Strategies

This model is hedged if global markets tank

by Matthew MacClary|Published July 9, 2012

July finds the model account holding half of its value in a 50/50 portfolio of long bonds with the iShares Trust Barclays 20+ Year Treasury Bond fund (TLT) and SPDR S&P 500 ETF Trust (SPY) exchange traded funds.

This balanced portfolio is complemented by defensive positions in the ProShares UltraShort FTSE China 25 (FXP) and the ProShares UltraShort DJ-UBS Crude Oil (SCO) ETFs. These two holdings tend to increase in value when global equity markets stumble.

AUTHOR

Matthew MacClary

My work as a software engineer at a technology corporation helps me to take a methodical approach to my investing. I have run portfolios since college, first focusing on tech and growth stocks, then moving to a Buffet-style value approach before settling on my current quantitative method that allows me to seek strong returns while taking on less risk.

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