All this talk of Capital Efficient ETFs has led me to create a new test portfolio: the Capital Efficient Golden Butterfly (CEGB). It’s 40% NTSX, 25% GDE and 35% RSBT, profitable but still diversified, with 75% in additional leverage. Backtests are awesome - can’t wait to watch its progress!
That light at the end for the tunnel I wondered about in November is now making choo-choo noises. December was reminiscent of the summer, as most assets slid. RPC Stability still in first but RP portfolios with leverage are struggling.
Two strong months in a row. Is there a light at the end of the tunnel? Or is that an oncoming train? No predictions, but for now, we breathe. The Levered Butterfly was the winner this month, with the RPC Stability still in first overall. Good month for RP portfolios compared to traditional ones.
A real Tale of Two Cities kind of month for investors: stocks boomed, fixed income bolted in the opposite direction, with alternatives plugging along. Great month for the traditional portfolios, as diversification meant “de-worse-ification.” RPC Stability still in the lead, though.
I changed the composition of portfolios recently to reflect new learning about better choices for some asset classes. In the same spirit, after reviewing the Kitces paper recently, I’m adding rebalancing rules to two test portfolios to see what kind of difference they make.
