The other day my brother visited me as he wanted to borrow my car roof box. Like many other these days, we discussed the Corona virus and along with it the stock market crash. I showed him my Momentum signals page and explained how I take actions as they change.
I noticed that I had a hard time explaining the concept of portfolio tranching to him. What is dimly said is dimly thought out! I realized that the chart I showed him was very hard to understand, so I decided to revamp it with the aim to make it more intuitive.
This is now done, and I believe it is now much easier to grasp. But during the process, I found an error in the calculations, probably introduced somewhere in autumn 2019, meaning that the portfolio tranching concept has since then not at all been in action, but instead 18*4 lock-back periods, with a week in between.
Actually, but to no surprise, the unintentionally calculated signals have been more responsive to the recent stock market decline compared to the portfolio tranching variant.
Therefore I have decided to simplify the rules. The investment signals are from now on calculated solely based on the 1-18 month performance, and not on how the performance looked like 1,2 & 3 weeks earlier.
The Investment strategy document will be updated accordingly.
Thank you Mikael, for bringing this to my attention.
I noticed that I had a hard time explaining the concept of portfolio tranching to him. What is dimly said is dimly thought out! I realized that the chart I showed him was very hard to understand, so I decided to revamp it with the aim to make it more intuitive.
This is now done, and I believe it is now much easier to grasp. But during the process, I found an error in the calculations, probably introduced somewhere in autumn 2019, meaning that the portfolio tranching concept has since then not at all been in action, but instead 18*4 lock-back periods, with a week in between.
Actually, but to no surprise, the unintentionally calculated signals have been more responsive to the recent stock market decline compared to the portfolio tranching variant.
Therefore I have decided to simplify the rules. The investment signals are from now on calculated solely based on the 1-18 month performance, and not on how the performance looked like 1,2 & 3 weeks earlier.
The Investment strategy document will be updated accordingly.
Thank you Mikael, for bringing this to my attention.
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