If working harder is not going to get us to our financial goals,
then how do we transition to get money to work hard for us?
- Compounded Returns on low acceptable drawdowns are what matters most. To accomplish this principle, losses must be minimized.
- An effective strategy needs to be able to create returns whether we are in growth or recession, inflation or deflation.
- There are times to be defensive and hold a strong allocation to cash and more defensive asset-classes, and there are times when aggressive allocation to stocks is smart when the backdrop is an optimal environment.
“Holding cash may be uncomfortable but it's never as uncomfortable as doing something stupid!”
- Warren Buffett
In our upcoming High-Yield Strategy Masterclass we are going to teach you how to create portfolios that meet these time-tested principles.
What is the Diversified High Yield Portfolio?
- Conservative gains with relatively low risk
- Lower octane simple version of our total PSL portfolio
- Bond models that are utilized along with higher yielding vehicles to enhance risk-adjusted return in various asset classes.
- Portfolios that have beaten both the S&P and world index in terms of both average annual returns and in terms of risk by cutting drawdowns more than 2/3 real-time after multiple bull and bear market experience.
- This strategy is one of the rocks of our long-term outperformance.
- This is one of the best strategies for retirement accounts and assets.
- The PSL diversified high yield portfolio remains our best effort for conservative investors wanting consistent low double-digit returns with relatively low risk.
In the period ahead, volatility is likely still historically high, so even conservative high-yield investors may have to stomach higher than normal volatility to eke out gains ahead. However, we believe our strategies can continue to build gains through both good markets and bad, just as we did in prior bear markets and at build-ups to prior cyclical tops. Which is why we're teaching this LIVE this month! Click the link below to signup.
The HIGH YIELD DIVERSIFIED PORTFOLIO is My SURPLUS STRATEGY!
- The real-time “Fully Diversified High Yield Fund” Model portfolio has shown gains in every year since 1992 and has shown a 10.5% average annual return on a maximum drawdown under 12%.
- The portfolios have beaten both the S&P and world index in terms of both average annual returns and in terms of risk by cutting drawdowns more than 2/3 real-time after multiple bull and bear market experience over the last 27 years real-time.
Some of the theory behind Fully Diversified High Yield Fund (HYLD)
- Gann’s theories of market behavior
- ALWAYS use risk-limits to protect against the downside of any trade
- ALWAYS build a surplus – take ½ or a portion of your gains each year and put them into conservative investments and strategies
- These concepts are imbedded in the Fully Diversified High Yield Fund (HYLD)
- Harry Browne and the Permanent Portfolio and accounts for economic cycles
Important components
- October 2021 allocation to all high yield portfolios is 10% of overall model PSL portfolio and allocations subject to change based on market conditions
- Market timing models
- Cyclical selection models
- Stock, bond, gold, commodity and currency models
- Trailing stops and entry patterns
- Allocation by risk
Simplified High Yield Fund
- Based on the Fully Diversified High Yield Fund (HYLD) strategy
- October 2021 allocation to all high yield portfolios is 10% of overall model PSL portfolio and allocations subject to change based on market conditions
- Created for investors who have smaller accounts but still want the benefits of the full HYLD in their portfolios
- Ideal for account sizes between $5,000 and $25,000
- Larger drawdown, lower average annual returns than the Fully Diversified High Yield Fund (HYLD) and less consistent returns
Simple Asset Allocation Model
- Created based on the client requests
- Meant to serve as an asset allocation model
- October 2021 allocation to all high yield portfolios is 10% of overall model PSL portfolio and allocations subject to change based on market conditions
- An even more refined model for clients who have limitations they need to manage
- Used in retirement accounts where there are limitations on using stops
- ONLY USE if you have stop limitations in your account
- No minimum account size or start with $5,000
- Larger drawdown, lower average annual returns than the Fully Diversified High Yield Portfolio (HYLD) and less consistent returns
When to implement each High Yield Portfolio option?
- Starting today, simply invest in the option that best fits you. The trailing stops will protect you, should the market turn
- If you want to be more conservative, you can phase in 50% of the allocation, in the first month and add over additional months, until you get to the full portfolio size
- Remember that...
- Your track record may be different, depending on the date you started to invest funds
- Ideal time to place trades is right after the PSL is published each month, so that you can track the performance of the trade, as intended
- There is ramp up time that is required, if you phase in the portfolio
- You need to be able to withstand the normal maximum drawdown to be able to carve out the average annual returns
Included in this workshop:
- Access to slack for questions & peer discussion $495 Value
- Access to the prerequisite lesson recording: PSL Diversified High Yield Portfolio $995 Value
- Learn how to implement the High Yield Portfolio $10,000 Value
- Access to Office Hour session $1,500 Value
- Access to the recordings until 2/28/23 $1,995 Value
Class Schedule:
- January 10th at 11 AM - 3 PM CT
- January 16th at 2 - 3 PM CT – Office Hour
- January 26th at 11 AM - 3 PM CT
