Dual Momentum GEM + HBPP a great combo, easy to test

A place to talk about speculative investing ideas for the optional Variable Portfolio

Moderator: Global Moderator

User avatar
ochotona
Executive Member
Executive Member
Posts: 1451
Joined: Fri Jan 30, 2015 5:54 am

Re: Dual Momentum GEM + HBPP a great combo, easy to test

Postby ochotona » Sun Jul 09, 2017 6:41 am

Because if you want to follow the GEM prescription precisely, ACWI ex-US is about 19% - 20% EM. It's everything in the world except US. I have thought about omitting it, but... I don't have the data to prove that would be a good idea.
User avatar
Kbg
Executive Member
Executive Member
Posts: 804
Joined: Fri May 23, 2014 4:18 pm

Re: Dual Momentum GEM + HBPP a great combo, easy to test

Postby Kbg » Sun Jul 09, 2017 12:09 pm

ochotona wrote:Because if you want to follow the GEM prescription precisely, ACWI ex-US is about 19% - 20% EM. It's everything in the world except US. I have thought about omitting it, but... I don't have the data to prove that would be a good idea.


We have a different ball game now that China is in the "EM" indexes, but formerly EM was pretty much a play on commodities...I would say just buy the ETF, but I saw your reason for MFs so that makes sense.

Anyone have a clue what his proprietary mix has in it?
User avatar
ochotona
Executive Member
Executive Member
Posts: 1451
Joined: Fri Jan 30, 2015 5:54 am

Re: Dual Momentum GEM + HBPP a great combo, easy to test

Postby ochotona » Sun Jul 09, 2017 3:58 pm

I was in the proprietary model with Gary, and I was unhappy because I did not understand why changes were being made.
thisisallen
Full Member
Full Member
Posts: 73
Joined: Sat Sep 24, 2016 5:39 pm
Location: NJ and India

Re: Dual Momentum GEM + HBPP a great combo, easy to test

Postby thisisallen » Sun Jul 09, 2017 7:45 pm

Fidelity explained that the early redemption fee is a decision by the fund manager. If a fund manager feels he needs to hold the money for a specified period I n order to boost performance then he is able to make the restriction, charge an early redemption fee.
Shawn Hoover
Senior Member
Senior Member
Posts: 108
Joined: Tue Jan 19, 2016 11:51 am
Contact:

Re: Dual Momentum GEM + HBPP a great combo, easy to test

Postby Shawn Hoover » Tue Jul 11, 2017 8:24 pm

Correcting my earlier comment: the Fidelity funds (at least the S&P 500 Index and Global Ex-US funds) do not currently have short term redemption fees. It seems like I saw that on FSBAX or FSTMX at some point, but I may be remembering only PRPFX. However, they have very clear rules against excessive trading. If you do two 30-day round trips in and out of a fund in 90 days or four across all Fidelity funds in a 12 month period, they'll lock you out of fund purchases for at least 85 days. In that case you're left to call and ask nicely or switch to ETFs anyway. It's rare for GEM to swing enough to violate those rules, so it's not out of the question to use the funds until it does, but it's something to remember.

As an aside, I noticed FSGDX has steadily underperformed VEU and related iShares ETFs the past few years. That would need to be understood before one used it.
User avatar
Kbg
Executive Member
Executive Member
Posts: 804
Joined: Fri May 23, 2014 4:18 pm

Re: Dual Momentum GEM + HBPP a great combo, easy to test

Postby Kbg » Wed Jul 12, 2017 7:56 am

ochotona wrote:I was in the proprietary model with Gary, and I was unhappy because I did not understand why changes were being made.


Are you able to say what assets were/are in the mix? If not, no worries.
thisisallen
Full Member
Full Member
Posts: 73
Joined: Sat Sep 24, 2016 5:39 pm
Location: NJ and India

Re: Dual Momentum GEM + HBPP a great combo, easy to test

Postby thisisallen » Wed Jul 12, 2017 8:08 am

Shawn Hoover wrote:Correcting my earlier comment: the Fidelity funds (at least the S&P 500 Index and Global Ex-US funds) do not currently have short term redemption fees. It seems like I saw that on FSBAX or FSTMX at some point, but I may be remembering only PRPFX. However, they have very clear rules against excessive trading. If you do two 30-day round trips in and out of a fund in 90 days or four across all Fidelity funds in a 12 month period, they'll lock you out of fund purchases for at least 85 days. In that case you're left to call and ask nicely or switch to ETFs anyway. It's rare for GEM to swing enough to violate those rules, so it's not out of the question to use the funds until it does, but it's something to remember.

As an aside, I noticed FSGDX has steadily underperformed VEU and related iShares ETFs the past few years. That would need to be understood before one used it.


I was told that the mgr of FTIPX requires a holding period of 90 days. If a withdrawal is made before 90 days then there is a 1% charge.
And that FUSVX and FSITX do not have any restrictions.
User avatar
dualstow
Executive Member
Executive Member
Posts: 6827
Joined: Wed Oct 27, 2010 10:18 am
Location: Jet lag Land
Contact:

Re: Dual Momentum GEM + HBPP a great combo, easy to test

Postby dualstow » Thu Jul 13, 2017 7:11 am

Some of these might be your kind of thing, ocho, et al.

https://www.bogleheads.org/forum/viewto ... 0&t=222780

I always enjoy grap's posts.
Etymology of "dismantle"- to pull down castle walls, but to lit. pull down a cloak.
"'Your life is tedious and brief.' All sundial mottos are sad like that."
User avatar
ochotona
Executive Member
Executive Member
Posts: 1451
Joined: Fri Jan 30, 2015 5:54 am

Re: Dual Momentum GEM + HBPP a great combo, easy to test

Postby ochotona » Fri Jul 14, 2017 10:39 pm

Kbg wrote:
ochotona wrote:I was in the proprietary model with Gary, and I was unhappy because I did not understand why changes were being made.
Are you able to say what assets were/are in the mix? If not, no worries.


I know what's in the proprietary model, but it would not be ethical for me to disclose.
User avatar
ochotona
Executive Member
Executive Member
Posts: 1451
Joined: Fri Jan 30, 2015 5:54 am

Re: Dual Momentum GEM + HBPP a great combo, easy to test

Postby ochotona » Sat Sep 09, 2017 11:39 am

FWIW, the GEM model is still 100% in ACWI-ex US stocks, that would be the Vanguard ETF $VEU. I personally use 81% $SWISX and 19% $SCHE. This has been the allocation from June 1, 2017, and the next evaluation will be September 30, 2017.
User avatar
ochotona
Executive Member
Executive Member
Posts: 1451
Joined: Fri Jan 30, 2015 5:54 am

Re: Dual Momentum GEM + HBPP a great combo, easy to test

Postby ochotona » Sat Sep 30, 2017 1:49 pm

GEM is still in non-US stocks for October 2017. I thought it might flip. The month ain't over 'til it's over.

Return to “Variable Portfolio Discussion”

Who is online

Users browsing this forum: No registered users and 3 guests