100 Level

Multi-Asset Class Investing

Multi-asset class investing or multiple asset classes is a title that comes right out of Richard A. Ferri’s excellent book, “All About Asset Allocation.” While my reference is to Ferri's first edition, I would pay the few extra dollars and purchase the second edition.  Nudged by a fellow asset allocation investor, I went back and reread Chapter 4 of Ferri’s book. … [Read More...]

Asset Allocation: Moderate Portfolio

Analysis of a Moderate Portfolio Changing the asset allocation from growth to moderate requires a shift in the percentages allocated to the six basic asset classes. In the following portfolio we lower the percentage allocated to the broad U.S. equities market, REITs, international, and emerging markets. The percentage allocated to bonds increases significantly. Were I not sticking with the … [Read More...]

300 Level

Risk-Parity Portfolio: What Is It And What Does A Risk Portfolio Look Like?

Reducing Risk Through Risk-Parity Risk-Parity: Have you heard of the term or seen reference to this style of portfolio construction?  Join the crowd if this is new to you, even though the Risk-Parity idea has been around for quite a few years.  Risk-Parity is an alternative approach to portfolio construction where assets are allocated based on risk rather than allocation according to … [Read More...]

Portfolio Performance For Week of April 20th

The good news this week is that ten of the eleven portfolios gained ground on the VTSMX benchmark.  Only the Newton did not pull ahead of the U.S. Equities index, but remained even.  What was a little strange is the fact that eight of the eleven portfolios lost a fraction of a percent to the ITA Index, our customized benchmark.  By pulling ahead of the VTSMX I assumed the portfolios … [Read More...]

200 Level

Alternative Investment Vehicles to Suggested Index Funds

What are the alternatives one might use to those suggested by Solin in his recent book, "The Smartest Portfolio You'll Ever Own."  The reason for seeking alternative investments is two fold.  1)  We seek ETFs that have historical records of at least three years.  This is so we can run Quantext Portfolio Analysis (QPP) on the portfolios.  2)  When … [Read More...]

Retirement Requirements: Stress Testing the Gauss Portfolio

Assume you are using the Gauss Portfolio asset allocation plan for your retirement portfolio and you want to know if you can survive a three sigma event just prior to retirement.  The provided link or the Dashboard shown below lays out the Strategic Asset Allocation plan for the Gauss.  What is required in the way of savings for a 40-year old who has only saved $100,000 thus far and expects to … [Read More...]

400 Level

Keeping It Simple With An Global Nine ETF Portfolio

A portfolio does not need to be complicated to be global in its structure.  Nor does it need to be all that complex to bring success to the investor.  The following portfolio is simple and stands a greater chance of success if one employs the Momentum-Optimization Model (MOM) as explained below. This material is not available for publication elsewhere on the Internet. … [Read More...]

Monthly Review of Gauss Portfolio

Reviewing the Gauss Portfolio this month is a bit different since I made some tactical asset allocation changes.  If you examine the Dashboard (extracted from the TLH Spreadsheet) you will note a few changes.  As a result of the changes, the asset allocation plan appears to be a bit "bloody."  That should change by next month as I have a number of limit orders in place … [Read More...]