Roth/401k portflios

After some thought changed the portfolio to include gold. Hopefully this will provide more diversification. Historically this has been the case. Using IAU to invest. This should be the last change for awhile.

Added a 1/3 position of IAU today at 16.12. Watching SPLV and EFAV as they are closing in on their RSI(14) 30 levels where I will add another 1/6 position to each.

Roth

The portfolio will consist of: VB(14%), SPLV(14), EFAV(9), VWO(9), EEMV(9), VNQ(12), JNK(5), VCLT(5), IAU(9), and cash. Once portfolio  is full will rebalance yearly.


401k - Gain/loss % includes matching funds, so fund performance will look better than actual.

Only non-load offering is RERCX. Will move money market money to RERCX on next below/above 30 rsi weekly.


New correlation matrix with addition of IAU

Matrix is from etfscreen.com

Roth Portfolio holdings info (edited 12/28/12)

Click on the below assets to link to the etf provider info.

VB(14%) - US small cap, 1777 holdings

SPLV(14%) - S&P 500 low volatility, 100 holdings

SCZ(9%) - Developed small cap, 1380 holdings

EFAV(9%) - Developed minimum volatility, 173 holdings

VWO(9%) - Emerging markets, 908 holdings

EEMV(9%) - Emerging markets minimum volatility, 212 holdings

VNQ(12%) - US REITs, 188 holdings

JNK(5%) - US high yield bonds, 325 holdings

VCLT(5%) - US long term corporate bonds, 1180 holdings

IAU(9%) - Gold trust

Cash(5%) - money

Will I be diversified Cramer? Equity wise yes. If I wanted an uncorrelated diverse asset portfolio, no. Right now, treasury bonds, us dollar, and vix are negatively correlated. I can't imagine $1000 invested today in any of these will be more than what I can make in internet checking accounts in 10 years. Either way I see a loss to inflation. I read somewhere recently that treasury bonds are priced at the 98th percentile and stocks at the 68th. So stocks aren't screaming cheap compared to historical valuations, but bonds look mighty expensive. What looks cheap now, uh, maybe the PIGS, Russia, and Austria, but I'm not investing in individual countries with this portfoilio(besides US). Gold is still a possible addition to the portfolio. Added IAU on 12/28/12.

Shown below is a 6 month correlation matrix of the portfolio assets. As can be seen only VCLT shows negative correlation,

Matrix is from etfscreen.com

Roth/401k portfolios

As I started the portfolio with an existing VNQ positon, I sold some today for 4.86% to get down to my desired allocation.
I also sold an existing OBCHX position for a 0.19% profit. That one kinda stings, as I was up around 100% on it in late 2010, and didn't sell.
Plan is to add 1/6 positions when daily rsi goes below 30. Add 1/3 position when weekly rsi goes below 30.

Roth

The portfolio will consist of: VB(16%), SPLV(16), SCZ(9), EFAV(9), VWO(10), EEMV(10), VNQ(15), JNK(5), VCLT(5), and cash. Once portfolio is full will rebalance yearly.



401k - Gain/loss % includes matching funds, so fund performance will look better than actual.

Only non-load offering is RERCX. Will move money market money to RERCX on next below/above 30 rsi weekly.