Nov 2020 Passive Portfolio Updates
The genesis for this blog was tracking various robotic and passive portfolio investment strategies. I still do that, even after publishing the TQQQ Trading Strategy eBook which outlines a strategy I use to trade the 3x leveraged ETF that tracks the Nasdaq (TQQQ).
The one change I have made to the tracking of those robotic investment strategies is that I will focus on a few of the best known passive strategies.
This is a nice supplement to the TQQQ Trading Strategy which is more aggressive, and can mean higher returns. In the eBook, I talk about only committing a small percentage of a portfolio to the TQQQ Trading Strategy (more details in the book) due to the volatility.
The rest of a portfolio that uses the TQQQ Trading Strategy can be allocated to a more passive and well diversified asset allocation like the ones discussed below.
The Passive Portfolios
The passive portfolios that are tracked on this site include:
- The Boglehead Three-Fund Portfolio (learn more here)
- The Coffeehouse Investor (learn more here)
- The All-Weather Portfolio (learn more here)
- The Harry Browne Permanent Portfolio (learn more here)
- The Paul Merriman Buy& Hold Portfolio (learn more here)
- The Global Value Portfolio (learn more here)
Check out the links below for more information on the passive portfolio strategies.
The Passive Portfolio Performance
So how have those passive portfolio’s performed? The charts below are from the Morningstar portfolio tracker. By looking at these charts from Morningstar you can see how the portfolio has performed related to the S&P500.
Keep in mind though that comparing a diversified portfolio to the S&P500 can be a bit misleading. A 100% equity allocation is going to kill a diversified portfolio in bull markets.
Boglehead Three-Fund Portfolio
All-Weather Portfolio
Coffeehouse Investor
Global Value Portfolio
Harry Browne Permanent Portfolio
Paul Merriman Buy & Hold Portfolio
Summary
It is interesting to see which portfolios held up better than the others. The All-Weather portfolio has done the strongest, while the Global Value has struggled.
That is really no surprise as global stocks got decimated during COVID. The lowest value countries have struggled to recover.
Once things start to move forward and we have figured out how to live with the pandemic in the best way we can, it will be interesting to see how the portfolios do.
Keep coming back to the blog to watch that unfold – subscribe to the newsletter so you can be notified when new posts go live.
The TQQQ Trading Strategy eBook is only $29.95.
Get complete instructions for this easy-to-trade strategy and take advantage of the TQQQ’s mean reversion tendency. Click on the eBook image to the right or below to buy and trade this system yourself.
