The ETF Retirement Portfolio is managed using a George Dagnino variant model where an initial BUY is made if the price is above the long term moving average on the last day of the month, and a SELL is made if the price is below the long term moving average on the last day of the month.
There are four changes to the portfolio to be applied July 1:
- BUY the ETF EDV (world extended duration treasuries)
- BUY the ETF EMB (emerging markets bonds)
- BUY the ETF VCLT (long term 20+ year treasuries)
- SELL the ETF GLD (gold)
I would encourage you to be cautious of these changes (see my previous post to the OTM investing web page summarizing June market activity). Money is looking for a place to go in this low-yield environment, but the underlying risk factors of bond (and especially long term bond) investing are very real in this environment where inflation is an ever-present threat. Consider the purchase of these bond funds to be more tactical than strategic.