After a lot of testing and re-testing I have decided to make some changes to my program. 

While still using ETFs (Exchange Traded Funds)  I will restore the 5 Position Model Portfolio we were using in the old CAPP system.  But I will also change the format.  The 5 positions will now be devoted to 5 Asset Classes as follows:

Pos 1     North American Equities.

Pos 2     Bonds

Pos 3     Commodities

Pos 4     Real Estate

Pos 5     Foreign and Emerging Markets

Testing going back to 1972 showed that this Asset Allocation model has outperformed the S & P by 7 – 9% points and showed NO losing year during that period.  Thus, LESS RISK AND GREATER POTENTIAL GAIN.

Positions will be invested in the applicable Asset Class as our market timing indicators dictate.  It is not likely that all 5 positions will be invested at the same time as the asset classes usually do not all rise and fall together. 

Tax implications should be minimal.

I have created a spreadsheet showing a model portfolio of $100,000.00 with 5 positions of $20,000.00 each devoted to each of the 5 Asset Classes. This plan should avoid any major market declines and profit from periods of rising markets.  

It is my intention and hope to report on this program every week.

Keep Well,

Ted Lagerway