The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: Portfolio Advice/Help Date:  3/22/2019  11:50 PM
Author:  Rayvt Number:  92622 of 96351

AJ already mentioned the couch potato portfolio, another term used is "lazy portfolio". Here's a set you can look through to see how they're built ...

If you are willing to do the work to run a Couch Potato portfolio, I think you'd be better off putting that same effort into Gary Antonacci’s Dual Momentum Global Equities Momentum (GEM) strategy.

In both CP and GEM you just make one decision and (perhaps) one portfolio adjustment a year. The thing that I find really attractive about GEM is that it is self-timing--it inherently switches you over from stocks to bonds when stocks are doing bad.

For wealth building, bonds are a performance drag so you generally don't want to have anything in bonds but everything in stocks. But sometimes you DON'T want to be in stocks.

Well, okay, you need to run the GEM rules every month and not just once a year. But most of the time the rules just tell you to stand pat; no need to make any changes. My wife does this with the grandkids' accounts--takes her about 5 minutes each month.

Good writeup on the rules and some issues with GEM here:

Gary's response to that article here:

Funny thing about "couch potato" "lazy" portfolio is that you *still* have to do a bunch of work in picking out which lazy strategy you want to use. That marketwatch article lists 8 strategies--but oddly doesn't mention the original Couch Potato made popular by Scott Burns.
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us