Market Musings 070226: My ETF Model Portfolio
Market Musings 070226:My ETF Model Portfolio
Podcast: After the correction, is gold still a safe haven? (click on link to listen)In this podcast, Edmund Shing, Global Chief Investment Officer, reviews the recent performance and volatility of gold and gives his outlook.
My ETF Model Portfolio
How have I gone about creating an ETF model portfolio?
First, some basic principles.
I have deliberately taken a relatively high risk approach at the moment, as I judge that we are in a sweet spot for financial market risk. You will thus not find any defensive choices in the 8 ETFs I have chosen for this model portfolio - no bond ETFs, for instance. This will change over time, as my assessment of market risk changes. I have adopted a dual momentum approach, selecting the 8 ETFs according to: Do they have strong absolute positive price momentum over the last 6 months? Do they have strong relative price momentum (versus the broad global stock market) over the last 6 months?Do they give some measure of regional and sector diversification from other ETFs in the selection?
Is the global stock market trending higher? Yes
All major stock markets are trending higher over the last 6 months - but it is clear that the US is now lagging...