100 Level

Searching for the Strategic Asset Allocation Holy Grail

Establishing a strategic asset allocation (SAA) plan for a portfolio requires at least two major decisions.  1) What asset classes should be included in the portfolio.  2) What percentage of the total portfolio is allocated to each asset class.  Decision number two is the more difficult of the two.  Where do I come up with the various asset allocation plans found in the various … [Read More...]

If I Were Starting A New Portfolio Today

What would a portfolio look like if I were starting from scratch today?  Here are a few basic principles to consider before making the initial Strategic Asset Allocation decision. Begin by using index funds or index ETFs.  My preference, as Platinum members well know, is to use "non-managed" index ETFs.  Yes, someone needs to make a decision what goes into the ETF, but for practical purposes … [Read More...]

300 Level

Bohr Performance Data: 19 November 2012

The only trade over the last month was to sell nearly all shares of DBC since the price moved below its 195-Day Exponential Moving Average (EMA).  While the Bohr is not one of the five ITA Risk Reduction (ITARR) model portfolios, I still applied the idea under certain circumstances.  As Platinum can see from the Dashboard below, while the asset classes are within the target limits, there are a few … [Read More...]

How Well Did The Beginner’s Portfolio Perform?

This weekend I posted an article over on Seeking Alpha on a Beginner's Portfolio.  One comment got me to thinking - how well did this optimized portfolio perform over the last five years, the time frame I used for the SA article.?  I considered this to be a beginner's portfolio in the sense that it holds only 10 ETFs and it is not all that sophisticated or complicated.  My personal preference is … [Read More...]

200 Level

QPP Analysis of Actively Managed Mutual Fund Portfolio

Actively Managed Mutual Fund Portfolio The following QPP analysis is one where the portfolio is made up of actively managed mutual funds.  Long-time readers know my opinion about such funds, even though I used them throughout my teaching career.  It was a mistake.  Data was missing for JVLAX so I lumped the money market funds and the percentage (9.54%) held in JVLAX into … [Read More...]

Why Sector Allocation Is Diversification Deficient

There are investors who build their portfolios around sectors instead of asset classes.  The following optimization shows why sector allocation comes up short when it comes to portfolio diversification.  As a reminder, asset classes cover all sectors, but sectors do not cover all asset classes. … [Read More...]

400 Level

August “Delta Factor” Risk-Adjusted Portfolio For Interested Investors

What is a "Delta Factor" risk-adjusted portfolio and how is it constructed?  Rather than considering this as a potential portfolio for actual use, view it as an experimental portfolio.  Here are the steps I used to come up with this combination of ETFs. … [Read More...]

Action Within Kenilworth Expected

Today is examination day for the Kenilworth and based on the price of several ETFs and their 195-Day Exponential Moving Averages (EMA), we anticipate picking up shares in asset classes that are under target. The two primary asset classes that need particular attention are emerging markets and international REITs.  Here are links showing the relative prices for VWO and RWX and their 195-Day … [Read More...]