The Ivy Portfolio
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Jason, I agree. And I wasn’t suggesting you start adding tax implications to the program (I’m not a needy biatch like Squash ) - I was just curious how you handle taxable accounts differently (if at all) from tax deferred. Though I don’t know the nuts and bolts, your Formula Folio portfolios appear rather tax in-efficient, so that’s why I was wondering.
[quote=B24]Jason, I agree. And I wasn’t suggesting you start adding tax implications to the program (I’m not a needy biatch like Squash ) - I was just curious how you handle taxable accounts differently (if at all) from tax deferred. Though I don’t know the nuts and bolts, your Formula Folio portfolios appear rather tax in-efficient, so that’s why I was wondering.
[/quote]For the most part, what I do is pretty tax efficient. We never have embedded gains that cause tax implications in years we lose money.
The Ivy Port is a model - and a semi active one. FormulaFolios are actually 10 different models, with most being pretty tax efficient. We use about 30% of assets in total return (or absolute) strategies. Those can be pretty inefficient, so we'll often do those in qualified accounts and the others in non qualified accounts.
FYI to all- the video is now live, enjoy.
That was good info, is there a place to find out more info about your Folios? Then absolute return seemed interesting, do you have a further back test than what was on the site?
We're having a site developed that should be done sometime in the next decade for our strategies. Backtesting may or may not be included, I've been struggling with showing that kind of data as there are a lot of unscrupulous dudes running around right now with shady backtestd data that I think could totally blow up. I don't wan't to be in that crowd when/if it happens. Thanks for the compliment, JWThat was good info, is there a place to find out more info about your Folios? Then absolute return seemed interesting, do you have a further back test than what was on the site?
[quote=henrybar]On the 110/10 strategy how do you know what asset to short?[/quote]
Each asset is ranked 1 to 6. The one ranked last is 10% inverse.
JW
For those of you using a Mac, and interested in downloading stock prices, this is a good starting point …
http://www.numberstemplates.com/2007/08/19/how-to-get-stock-quotes-into-apple-iwork-numbers-08/
Simply change the info in the url, as seen in the formula bar.
How would you go about shorting(new). It is my understanding that inverse etfs are not meant for more than 1 day hold because the tracking error would be off so badly. And to my knowledge, you also can't short ETFs(because they are a prospectus item)>[quote=henrybar]On the 110/10 strategy how do you know what asset to short?[/quote]
Each asset is ranked 1 to 6. The one ranked last is 10% inverse.
JW
I just read the “Ivy Portfolio” and saw he quotes No down years even in 2008 .
Pretty impressive.
What are the best etf’s to track his indexes?
SPY EFA easy 10 year treas?, Commodity index dbc?, Nareit?
10 month moving ave on month chart ; got you back in the Spy around 88 and has a stop around 100.
I could see some clients getting antsy sitting on their hands for months waiting for the ma’s to turn up. ( you would have missed abig part of the move? right?)
Any way to make it more responsive?
Would it make sense to keep 1/6 in SH and only use when it was above ma (10) currently about the $61 eyeballing it; tricky with a new asset to see the 200 day ma.
Thx
He gives you the ETF's to use in the book!
What are the best etf’s to track his indexes?
2008/2009 was an extreme example. Using some common sense, you could have started DCA'ing back into equities in early 2009. But that is based on us knowing where we ended up. Had the Dow kept going to down to 4000 through July 2009, then that strategy would have been toast. Problem was, the market turned on a dime. So you could also look at shorter term MA's to gain some perspective. That would have gotten you in sooner. But really, you want to avoid "whipsaws" - getting in or out and then having to reverse that a month later. So there is always a lag time after the MA crosses. Really, the big benefit was the downside protection is provided. It is much tougher to implement in a choppy, sideways market, as you get many more "whipsaws".I just read the “Ivy Portfolio” and saw he quotes No down years even in 2008 .
Pretty impressive.
What are the best etf’s to track his indexes?
SPY EFA easy 10 year treas?, Commodity index dbc?, Nareit?
10 month moving ave on month chart ; got you back in the Spy around 88 and has a stop around 100.
I could see some clients getting antsy sitting on their hands for months waiting for the ma’s to turn up. ( you would have missed abig part of the move? right?)
Any way to make it more responsive?
Would it make sense to keep 1/6 in SH and only use when it was above ma (10) currently about the $61 eyeballing it; tricky with a new asset to see the 200 day ma.
Thx
Instead of 10 year charts; can you use use 2 year daily charts with the 200 day as trigger.
like for dbc
or would you chart the index on 10 year monthly and then use the newly created etf?
So always using 10 year monthly charts for all markets? right?
thx
I would only use monthly charts. Too much noise with daily charts. I use BigCharts. You can use 10 month, 200 day, whatever you want (I use 10 month). I usually use either the actual fund (if enough history), or an Index proxy (i.e. use VFINX for an S&P 500 Index ETF). The returns are not identical due to expenses and tracking errors, but as long as you use a close proxy, you’re fine. I prefer those over the actual index symbol, as they are “truer”. However, I don’t know if I would be using ETF’s without a 10 month history?? All of the funds/ETF’s I use have enough history.
I found his link form his site;
Looks like he is currently carrying 12% risk if all markets fell < monthly ma (10) …
Bonds are just about stopped out…
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3390852
That’s assuming you only use Treasuries. I use TR bond funds for much of my fixed income, and let the managers worry about it. I let them get out of Govies at the right time. One less asset class to worry about. However, I will use govies for a sleeve. For example (I’ll do a simple example), for a conservative investor, I might have 60% in total return bonds, and then 40% actively managed between large & small stocks, int’l, emerg markets, and treasuries, and then only adjust the 40% based on MA’s. The other 60% is meant to give a steady return (ie. PIMCO TR). Sometimes I just use a global fund for large equities (i.e. First Eagle/Blackrock/MFS, etc.) - domestic and int’l.