LAA (Lethargic Asset Allocation) — Tactical Asset Allocation Strategy
Low-maintenance allocation with a permanent 75% core (value stocks, gold, bonds) plus a 25% growth sleeve. The growth sleeve rotates to cash only when both unemployment rises and equities trend below their SMA. Monthly rebalancing.
Backtest Performance (1992-11-30 to 2026-04-07)
| Metric | LAA (Lethargic Asset Allocation) |
|---|---|
| Compound Annual Growth Rate (CAGR) | 10.8% |
| Maximum Drawdown | -19.4% |
| Sharpe Ratio | 1.08 |
| Sortino Ratio | 1.47 |
| Annualized Volatility | 10.0% |
| Calmar Ratio | 0.56 |
| Total Return | 2969.2% |
| Backtest Period | 33.4 years |
Strategy Details
- Type
- Tactical (TAA)
- Rebalancing
- monthly
- Risk Level
- moderate
- Variants
- 1
- Author
- Wouter J. Keller
Track LAA (Lethargic Asset Allocation) in Your Portfolio
Sign up for BestFolio to get monthly rebalancing signals, blend strategies into custom portfolios, and receive alerts when allocations change.