Updated Monthly
AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 8/1/18
Active Allocation Bands (excluding cash) 0% to 50%
58% - Cash -Short Term Bond Index - VBIRX
35% -Gold- Precious Metals & Mining - VGPMX
7% -Lt. Bonds- Long Term Bond Index - VBLTX
0% -Stocks- Total Stock Market Index - VTSAX
[See Disclaimer]
DYI:
U.S. stocks continue to rally since April of 2018 pushing the limits of
overvalue to the extreme of insanity with gold declining since February of 2018
by 8.25% increasing our commitment to precious metals mining companies to
35%. If this trend continues DYI’s
sentiment indicator for gold will be moved from hope to depression sitting side
by side with money market funds.
Market Sentiment
For the value based long term investor this
is one of the worst times to purchase stocks.
Go to sleep like Rip Van Winkle and wake up 10 years from now an
investment in a generalized stock fund whether index or not will end up with
zero return for your troubles. Stocks
are that overvalued. Hold longer and will they improve?? Yes they will; but
due to the massive overvaluation not something to jump up and down about. At 15 years an estimated average annualized
return at 2.2% and 20 years is 3.38%. Not any sort of return to base retirement planning unless Alpo is your go to meal plan!
However gold and precious metals mining
companies are setting up for a nice value play as generalized stocks soar and
gold retreats. The Dow/Gold Ratio is now
under fair value** (16) by a greater degree at 21.
**The reason why DYI’s average is different
from this chart our average is based only since 1913 with the formation of the
Federal Reserve money printers.
No matter which way gold, long term bonds or
stocks move our cash horde is significant to take advantage of any undervalued
category that presents itself. Until
then as a long term investor we will use our secret weapon PATIENCE!
This blog site is not a registered financial advisor, broker or securities dealer and The Dividend Yield Investor is not responsible for what you do with your money.
This site strives for the highest standards of accuracy; however ERRORS AND OMISSIONS ARE ACCEPTED!
The Dividend Yield Investor is a blog site for entertainment and educational purposes ONLY.
The Dividend Yield Investor shall not be held liable for any loss and/or damages from the information herein.
Use this site at your own risk.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
DYI
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