100 Level

Muling

Photograph: Fort in Savannah, GA Have you ever heard of "Muling?"  It was new term to me until this week when a former student sent me this URL.  Check it out. … [Read More...]

Rule #10: Control Retirement Portfolio Expenses

Regardless what type of portfolio you are overseeing, holding down expenses is essential to building a strong base for the retirement years.  Take the Schrodinger Portfolio as an example.  This portfolio was launched twelve years ago.  "Reorganizing" the Schrodinger reduced expenses by 200 basis points.  As an added boost, the performance immediately improved as the portfolio initially was … [Read More...]

300 Level

Value Oriented Portfolio

Last evening a value oriented portfolio was mailed to me so I thought I would run it through a Quantext Portfolio Planner analysis.  Unfortunately, three of the thirteen ETFs have "short records."  This simply means the data does not extend back a minimum of three years. The ETFs with limited data are: MGV, VXUS, and VSS.  Nevertheless, here are the results. To view this … [Read More...]

Einstein Portfolio Review

One of the benefits of looking at the Einstein Portfolio is to see what a portfolio looks like when nearly all the asset classes are in balance.  Using a 20% threshold or target boundaries, all but international bonds and two blend asset classes are within the 20% limits.  I'm still debating whether or not I want to continue to hold mid-cap blend (VO) and small-cap blend (VB) as both … [Read More...]

200 Level

Retirement Portfolio: A Possible Asset Allocation

Beginning with 100 shares in each of 40 ETFs, the Efficient Frontier and Buy-Hold-Sell recommendations are presented for a portfolio with constraints set to tilt the asset allocation toward bonds and more conservative investments. This information is not available for publication elsewhere on the Internet. Efficient Frontier:  Allocating 100 shares to each ETF sets up a portfolio that is … [Read More...]

Portfolio Performance Update: 15 October 2010

The data table below includes updates for the ten portfolios tracked using the Captool software. Those portfolios are current through 9/30/2010 and the ten portfolios tracked using the TLH spreadsheet are updated through 10/15/2010. If you have never seen one of these Portfolio Performance data before, the last two columns, Sortino Ratio (SR) and Retirement Ratio (RR) are significant in that they … [Read More...]

400 Level

Risk Reduction Model Clarification

In an effort to clear up some misunderstandings surrounding the ITA Risk Reduction model, permit me to go into a few more details.  My initial move, late last year, was to examine a number of portfolios I track and select several that were lagging the VTSMX benchmark.  Initially, I was only going to apply the ITARR model to three portfolios; Maxwell, Euclid, and Madison.  While the … [Read More...]

Equity “Delta Factor” Projections

The following screen shot shows the "Delta Factor" projections for twenty ETFs, many found in most of the ITA Portfolios.  These are equity ETFs as I did not include any bond or treasury ETFs in this analysis.  When one sees a yellow background in the Delta column, that is a semi-positive signal.  The best signal would to see a green background.  There are none at … [Read More...]