Creating my Retirement Portfolio – 4

Back to the Ivy Portfolio. In the Ivy Portfolio the simplest version is to put money 20% each into the following: Domestic stocks, Foreign stocks, Bonds, Real Estate and Commodities. Once I commit 45-50% of our money into stocks. I have to choose where to put my 45-50% anti-stocks monies into. When stocks are falling, some or all of the anti-stock funds should be firing entry signals for long positions, enabling me to keep drawdowns low and a steady move up on my total equity chart. My method will be to use my own unique upgrade system on my 401K funds, use the dynamic hedge or straight puts and calls on a few select stocks and then select the anti-stocks using timing systems using Metastock software.

The four categories for anti-stocks will be Commodities, Bonds, Real Estate and Currency.

Commodities:  I am looking at GLD, WAT, OIH,   (Gold, Water and Oil)

Bonds: TLT, TIP, ITR, CSJ 

Real Estate: VNQ, IYR and SPG

Currency: CEW, FXA, FXB, FXC, FXF, FXY and UUP (Emerging markets currency, Australian dollar and other currencies and of course the US dollar)

I have added currencies as I feel our US policy of spending more than our revenue will come to roost hard one day and will negatively impact the value of the dollar. My position is we need to increase revenue on the high earners and reduce expenses across the board as well as increase penalties on frauds and scams that waste our monies. But our Government appears to be deadlocked on policies. It would be best to hedge that by putting some of our monies into the strongest currency rising. And if that turns out to be the US dollar, that would be great but why hold our breath when we see FXF etc. climbing and not the US Dollar – UUP.

By keeping individual trades at a smaller percentage of the account, I should be Ok on position management. Still, my preference in the past has been to trade more stocks than ETFs as my trading systems work better on stocks than ETFs. I will have to think about that as I start running some back tests.