100 Level

The Efficient Market Hypothesis

Kurtis Hemmerling's article, "Do You Believe in The Efficient Markets Hypothesis Co-Out?" caught my eye and I am always interested in what other writers have to say about the Efficient Market Hypothesis.  Hemmerling writes the following. "If you choose to believe in the EMH, then you should simply invest in a broad market ETF such as one that tracks the S&P 500 (SPY), … [Read More...]

$100,000 Starter Portfolio

For prospective investors just beginning a portfolio, here is a sample based on the Momentum-Optimization Model (MOM).  MOM is discussed elsewhere on this blog.  Just search to full title or MOM to find this material. We first begin with a ranking of all the securities we might consider for our holdings.  This includes approximately 30 ETFs.  Most are commission free to clients of … [Read More...]

300 Level

Portfolio Construction: The Important Decisions

William J. Bernstein, in his most recent book, “The Investor’s Manifesto” writes, “Before diving into the most important issue faced by any investor–the asset allocation decision–you will need to understand four things: save as much as you can, make sure you have enough liquid taxable assets for emergencies, diversify widely, and do so with passive or index … [Read More...]

Curie Portfolio Update: 4 January 2012

All the portfolios need to be reviewed after the fourth quarter dividend distributions.  The Curie is no exception.  The cash from the dividends will be used to bring some of the under-target asset classes back into balance.  There are quite a few asset classes that need attention as viewers can see from the following Dashboard.  We use the Dashboard as a way of displaying the … [Read More...]

200 Level

QPP Analysis of Swensen-Faber Merged Portfolio

Merging ideas from the "Swensen Six" and "Faber Ten" portfolios has the potential to generate a wide array of asset allocation plans.  In the following example I am sticking with the general percentages allocated to the broad asset classes, as recommended by David Swensen, but you will see that I am adding asset classes as suggested in the "Faber Ten" portfolio. … [Read More...]

Retirement Planning Mistake #2

As a young boy my parents read to me every night and Aesop's fables were frequently on the menu.  I still recall the ant and grasshopper story where the ant was busy in the summer preparing for the winter while the grasshopper wasted time foolishly.  The picture from the fable that still lingers is that of a frozen grasshopper the following winter.  That story is fundamental to The Golden Rule of … [Read More...]

400 Level

Bullish Percent Indicators Update: 7 September 2012

Despite the strong market today, several sectors and one index handed the ball over to the defense.  Check the tables to see which areas of the market moved from X's in the right-hand column over to O's. … [Read More...]

Bullish Percent Indicators: 3 November 2012

A few more changes developed this past week in both index and sector Bullish Percent Indicators.  In some cases the market strengthened while in others it weakened.  As you look over the tables, ask yourself if you see any particular trends. … [Read More...]