Investing (Boring But Profitable In A Long Term) Vs. Trading (Exciting But Risky In A Short Term): Here Is A Way To Enjoy Both

|
Includes: AMZN, BIDU, BND, BNDX, BWX, CMG, FDX, NFLX, SCHB, SCHC, SCHF, SCHP, SCHZ, TIP, VBTLX, VCIT, VEXAX, VICSX, VTABX, VTAPX, VTI, VTIP, VTSAX, VXF, VXUS
by: O. Young Kwon
Summary

Investors can enjoy short-term dynamic trading individual stocks, anchoring long-term winning portfolios allocating assets permanently.

Two long-term portfolios set up in 2014 at Vanguard and TIAA outperformed the market in the last four months.

For long-term investors and 401(k) and IRA investors, six investment templates at Charles Schwab and TD Ameritrade are introduced.

Short-term trading with three stocks in 2010-2011 and with commission-free ETFs in 2016 is illustrated.

Three virtues – Patience, optimism and diligence – make life fulfilled, as do investing successful.

There are three ways of handling our financial assets: One way is to invest money in a long term (perhaps in three years or longer), by setting reliable portfolios. The second one is to trade individual securities or exchange-traded funds in brokerage accounts. The third is a way of both - investing and trading - by allocating a major portion (say, 90%) in long-term portfolios and the balance in trading accounts.

A lion's share of investment results would be believed to come from the performance of long-term portfolios rather than short-term gains or losses incurred from security selection and market timing. The growth of well-diversified portfolios would be achieved along an upward market trend over a long time horizon, but it would be hardly recognized in a relatively short term.

The effects of compounding rates of returns on reinvested shares on long-term portfolios would accelerate after several years, perhaps five years or longer. As a result, during the period of accumulation of invested capital, investors must be patient by sticking to the originally planned course, without making erroneous abrupt changes. Investors must check the performance of portfolios and would make some necessary adjustments. But investors should not abandon the original plan when any unexpected market plunge would happen.

One of crucial factors to succeed long-run investing, regardless tax-deferred portfolios (such as 401k, IRAs or annuities) or regular portfolios, is to minimize annual cost by selecting lower expense ratios or lower trading commissions. A small difference such as 0.001% would make a big difference in a long run. Therefore, before investing, all details of costs should be very carefully figured out with all available information including load or unload, maintenance cost, etc.

The Vanguard Index-Fund Portfolio & The TIAA Intelligent Annuity Since 2014

In 2014, I took some of the family money from the Vanguard Group where the well-diversified index-fund portfolios had grown nicely in years. The reason was simply that I was concerned that too many investors had been piled up on index investing. That trend had been so strong that investors on Vanguard are not only traditional individual investors but also major institutional investors (such as pension funds and University endowments) and various hedge funds. I diversified both investment institutions and investment vehicles, by setting an Intelligent Annuity at the TIAA (previously the TIAA-CREF) and by selecting non-Vanguard funds, most of which are active funds rather than passive ones.

Table 1 and 2 show the components of Vanguard Index funds and TIAA variable annuity, their original permanent asset allocations, and their current allocations as of Oct. 28, 2016, respectively. Over longer than two years, no change has been made in their allocations. In Table I, Total Stock Market Index Fund and Total International Bond Index Fund are overweighted while other four funds are underweighted. In Table 2, TIAA-CREFT Life Stock Index Fund, Western Asset Variable Global High Yield Bond Portfolio and DFA VA Global Bond Portfolio are overweighted and other four Portfolios/Funds are underweighted.

Table 1: Vanguard Mutual Fund Portfolio

Allocation

Mutual Fund

Target

10/28/2016

Extended Market Index Fund (MUTF:VEXAX) (NYSEARCA:VXF)

30%

29.5%

Total Stock Market Index Fund (MUTF:VTSAX) (NYSEARCA:VTI)

30%

30.6%

Intermediate-Term Corporate Index Fund (MUTF:VICSX) (NASDAQ:VCIT)

10%

13.2%

S-T Inflation Protected Securities Index Fund (MUTF:VTAPX) (NASDAQ:VTIP)

10%

6.3%

Total Bond Market Index Fund (MUTF:VBTLX) (NASDAQ:BND)

10%

7.4%

Total International Bond Index Fund (MUTF:VTABX) (NASDAQ:BNDX)

10%

13.0%

TOTAL

100%

100.0%

Note: The over-weighted components are highlighted.

Table 2: TIAA Intelligent Variable Annuity

Allocation

Account (Portfolio or Fund)

Target

10/28/2016

T. Rowe Price Limited-Term Bond Portfolio

16%

15.3%

Templeton Developing Markets VIP Fund

8%

8.1%

Newberger Berman AMT Mid Cap Intrinsic Value Portfolio

16%

15.7%

Newberger Berman AMT Large Cap Intrinsic Value Portfolio

16%

15.3%

TIAA-CREFT Life Stock Index Fund

20%

21.0%

Western Asset Variable Global High Yield Bond Portfolio

8%

8.9%

DFA VA Global Bond Portfolio

16%

15.7%

TOTAL

100%

100.0%

Note: The over-weighted components are highlighted.

Annuities, however, are not ordinary investment instruments, but sticky contracts with insurance companies, even though invested through your mutual-fund company such as Vanguard or brokerages such as Charles Schwab (NYSE:SCHW). A columnist at Forbes magazine, Ken Fisher, warns:

In reality, annuities are complex investment vehicles that don't always provide the simple 'safety' they often promise. They typically have high costs, complex restrictions and other risk that could offset the potential benefits. While annuities may not be risky at first glance, they may not be best way to limit the risk of losing money." (Annuity Insights, Fisher Investments, p.1)

For last four months from Jun.30, 2016 to Oct. 28, 2016, Vanguard Portfolio ("VMF") and TIAA Annuity ("TVA") outperformed the Dow Jones Industrial Average ("DOW") and the S&P 500 Stock Index ("S&P"), as shown in Table 3. VMF and TVA grew 3.28% and 1.35%, respectively, outperforming Dow (1.29%) and S&P (1.31%).

Table 3: Performance Comparison: Portfolio vs. S&P 500 Stock Index

Daily Percent Change

Cumulative Percent Change

DATE

DOW

S&P

DOW

S&P

VMF

TVA

DOW

S&P

VMF

TVA

6/30/2016

17,929.99

2,098.85

*

*

*

*

*

*

*

*

7/15/2016

18,516.55

2,161.74

3.22%

2.95%

2.13%

2.65%

3.22%

2.95%

2.13%

2.65%

7/29/2016

18,432.24

2,173.60

-0.46%

0.55%

0.91%

0.38%

2.76%

3.50%

3.04%

3.03%

8/31/2016

18,454.30

2,176.12

0.12%

0.12%

0.32%

0.79%

2.88%

3.62%

3.36%

3.81%

9/30/2016

18,308.15

2,168.27

-0.80%

-0.36%

0.36%

0.49%

2.09%

3.25%

3.72%

4.31%

10/14/2016

18,138.38

2,132.98

-0.93%

-1.64%

-1.69%

-1.14%

1.16%

1.61%

2.03%

3.17%

10/21/2016

18,138.38

2,132.98

0.00%

0.00%

0.00%

0.00%

1.16%

1.61%

2.03%

3.17%

10/28/2016

18,161.94

2,126.46

0.13%

-0.31%

1.25%

-1.81%

1.29%

1.31%

3.28%

1.35%

Note: The percent change formula: 200*(B-A)/(B+A)

Six Long-Term Portfolio Templates With Charles Schwab ETFs & TD Ameritrade ETFs

For Long-term (in three years or longer) investors, six portfolio templates with six Charles Schwab ("CS") ETFs and six TD Ameritrade ("TD") ETFs:

· Six CS ETFs: Schwab U.S. Broad Market ETF (NYSEARCA:SCHB), Schwab International Small-Cap Equity ETF (NYSEARCA:SCHC), Schwab International Equity ETF (NYSEARCA:SCHF), Schwab U.S. Aggregate Bond ETF (NYSEARCA:SCHZ), Schwab U.S. TIPS ETF (NYSEARCA:SCHP) and SPDR Barclays International Treasury Bond ETF (NYSEARCA:BWX).

· Six TD ETFs: Vanguard Total Stock Market ETF, Vanguard Extended Market ETF, Vanguard Total International Stock ETF (NASDAQ:VXUS), Vanguard Total Bond Market ETF, iShares TIPS Bond ETF (NYSEARCA:TIP) and Vanguard Total Int'l Bond ETF.

Three CS Portfolios:

· CS.A: SCHB (50%) SCHZ (50%)

· CS.B: SCHB (30%) SCHC (15%) SCHZ (40%) BWX (10%)

· CS.C: SCHB (30%) SCHC (15%) SCHF (5%) SCHZ (30%) SCHP (15%) BWX (5%)

Three TD Portfolios:

· CS.A: VTI (50%) BND (50%)

· CS.B: VTI (30%) VXF (15%) BND (40%) BNDX (10%)

· CS.C: VTI (30%) VXF (15%) VXUS (5%) BND (30%) TIP (15%) BNDX (5%)

Table 4 exhibits data of six CS ETFs, and so does Table 5 data of six TD ETFs. Note that SCHB and SCHZ (in Table 4) are coupled, so did VTI and BND (in Table 5) as highlighted in the column of "Daily Percent Change." Usually, stock ETFs (SCHB and VTI) and bond ETFs (SCHZ and BND) are decoupled, meaning one is up and the other is down. During last four months, both stock ETFs and bond ETFs have moved together.

In a normal situation when one investment vehicle (either stocks or bonds) has become more advanced than the other, investors rebalance their portfolios, by selling overweighted one and buying underweighted one. As a result, bond ETFs and stock ETFs become decoupled. The reasons for the current coupling would be investors are cautious due to the mounting uncertainties about the U.S. election, the possibility of the Fed's rate increases and the global economy after the Brexit vote. Investors seem to sell both stocks and bonds whenever they move up, to raise more cash.

Table 4: S&P 500 & Charles Swab ETF Data

CS ETF

Daily Percent Change

CS ETF

DATE

S&P

SCHB

SCHZ

S&P

SCHB

SCHZ

SCHC

SCHP

SCHF

BWX

6/30/2016

2,098.85

50.32

53.72

*

*

*

28.80

56.48

27.10

28.58

7/29/2016

2,173.60

52.29

53.92

3.50%

3.84%

0.37%

30.33

56.89

28.21

28.90

8/31/2016

2,176.12

52.40

53.73

0.12%

0.21%

-0.35%

30.07

56.65

28.38

28.57

9/30/2016

2,168.27

52.32

53.33

-0.36%

-0.15%

-0.75%

30.88

57.08

28.79

28.84

10/14/2016

2,132.98

51.41

53.18

-1.64%

-1.75%

-0.28%

29.95

56.48

28.08

27.78

10/21/2016

2,141.16

51.62

53.33

0.38%

0.41%

0.28%

30.21

56.82

28.34

27.79

10/28/2016

2,126.46

51.15

53.06

-0.69%

-0.91%

-0.51%

29.73

56.57

28.16

27.60

Note: The percent change formula: 200*(B-A)/(B+A)

Table 5: S&P 500 & TD Ameritrade ETF Data

TD ETF

Daily Percent Change

TD ETF

DATE

S&P

VTI

BND

S&P

VTI

BND

VXF

TIP

VXUS

BNDX

6/30/2016

2,098.85

107.16

84.30

*

*

*

85.42

116.66

44.48

55.69

7/29/2016

2,173.60

111.42

84.64

3.50%

3.90%

0.40%

89.97

116.92

46.49

56.10

8/31/2016

2,176.12

111.65

84.21

0.12%

0.21%

-0.51%

90.73

116.04

46.70

56.09

9/30/2016

2,168.27

111.33

84.14

-0.36%

-0.29%

-0.08%

91.27

116.49

47.21

56.04

10/14/2016

2,132.98

109.37

83.27

-1.64%

-1.78%

-1.04%

88.63

115.43

46.15

55.40

10/21/2016

2,141.16

109.80

83.64

0.38%

0.39%

0.44%

89.10

116.13

46.69

55.55

10/28/2016

2,126.46

108.82

83.10

-0.69%

-0.90%

-0.65%

87.37

115.64

46.27

55.23

Note: The percent change formula: 200*(B-A)/(B+A)

Table 6, 7, and 8 are the results of back testing for two-component portfolios (TD.A & CS.A), four-component portfolios (TD.B & CS.B), and six-component portfolios (TD.C & CS.C), respectively. All six portfolios - three TD Portfolios (0.10%) and three CS Portfolios (0.56%) - under-performed vis-a-vis DOW (1.29%) and S&P (1.31%) with a somewhat significant margins. CS portfolios (0.56%) are better than TD ones (0.10%) on average. In CS portfolios, CS.B (0.85%) was better than CS.B (0.66%) and CS.A (0.16%). In TD portfolios, TD.C (0.41%) was better than TD.B (-0.02%0 and TD.A (-0.11%).

For long-term investors, investing time would not matter too much. This time would be one of good times when the markets are relatively soft. If you are 401 contributors, or you continue to build your IRAs or portfolios from time to time, these six Portfolios Templates save commissions because six CS ETFs and six TD ETFs are commission-free. (TD ETFs has one restriction, by charging a 2.99% commission when selling your holding before one month.)

Table 6: Performance Comparison: TD.A & CS.A vs. S&P 500 Stock Index

Daily Percent Change

Cumulative Percent Change

DATE

DOW

S&P

DOW

S&P

TD.A

CS.A

DOW

S&P

TD.A

CS.A

6/30/2016

17,929.99

2,098.85

*

*

*

*

*

*

*

*

7/29/2016

18,432.24

2,173.60

2.76%

3.50%

2.46%

2.47%

2.76%

3.50%

2.46%

2.47%

8/31/2016

18,454.30

2,176.12

0.12%

0.12%

0.04%

-0.37%

2.88%

3.62%

2.50%

2.10%

9/30/2016

18,308.15

2,168.27

-0.80%

-0.36%

-0.01%

0.31%

2.09%

3.25%

2.49%

2.41%

10/14/2016

18,138.38

2,132.98

-0.93%

-1.64%

-1.67%

-1.64%

1.16%

1.61%

0.83%

0.77%

10/21/2016

18,138.38

2,132.98

0.00%

0.00%

0.31%

0.29%

1.16%

1.61%

1.14%

1.06%

10/28/2016

18,161.94

2,126.46

0.13%

-0.31%

-1.24%

-0.89%

1.29%

1.31%

-0.11%

0.16%

Note: The percent change formula: 200*(B-A)/(B+A)

Table 7: Performance Comparison: TD.B & CS.B vs. S&P 500 Stock Index

Daily Percent Change

Cumulative Percent Change

DATE

DOW

S&P

DOW

S&P

TD.A

CS.A

DOW

S&P

TD.B

CS.B

6/30/2016

17,929.99

2,098.85

*

*

*

*

*

*

*

*

7/29/2016

18,432.24

2,173.60

2.76%

3.50%

2.17%

2.12%

2.76%

3.50%

2.12%

2.76%

8/31/2016

18,454.30

2,176.12

0.12%

0.12%

-0.14%

-0.07%

2.88%

3.62%

1.98%

2.70%

9/30/2016

18,308.15

2,168.27

-0.80%

-0.36%

-0.19%

-0.44%

2.09%

3.25%

1.79%

2.25%

10/14/2016

18,138.38

2,132.98

-0.93%

-1.64%

-1.41%

-1.03%

1.16%

1.61%

0.37%

1.22%

10/21/2016

18,138.38

2,132.98

0.00%

0.00%

0.00%

0.00%

1.16%

1.61%

0.37%

1.22%

10/28/2016

18,161.94

2,126.46

0.13%

-0.31%

-0.36%

-0.37%

1.29%

1.31%

0.02%

0.85%

Note: The percent change formula: 200*(B-A)/(B+A)

Table 8: Performance Comparison: TD.C & CS.C vs. S&P 500 Stock Index

Daily Percent Change

Cumulative Percent Change

DATE

DOW

S&P

DOW

S&P

TD.C

CS.C

DOW

S&P

TD.C

CS.C

6/30/2016

17,929.99

2,098.85

*

*

*

*

*

*

*

*

7/29/2016

18,432.24

2,173.60

2.76%

3.50%

2.38%

2.42%

2.76%

3.50%

2.38%

2.42%

8/31/2016

18,454.30

2,176.12

0.12%

0.12%

-0.04%

-0.26%

2.88%

3.62%

2.34%

2.16%

9/30/2016

18,308.15

2,168.27

-0.80%

-0.36%

0.09%

0.38%

2.09%

3.25%

2.42%

2.54%

10/14/2016

18,138.38

2,132.98

-0.93%

-1.64%

-1.61%

-1.56%

1.16%

1.61%

0.82%

0.98%

10/21/2016

18,145.71

2,141.16

0.04%

0.38%

0.49%

0.48%

1.20%

2.00%

1.31%

1.46%

10/28/2016

18,161.94

2,126.46

0.09%

-0.69%

-0.90%

-0.81%

1.29%

1.31%

0.41%

0.66%

Note: The percent change formula: 200*(B-A)/(B+A)

My current market prospects are highly optimistic, optimistic and cautiously optimistic in three years or longer, in one-Three years and in less than one year, respectively.

In three years or longer, the short-term Fed rate, the inflation rate and the real (inflation-adjusted) Gross Domestic Product (GDP) growth rate would be 2.5%, 2.5% and 2%, respectively. (The nominal GDP growth rate would be a 4.5%.) In other words, the low-rates-and low-growth environment would continue. A recession would be three years away at least. The 9.5 year bull market (in 2019) would be expected to continue to run, not reaching a market peak yet.

However, there would be one caveat: There would be three political events which have a tail risk - the failure of British exit negotiations with the European Union, the anti-globalization and trade war due to the outcomes of the U.S. election in November, and the elections of France and Germany in 2017, and the unthinkable aggressions of the CRIN - China, Russia, Iran and North Korea. The probability of all three events would be extremely low, but if it would occur its consequence would be massively destructive.

The current recovery started from on June, 2009 cannot continue forever. But a coming recession would be a garden-variety (or an inventory-correction) one which would be mild and short-lived, perhaps less than fifteen months.

In 1-3 years, the U.S economy would grow 2.5%, inflation would remain around the Fed's targeting rate (2%), and corporate earnings would hold up. Global economy would improve. Banks' earnings would continue to increase as the Treasury yield curve would continue to be stiffer and convex.

In less than one year, however, the market perspective would be murky due mainly to the current presidential race. The market currently becomes jittery as the unprecedented last-minute noises and changes in polls are headlined. Shrugging off political outcome which would not affect the economy quite significantly, businesses and consumers would continue to be productive and confidence. The Fed, as an unofficial global central bank, would make one rate increase (0.25%) for the coming twelve months.

The determinants of Fed's rate hikes would be the degree of dollar's strength and the individual interest-rate differentials between the U.S. and major trade partners, including the euro zone, China, Japan, Germany and the U.K.

We are better to make passive investing in a long run with permanent allocations, but we should be an active trader in a shorter term to take an advantage from the market volatility only if we can a right guide. For short-term profitable trading, two records of mine will be discussed.

Trading Record I: Trading Three "Tigers" in 2010-2011

In 2010-2011, three stocks - Baidu, Inc. (NASDAQ:BIDU), Chipotle Mexican Grill, Inc. (NYSE:CMG) and Netflix, Inc. (NASDAQ:NFLX) - were chosen for my frequent trading. The time was a swift upswing from a sharp stock-market bottom on March 2009 (when the current long bull market started). These three "tigers" made me happy by showing the profitable trades in very short terms. My two trading accounts provided a low commission ($2.95%) or promotional free trades as shown in Table 9.

The records reveal 33 two-way transactions on three tigers, paying a $2.65% (of two-way commission), gaining a 6.60% for only 14 days on average. It was a great performance. All trades were primarily guided by the STOCK Model of the TANER System: At that time the number of stocks was 40, including CMG and NFLX, but the current STOCK Model has only 20 stocks just including BIDU only.

What would be tigers in the current STOCK Model (20 stocks)? They would be Amazon.com, Inc. (NASDAQ:AMZN), The Boeing Company (NYSE:BA) and FedEx Corporation (NYSE:FDX). NFLX would be still a tiger, but it is not included in the current STOCK Model.

Table 9: The Short-Term Trading BIDU, CMG & NFLX ("Tigers)

SYMB

B DATE

B PRICE

S DATE

S PRICE

COMM

G/(NYSE:L) %

#DAY

NFLX

6/3/2010

$112.78

6/10/2010

$119.02

$0.00

5.50%

7

NFLX

7/8/2010

$116.78

7/12/2010

$119.64

$0.00

2.40%

4

NFLX

7/20/2010

$117.13

7/21/2010

$123.25

$5.90

3.50%

1

NFLX

7/23/2010

$103.08

7/23/2010

$108.64

$5.90

4.20%

0

NFLX

7/26/2010

$102.40

7/27/2010

$104.67

$5.90

1.60%

1

NFLX

7/28/2010

$102.59

7/30/2010

$101.65

$0.00

-0.90%

2

NFLX

7/29/2010

$96.66

7/30/2010

$101.65

$0.00

5.20%

1

NFLX

8/2/2010

$101.46

8/4/2010

$106.85

$0.00

5.30%

2

NFLX

8/5/2010

$106.58

8/5/2010

$108.52

$0.00

1.80%

0

NFLX

8/6/2010

$108.90

8/10/2010

$124.25

$0.00

14.10%

4

NFLX

8/17/2010

$134.94

11/22/2010

$183.85

$5.90

36.00%

97

NFLX

8/18/2010

$129.00

11/29/2010

$194.93

$5.90

50.90%

103

NFLX

8/23/2010

$128.56

9/1/2010

$130.78

$0.00

1.70%

9

NFLX

8/31/2010

$122.60

9/1/2010

$130.78

$0.00

6.70%

1

NFLX

9/10/2010

$146.70

9/13/2010

$148.71

$0.00

1.40%

3

NFLX

9/14/2010

$146.87

9/22/2010

$152.60

$2.95

3.70%

8

NFLX

9/28/2010

$161.81

9/29/2010

$164.21

$5.90

1.20%

1

NFLX

9/30/2010

$167.68

10/21/2010

$173.06

$5.90

2.90%

21

NFLX

9/30/2010

$163.03

10/26/2010

$173.99

$5.90

6.30%

26

NFLX

10/1/2010

$159.99

10/21/2010

$170.97

$4.95

6.60%

20

NFLX

10/28/2010

$174.41

11/10/2010

$175.84

$5.90

0.50%

13

CMG

2/2/2010

$99.99

3/1/2010

$107.39

$0.00

7.40%

27

CMG

9/9/2010

$163.19

9/10/2010

$164.44

$0.00

0.80%

1

CMG

9/29/2010

$176.07

10/5/2010

$177.50

$5.90

0.50%

6

CMG

10/28/2010

$210.50

11/4/2010

$222.29

$5.90

5.30%

7

CMG

12/6/2010

$235.53

12/7/2010

$241.52

$0.00

2.50%

1

BIDU

2/9/2010

$439.90

3/8/2010

$534.50

$0.00

21.50%

27

BIDU

7/12/2010

$71.06

7/13/2010

$73.31

$0.00

3.20%

1

BIDU

8/5/2010

$85.73

8/10/2010

$87.89

$0.00

2.50%

5

BIDU

10/6/2010

$102.30

10/18/2010

$102.55

$3.84

0.10%

12

BIDU

10/6/2010

$102.30

10/18/2010

$104.68

$3.84

2.20%

12

BIDU

10/6/2010

$102.30

10/22/2010

$107.75

$3.54

5.20%

16

BIDU

10/6/2010

$102.30

10/25/2010

$109.62

$3.54

7.00%

19

33

P/(L)

TRADINGS

MEAN

$2.65

6.60%

14

Trading Record II: Trading Charles Schwab Free-Commission ETFs

Nowadays, my trading has been less aggressive as being in a late stage in my retired years. But when we invest a major portion of our money with portfolios in a long haul (say, five years or longer) with permanent asset allocation as I do, the market volatility in both short term as well as long term (less than five years) can be ignored. This would be a protection measure to avoid mistakes affected any short-term market threats. But it would lose opportunities to get gains, by trading securities in shorter time frame.

A strict rule of short-term trading has been made: (1) The maximum allocation of funds into two trading accounts: 10% of the total capital. (2) The maximum bet: 1% of the total capital. (3) The minimum rate of profit: 0.15% (which is a 6.08% per year). Table 10 summarizes the trading results of 27 two-way transactions with commission-free Charles Schwab ETFs: The average gain and invested days were 1.01% (which is a 41% per year!) and 9 days, respectively.

Table 10: The Short-Term Trading Charles Schwab ETFs

SYMB

B DATE

B PRICE

S DATE

S PRICE

COMM

G/(L) %

#DAY

BWX

4/27/2016

$55.16

4/28/2016

$56.10

$0.00

1.71%

1

RYT

4/29/2016

$80.66

5/20/2016

$91.49

$0.00

3.12%

22

RTM

5/2/2016

$85.53

6/6/2016

$86.73

$0.00

1.40%

37

SCHH

5/7/2016

$41.00

6/7/2016

$41.12

$0.00

0.30%

28

RGI

5/12/2016

$87.60

5/17/2016

$88.54

$0.00

1.08%

5

RYF

5/19/2016

$42.39

5/20/2016

$42.89

$0.00

1.17%

1

RYE

5/27/2016

$54.56

5/31/2016

$55.30

$0.00

1.36%

4

RYE

6/2/2016

$54.41

6/6/2016

$56.09

$0.00

4.53%

4

RYH

6/7/2016

$152.58

7/7/2016

$153.63

$0.00

0.69%

30

SCHC

6/9/2016

$30.06

6/23/2016

$30.32

$0.00

0.88%

14

SCHM

6/24/2016

$41.47

6/30/2016

$41.82

$0.00

0.84%

6

RTM

6/24/2016

$84.60

7/8/2016

$85.12

$0.00

0.62%

14

SCHH

8/3/2016

$44.50

8/9/2016

$44.60

$0.00

0.24%

6

RSP

8/10/2016

$83.68

8/15/2016

$84.33

$0.00

0.78%

5

SCHH

8/11/2016

$44.09

8/12/2016

$44.42

$0.00

0.75%

1

RSP

8/16/2016

$84.06

8/22/2016

$84.83

$0.00

0.92%

6

SCHE

8/16/2016

$23.21

9/6/2016

$23.48

$0.00

1.13%

21

SCHH

8/24/2016

$43.35

8/26/2016

$43.74

$0.00

0.90%

2

RSP

8/26/2016

$83.86

8/29/2016

$84.29

$0.00

0.51%

3

SCHF

8/29/2016

$28.50

9/2/2016

$28.28

$0.00

1.35%

4

RSP

9/9/2016

$82.84

9/26/2016

$82.96

$0.00

0.15%

17

RYF

9/21/2016

$31.22

9/29/2016

$31.24

$0.00

0.08%

8

RYH

9/26/2016

$155.98

9/27/2016

$156.67

$0.00

0.45%

1

RSP

9/30/2016

$83.26

9/30/2016

$83.77

$0.00

0.62%

0

RYF

9/30/2016

$31.02

9/30/2016

$31.31

$0.00

0.93%

0

RSP

10/4/2016

$82.77

10/5/2016

$83.16

$0.00

0.47%

1

SCHH

10/5/2016

$40.67

10/10/2016

$40.74

$0.00

0.17%

5

27

P/

TRADINGS

MEAN

$0.00

1.01%

9

A way of investing, having both long-term woe-free portfolios with permanent asset allocations and short-term profit generating trading accounts, has become available finally, thanks principally to internet revolution, no or low commissions and near-zero expense ratios of mutual funds.

Three virtues - Patience, Optimism, and Diligence - make investing successful as do life fulfilled eventually.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.