100 Level

Six Investing Basics

1.  Save 2.  Index 3.  Diversify 4.  Cut Costs 5.  Rebalance 6.  Monitor Save:  Follow "The Golden Rule of Investing."  There is no substitute for saving and living below your means. Save early in life and do it frequently. Index:  Use index funds or index ETFs.  Avoid picking individual stocks unless you are an expert.  Even most experts cannot do it successfully.  Remember, … [Read More...]

Quotes From “Millionaire Teacher”

The following five quotes come from Andrew Hallam's book, Millionaire Teacher. 1) Index fund investing will provide the highest statistical chance of success, compared with actively managed mutual fund investing. 2) Nobody yet has devised a system of choosing which actively managed mutual fund will consistently beat stock market indexes.  Ignore people who suggest otherwise. 3) … [Read More...]

300 Level

Bohr Portfolio Review: 18 July 2012

Time to update the Bohr Portfolio, one of the six portfolios that are not part of the ITA Risk Reduction model test.  Nevertheless, I am using some of the exponential moving average data in an attempt to reduce risk to this portfolio.  This week I picked up shares of VO and VB, but not enough to bring these blend asset classes back into balance.  I'm still not completely … [Read More...]

Return/Risk Optimization of Harry Browne’s “Permanent Portfolio”

The "Permanent Portfolio" developed by Harry Brown leaves quite a bit to be desired when one optimizes for the highest Return/Risk ratio.  The four ETFs selected for stocks, bonds, gold, and cash are VTI, BIV, GTU, and SHY respectively.  There are other choices to represent these asset classes, but these four are the ones I selected for this analysis. … [Read More...]

200 Level

Portfolio Performance: 9 September 2011

The first full week in September was a mixed bag.  For starters, the market was down when measured by the VTSMX.  Several portfolios gained ground with respect to the ITA Index, our customized benchmark.  A few portfolio picked up fractions of a percentage point on the VTSMX.  A few also showed stronger Sortino ratios while others declined in value. Below is the performance … [Read More...]

Going Wobbly On Equities

With the market hovering around all-time highs, perhaps it is time to "go wobbly" on equities.  What might a 20-ETF portfolio look like if the bond requirement were elevated to 30% of the portfolio.  The following is not an operational portfolio, but a sample of securities one might use to build a well-diversified portfolio. Efficient Frontier:  One ETF stands out in the following graph and it … [Read More...]

400 Level

Working With The Basic Portfolio

Eventually I plan to move more of the ITA portfolios toward the following 20 ETFs.  In some portfolios I need to broaden the diversification and in others I need to reduce the number of securities in an effort to simplify.  Reducing cost is another motivation as all but two of the following ETFs can be purchased free if one is a TD Ameritrade client.  The two exceptions are GTU and VHT.  In this … [Read More...]

Bullish Percent Indicator Update

In the Bullish Percent Indicator data table below, I want to draw your attention to several features.  1) Look at the latest data in the 06/01/12 row.  The left-hand number, 46.62, is the most important as that indicates the percent of stocks in the NYSE that are generating a bullish PnF graph. [Next time I will include the headers or titles in the screen shot.]  That percent … [Read More...]