Asset Allocations

AugurMax Asset Allocation Changes 2020-10-31

A reallocation to stocks from bonds characterizes the shift at 2020-10-31 as stocks increased a hefty twenty-two percentage points and bonds were reduced six percentage points.  Within equities, there were sizable moves  out of Canadian stocks and into Australia and Emerging Markets.  US stocks also gained as both UK and continental European equities were defunded.  UK and Canadian stocks now represent substantial shorts.  Much of the equity increase was sourced from US Treasuries — typically a safe haven — which fell almost 18 percentage points.  Tips however, remain a big bet and now represent the biggest allocation.  AugurMax does not explicitly incorporate inflation forecasts, but the big Tips bet may indirectly portend higher inflation.  While currencies were unchanged overall, the allocation to the Mexican Peso increased bringing its allocation to zero.  Concurrently, the Aussie dollar dropped to a sizable short.  Commodities overall are now short caused by a double digit gold decrease.  These asset allocation changes are largely influenced by our ECO methodology and performance results on stand-alone assets like gold and others are shown here.