100 Level

Asset Allocation or Risk Parity

A Platinum member sent the following summary of an article and asked me to comment.  Note that my response is framed in the context of constructing portfolios through the use of a strategic asset allocation plan.  The Dashboard of the Curie Portfolio, posted this morning, is an example.  The second part is tied to future performance forecasts using software, Quantext Portfolio Planner (QPP).  Here … [Read More...]

Optimizing Dividend Stocks

Here is my optimization analysis on a 12-Dividend portfolio made up of individual stocks.  It might be interesting to look at a portfolio made up of 20 to 30 individual stocks. I like the 9.0 projected return and the high Return/Risk ratio.  A yield of 2.7% is also quite respectable. Do these results match others who are using this optimizer in conjunction with the QPP software? … [Read More...]

300 Level

Bohr Portfolio Update: 24 September 2012

Several changes took place in the Bohr Portfolio since the last update.  I sold shares of VOT in order to bring mid-cap growth into balance.  I also sold a few shares of VTV, but large-cap value is still 1.1% above target.  Cash from these sales was used to purchase VWO, PCY, and DBC.  Emerging markets and commodities are within target limits, but I still need to pick up more … [Read More...]

Keeping It Simple With An Global Nine ETF Portfolio

A portfolio does not need to be complicated to be global in its structure.  Nor does it need to be all that complex to bring success to the investor.  The following portfolio is simple and stands a greater chance of success if one employs the Momentum-Optimization Model (MOM) as explained below. This material is not available for publication elsewhere on the Internet. … [Read More...]

200 Level

Portfolio Stress Test: Part I

Stress Testing the Curie Portfolio Investors experienced a traumatic year in 2008 and it will likely happen again.  Are you prepared to deal with the risk? In the next two blog entries I will walk readers through a portfolio stress test using the Curie Portfolio.  To work through this analysis, I will use the Monte Carlo software, Quantext Portfolio Planner (QPP).  Most of you are … [Read More...]

Running Out of Money In Retirement

A few months ago I posted a blog entry about the probability of running out of money in retirement. What I did not do in that entry was run a stress test on a portfolio to examine what might happen should a retired investor experience another three standard deviation dip as we came through in 2008 and early 2009.  Later today I plan to take either the Schrodinger or Curie Portfolios as the … [Read More...]

400 Level

International ETFs: Are There Any Potential Buys?

Two days ago I ran an analysis on domestic ETFs to see if there were any buying opportunities.  The following is a similar Quantext Portfolio Planner (QPP) analysis of international ETFs.  As readers will see in the "Delta Factor" projection table, there are a few buying opportunities. … [Read More...]

Return and Risk Relationship

What is the relationship between return of a portfolio and the associated risk involved? Quoting from an “Active vs. Passive” paper I found in my files. “High potential returns always involve high potential risks. There are no low-risk/high-return investments. Investment risk comes in many forms but, to most investors, risk means the potential for losing investment capital and … [Read More...]