Mebane Faber devised a simple strategy described in his book, "The Ivy Portfolio", which uses 5 asset classes with 20% of the total portfolio allocated to each asset class. Read it on your tablet for only $8.99. You don't need a Kindle - just download the Kindle software for your Android device here or your iPad here.
The 20% is either invested in the respective asset class or kept in cash. The 5 ETFs used are:
US Stocks (VTI)
Foreign Stocks (VEU)
10 Year Government Bonds (IEF)
Real Estate (VNQ)
An asset class is bought when the monthly price is greater than 10-month smoothed moving average (SMA). An asset class is sold and moved to cash when monthly price is less than the 10-month SMA.
All entry and exit prices are on the day of the signal at the close. The model is only updated once a month on the last day of the month. Price fluctuations during the rest of the month are ignored.
Strategy ETF Charts