100 Level

Second Grader’s Index Portfolio

Second Grader Portfolio About a year ago, Allan S. Roth, financial adviser, wrote a book I referenced in my last bog post. Roth helped his son, Kevin, set up this basic portfolio when Kevin was a second grader. I think he is now a fifth or sixth grader. The "second grader" portfolio is a three asset class portfolio or about as simple as it gets. The three asset classes are: U.S. … [Read More...]

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...]

300 Level

Portfolio Performance: 1 April 2011

Below is the Performance - Uncertainty data table for April 1, 2011.  In the process of updating the table, I focus on the changes in Sortino Ratio (SR) and Retirement Ratio (RR) as those values combine both return and uncertainty for each portfolio.  Since the last update, four (4) portfolios showed gains in the Return/Uncertainty ratio while three (3) showed losses and three (3) came … [Read More...]

TLH Spreadsheet: Rebalancing Addition

A new feature has been added to the TLH spreadsheet and one will find it on the Dashboard worksheet.  So far, I only have it available in the Bohr spreadsheet.  This is what it looks like and the idea is to give the user additional help in knowing how many shares to purchase to bring the portfolio back into balance.  In column J we find the different asset classes available for the … [Read More...]

200 Level

Balanced Portfolio: Number 3

Portfolio number 3 in this series is what I call a Balanced Portfolio.  Bonds are lowered to 40% of the portfolio so this is still quite a conservative mix of assets.  This portfolio comes close to fitting the 60/40 equity to bond ratio, sort of a standard when it comes to building a middle of the road portfolio.  Note the changes that are taking place in the five key metrics.  … [Read More...]

Performance of Portfolios: 23 December 2011

Portfolio Performance Data Once more, the ten portfolios had a good week in an absolute sense, but most gave up some gains when measured against the VTSMX benchmark.  The numbers are telling me that the U.S. Equities market is stronger than the international markets.  Global exposure is a drag on these portfolios as we hold EFA, EPP, VEU, VWO, and RWX.  When updating the values, … [Read More...]

400 Level

Harry Browne’s Permanent Portfolio

Risk-Parity Look at Permanent Portfolio Much is written about Harry Browne's Permanent Portfolio, particularly since it held up well during the "Black Swan" markets of the early 21st century.  Below is a look at the equal allocation plan as advocated by Browne, and a Risk-Parity examination of the same four asset classes.  Both the equal allocation and Risk-Parity … [Read More...]

Bullish Percent Indicators: 14 September 2012

What a great week for investors!  The Bullish Percent Indicators reflect the strong market, as one might expect.  The question now facing us is, how do we protect profits and can we look forward to a 10% correction?  The negative can wait.  Let's enjoy the week and focus on the positive results. … [Read More...]