TAA Model for January, 2012
This is a monthly feature at the MarketSci Blog.
Our Tactical Asset Allocation (TAA) model selects up to four assets from a diversified basket of asset classes on the final trading day of each month. Below is the new allocation for today’s close. Click to read more about the TAA model.
I eat my own cooking, so I’ve devoted a healthy share of my own net worth to the TAA model (read why). On the last day of each month I share my new allocation (see above) and real-time performance (see below).
The model underperformed its benchmark in December, returning (as of yesterday’s close) -1.9% vs 1.3%.
The portfolio was dragged down by the abysmal performance of gold in December. Gold and Treasuries are both up nicely today so returns for the full month should end near flat.
For January, the model will add a small position in real estate (ETF VNQ). Normally I would say this is a conservative allocation, but given gold’s recent shenanigans, I think this is a moderate allocation.
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Filed under: Tactical Asset Allocation | 9 Comments