December is going to be interesting, mostly from a performance point of view. Based on seasonality, emotions and gut feeling, I’d go mostly into stocks, mostly US. My Max-Sharpe approach tells me otherwise, and I will stick with the boss’s allocations. Here they are:
|US Notes (IEF)||51%|
|S&P 500 (SPY)||31%|
|US Bonds (TLT)||18%|
Yes, you read it right. 51% in short-term treasury bonds and a whopping 70% in bonds altogether. The world markets must have been doing abysmally for these allocations to materialize. Which is actually not too far from the truth. An interesting month as I said.