of the recent performance of a wide range of excellent Tactical Asset Allocation (TAA) strategies, net of transaction costs. These strategies are sourced from books, academic papers, and other publications. While we don’t (yet) include every published TAA model, these strategies are broadly representative of the TAA space. Learn more about what […]

TAA and Transaction Costs

New to Tactical Asset Allocation? Learn more: What is TAA? There are two hard costs that investors must consider when comparing a tactical asset allocation strategy to conventional buy & hold: (1) increased tax liability (if trading in a taxable account), and (2) increased trading costs (transaction costs and slippage). Because we track so many […]

Philosophical Economics’ Growth-Trend Timing (Redux)

This is a test of two variations of the Growth-Trend Timing (GTT) strategy from the always thought-provoking Philosophical Economics. GTT combines trends in both price and key economic indicators to switch between US equities and cash. Like most trend-following strategies, the strength of GTT hasn’t been in generating outsized returns; it has been in maintaining […]

Allocate Smartly Just Got Even Better

We completed a BIG site upgrade over the weekend. 90% of the changes are behind the scenes. We refactored our code top to bottom. This site has come a long ways from its humble beginnings and it needed some spring cleaning. This will also help with scalability, to make sure we stay a few steps […]

Tactical Asset Allocation in June

The Threat of Rising Rates and the Impact on TAA vs B&H Investing

We’ve written a lot here and on our sister site BetterBuyAndHold.com about the threat of rising interest rates. You can read some of our past work projecting returns for Treasury ETFs and other interest rate sensitive assets here and here. In a nutshell, assuming that we’re near the tail end of this 37+ year march […]