Numerous changes occurred in the Newton Portfolio since the last update. Shares of many highly correlated ETFs within the “Big Nine” were sold off and that is one of the reasons so many asset classes are now out of balance. A number of Trailing Stop Loss Orders (TSLOs) were triggered this morning as the broad market sold off. The budget crisis, which is totally unnecessary, appears to have no solution due to the “stiff-necks” in the House of Representatives. For this reason, it is time to be patient and wait out this mess. I have limit orders set for several asset classes that are below target, but my orders are placed well below what I think is reasonable as this market could take a plunge on March 1st unless a budget compromise is reached.
The following core of ETFs includes three individual stocks recommended by an ITA reader. I then optimized the portfolio with the following constraints. Check out the particulars in the following screenshot. Over 100 trials were performed to come up with this optimized portfolio.