100 Level

How Many Asset Classes or ETFs Are Required to Construct Diversified Portfolio?

One of my favorite blog writers is Geoff Considine of the Portfolioist.  Yesterday, November 28th, Dr. Considine published an interesting article that begins to answer the above question - How many asset classes or ETFs are necessary to build a well-diversified portfolio?  Considine posits ten (10) asset classes will provide sufficient diversification.  David Swensen argues in his book, … [Read More...]

Asset Allocation: How Important?

Asset Allocation Due to a recent Ibbotson study (Unfortunately, this article now requires one to register.) asset allocation is not the investment elixir today it was thought to be in the late 1980s and 1990s. Nevertheless, it remains the best method for constructing portfolios if our goal is to outperform a broad market benchmark index such as the VTSMX while reducing portfolio risk. Readers of … [Read More...]

300 Level

AAII ETF Portfolio Analysis

In the November 2011 issue of the AAII Journal is a Model ETF Portfolio.  I've been a member of the American Association of Individual Investors (AAII) since the mid-1970s and it is a great organization.  In each publication, I generally find one or two articles of interest.  Anytime I see a sample portfolio I like to run an analysis to see what the QPP is telling me.  … [Read More...]

Einstein Portfolio Review: 2 May 2012

Due to the blog shutdown, I'm a few days late with this update.  That delay only means that all the April data (April dividends) is included in this review.  Below is the current Dashboard as extracted from the TLH Spreadsheet.  … [Read More...]

200 Level

Asset Allocation: How Important Today?

Asset Allocation Due to a recent Ibbotson study (Unfortunately, this article now requires one to register.) asset allocation is not the investment elixir today it was thought to be in the late 1980s and 1990s. Nevertheless, it remains the best method for constructing portfolios if the goal is to outperform a broad market benchmark index such as the VTSMX or ITA Index* while reducing portfolio … [Read More...]

Madison Portfolio Update: 18 April 2012

Examination of the eight critical asset classes held in the Madison show only commodities, as represented by DBC, is priced under its 195-Day EMA.  Both VEU and VWO are close to crossing below their respective EMAs so I will need to check those again a few hours after the market closes as it takes time for the index prices to settle out.  For now, I sold off the shares of DBC as there is … [Read More...]

400 Level

Bullish Percent Indicator: Six Risk Levels

Readers interested in digging deeper into Point and Figure (PnF) technical analysis will be served by purchasing Thomas J. Dorsey's book, Point & Figure Charting.  His latest edition is available in Kindle format, but I prefer this type of book in hardback as I want to easily bounce from section to section.  That becomes more difficult with a Kindle. A.W. Cohen is considered the … [Read More...]

Optimization-Momentum Recommendations For Kepler

As promised here are the optimization-momentum recommendations for the Kepler Portfolio.  We first begin with the Efficient Frontier and see that the current portfolio, after the recent transactions, is moving closer to the optimized portfolio. Efficient Frontier:  The current portfolio is represented by the yellow diamond box and the optimized portfolio by the small red dot.  The recent … [Read More...]