Life has happened pretty hard to me over the last few weeks, and I’ve gotten terrible about keeping to my posting schedule here on Margin Studies. Huge workloads combined with travel and then the related panic of catching up with work after a month of travel definitely has me reeling!
BUT I’M BACK AT IT AGAIN WITH THE WHITE VANS.
It was fun to dive back into checking in on the status of the investment study. I’m a complete nerd about it, but it’s fun to see how these different portfolios are reacting to the different market conditions.
If you haven’t read up on the investment study, feel free to check it out here, otherwise, lets move on 🙂
Current Score Cards: Investment Study Version 2/27/19
Static Investment Study:
Dollar Cost Averaging Study:
Last month, I made the point that the influx of $1000 that these portfolios were receiving would likely cause different results as we go in the study. And after two months we are already seeing a difference in the standings of the Dollar Cost study vs the Static Study. The Midwest portfolio still retained the top spot, but the Risky Robots aggressive robo-advisor based portfolio as well as the Simple path are not far behind. This is will be an interesting study to watch over time and perhaps use to help you decide what path you want to take with your own finances, as this models an average investor’s Monthly 401k / IRA contributions.
A look into each portfolio…
If you’re interested in learning more about each specific portfolio, they are described more in detail on the Original Investment Study post.
The Ivy League Portfolio
The Ivy League Portfolio vaulted forward with a 12.3% gain to $10,345.36 over the last two months. Because it’s a balanced portfolio, it wasn’t able to see the same gains that the more Stock Heavy portfolios saw over the last two months. (Static Study rebalance) However, because of the success of the stock markets, in order to keep balanced, one share of VTI and VNQ were sold to buy more bonds.
The Midwest Portfolio, a portfolio comprised of ETFs and modeled after Ray Dalio’s All Weather Porfolio, is still the champion among our non mattress portfolios. It’s worth noting that it’s holding onto the top spot while having the least impressive gains over the last two months. (Static Study rebalance) The big transactions that took place to rebalance was taking some stocks off the board (VTI) to purchase more long term bonds (TLT)
The Risky Robots
This aggressive robo-advisor based fund came roaring back thanks to it’s heavy emphasis on US, Foreign and Emerging Stock Markets. It’s holding the number two spot behind the Midwest in both the static and the dollar cost study. If we have another profitable couple of months, this portfolio could very well take the number one spot, however, it will be hard to keep pace with the next two portfolios in sunny weather. (Static Study rebalance) to rebalance, the Risky Robots portfolio also took some money off the table and sold a couple shares of US and Dividend Stocks to increase its holdings of Bonds, but also poured some extra money into the Non- US stocks.
The Simple Path
This portfolio is made up of 100% US stocks, and while this portfolio took the largest hit over the first two months of the study, it’s come back in a wild way! A strong recovery in the US markets brought this portfolio up nearly 20% to reach $ 10,317.43. I’m not a unicorn within the FIRE community, and I have a lot of faith in the Simple Path to Wealth that Jim Collins writes about, this is both the simplest portfolio for me to manage for the investment study, it also happens to be where my money is.
The Smoother Path
Because the Smoother Path is weighted 89/11 US stocks and US bonds, it has experienced some of the bigger whiplashes of this investment study, pretty similar to what we’ve seen with the Simple Path, it gained about 17% to reach $ 10283.82 — it’s a big gainer, but
Don’t call it a comeback
We did it. all of the portfolios are back to positive numbers! I’m more excited about the future of this investment study than I was in december, It’s exciting to see the way these portfolios are handing differences in market conditions.
I scheduled the next update of the investment study for April, 24, 2019.
How are you doing? How are your investments doing? Are you along for the ride, too?