Update on the Perfect Portfolio

Posted on by The INO.com Team

The month of November proved to be the perfect month for the Perfect Portfolio.

Out of the four markets that we track in the Perfect Portfolio, we’ve made money in three of them. To put it another way, the Perfect Portfolio was 75% correct. The biggest winner was our GLD position that tracks gold which gained 12.77% for the month. The next winner was SPY, which tracks the S&P 500 index. It went up 6.06%. Next to that was our position in the FXE which tracks the euro. This market produced a positive gain of 1.99% from November. The only ETF that disappointed us was the crude oil market which we used the symbol USO to track. This produced a negative return of .45%.

All-in-all, the Perfect Portfolio outperformed most other diversified strategies.

For the month of November we saw a positive gain overall of 5.09%. If you haven't watched our Perfect Portfolio video you can watch it here.

All the best,
Adam Hewison
President, INO.com
Co-creator, MarketClub

23 thoughts on “Update on the Perfect Portfolio”

    1. Sonja,

      Thank you for your feedback.

      It is possible to borrow these ETFs from your broker and short them. I would check with your broker and see if he has this service available.

      All the best,
      Adam

  2. Alan,

    The Perfect Portfolio is longterm. It expect that you will always be following the signals. That said a few days either way is not going to make to much of a difference in the long run.

    All the best,
    Adam

  3. Once again, Thank you Adam
    Now there are those of us who are a little short in faith, and did not get in initially with your perfect portfolio, and are now busy kicking ourselves, so when is a good time to get back in?
    Alan

  4. Hugo,

    The move on Friday in gold was a downdraft. It was not a change of the major trend which remains positive at this time. This coming week should present more clues as to golds next swing.

    All the best,

    Adam

  5. ADAM.....

    Here's an apparently simple question, but not so simple:

    Gold is still a MAJOR UPTREND; but today many of us got caught in a "DOWNTREND". So my questions simply are:

    What constitutes a DOWNTREND?

    What makes a Downtrend, a Downtrend?

    How do we recognize a downtrend when it's coming? and

    How far down does it have to be from the top to BE a downtrend?

    Thanks Adam, as usual, you have an Avid student here.

    Regards,

    Hugo.

  6. Hugo,

    The pullback in gold today to the 1170 1167 area is probably an opportunity to buy for the longer-term. The pullback represents a 61.8% retracement which is a very important Fibonacci number.

    All the best,
    Adam

  7. Adam, thank you once again for the iformative video.

    Question: What's your take on Oil since it fail to follow through on the "flag formation" it had made earlier last month? where is it going from here? where would be a good entry point?

    Question: Since the recent economic so-so news is always a retraction for Gold; where is a good entry point for Gold between today and tomorrow morning? since the bad news hits at 8.30am eveyone from here to China is going to be glued to their T.V. to hear the news. Where can we Re-enter Gold?

    Thanks for giving these questions your prompt attention.......since the clock is ticking and time is "very" short.

    Regards,

    HUGO.

  8. Adam,
    In case you did not see my last response, the firm I work at does not allow the use of USO- I have been unable to find another pure play - some of the things that I have looked at but have been disappointed at are:
    RJN
    XES
    if you have a more appropriate choice I would appreciate the feedback.

    1. Craig,

      If you can't trade the USO you may want trade a Crude oil futures contract and the deleverage that position so it will be less volatile in your portfolio.

      All the best,
      Adam

  9. When the "Perfect Portfolio" video was first introduced I started following. I have inversely correlated ETF's for those included (i.e. USO/DNO). When a WEEKLY RED Triangle appeared on USO I checked DNO and found BOTH Monthly and Weekly GREEN Triangles.
    QUESTION: Would a viable strategy be, exit USO on the Weekly RED and enter DNO with the GREEN Monthly and Weekly? This would satisfy the "shorting" of USO. Thank you.

    1. Lee,

      The Perfect Portfolio only uses the monthly Trade Triangles and is always in the market either long or short. It does not employ the weekly Trade Triangles.

      You can use variations and combine with the weekly but that will incur more trading and more expenses.

      All the best,
      Adam

  10. Adam, it would be a more perfect porfolio if you added a more non correlated asset like Treasury bonds, as Kevin noted above, gold, stocks, Euros and Oil are all anti US dollar trades.

    1. Sean,

      I disagree with you saying that the Perfect Portfolio is anti-US dollar trades.

      The four markets we have chosen are big, international and liquid. Historically these markets have had big moves every year on the upside and downside. As a trader I am looking moves in the market that I can capitalize on.

      Thanks for your feedback.

      Adam

  11. i think a good strategy is also to put money in a high dividend/yield portfolio, I did not see that in your perfect portfolio.

  12. The perfect portfolio is stop and reverse on the monthly trend triangles so when a sell signal arrives for the dollar that is what will happen. After some losses of course but over the longer term in the high volatility environment that exists right now and seems likely to continue the strategy should succeed.

    1. Craig,

      I'm not sure why you'd want to substitute USO. That is what we have in the portfolio, and that is what we are tracking.

      All the best,
      Adam

  14. Your perfect Portfolio seems to be based on a devaluing dollar (which is a smart play right now). I would consider replacing oil, which is likely the most volatile component of this portfolio, with something that would provide more balance in case of a sustained dollar rally or market correction. WIP would at least provide inflation protection that is not linked to oil.

    1. Kevin,

      Thank you for your feedback.

      Why you may view the Perfect Portfolio as a play on a devaluing dollar the concept behind the portfolio is to deal in big international liquid markets.

      I think the four markets we have chosen are going to offer trading opportunities both on the long and short side.

      All the best,

      Adam

  15. Dear Adam - I very much like this approach - its simple/easily managed and well diversified.

    But if one wants to start off using this concept with @now as day 1 would one enter fully invested into all of these EFT's straight away - splitting allocated capital on the 25/25/25/25 basis? or in some cases to wait in cash until one saw optimal signals for each respective asset class?

    Also if one is not yet comfortable with shorting - is it appropriate to hold, over longer term periods, ETF's which themselves short these sectors ? Are these only supposed to be held very short-term because they tend to drift from their target index?

    Many thanks,

    Derek

    1. Derek,

      If you commit to the Perfect Portfolio you are committing to the long-term. I would say that if you put the positions you commit to the portfolio. If you're uncomfortable with that I would say stand aside.

      Also if you're not comfortable shorting the market just move into a cash position and out of that particular ETF. While this will degrade the overall performance it should keep you out of a lot of bear markets

      All the best,
      Adam

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