100 Level

Solving Investment Problem #5: It is too late to start saving.

Balderdash!  It is never too late to begin saving for retirement.  Yes, it is preferred to follow "The Golden Rule of Investing" and start saving as early as possible, but it is never to late to begin.  Let me illustrate with a short story. I know of one family that had almost no savings by age 57.  The house was paid in full, but savings for retirement were close to … [Read More...]

QPP of Aggressive Portfolio

Back on January 18, 2012 I posted a table showing asset allocation plans that ranged from low risk to very aggressive portfolios.  At that time I posted a Quantext Portfolio Planner (QPP) analysis of the low medium-risk portfolio.  A Platinum member requested a similar QPP analysis of the high risk or aggressive portfolio.  Below is the analysis. QPP Analysis of High Risk Portfolio:  The … [Read More...]

300 Level

Sample Portfolio Requested By Platinum Member

The following set of tickers and percentages were sent to me for analysis.  I used five years of historical data and set, as I generally do, a 7.0% return projection for the S&P 500.  I used TIP (1.0%) for the cash holding.  That choice has little impact on the final projections.    Below is the analysis data.  Instead of me writing up my observations, I'll … [Read More...]

“Creme List” for July 15, 2011

Photograph: 1954 Plymouth Three new stocks broke into the elite list this week and none were eliminated.  This makes the largest number (26) of stocks ever assembled on the "Creme List," if memory serves correctly.  The latest "Creme List" of stocks are located on the far left column of this new database.  Platinum membership available for $5.00 per … [Read More...]

200 Level

A Challenge to Active Management

Active vs. Passive Management Scores of papers and blogs have been written about the merits of passive vs. active management.  I've contributed my share and here is one of my earlier posts.  Readers will find more articles by moving over to the right sidebar and looking up Passive vs. Active blogs.  There are over 25 posts on this subject. When you read about active management outperforming … [Read More...]

High Yield Retirement Portfolio

A Platinum member submitted the following portfolio for analysis.  The portfolio is designed to throw off income for a retiree and as you can see, the historical yield is a very high 4.6% so the portfolio is meeting that goal.  Take note that the portfolio outperformed the S&P 500 and did it with much lower risk. The projected return over the next six to twelve months is 7.6% or very close … [Read More...]

400 Level

Market Conditions: Where Are We?

Technical Analysis of Broad Market In a recent article from the American Association of Individual Investors (AAII), one writer wrote the following. "I recommend that investors form a major market opinion first.  Is it a long-term bull market or bear market?  Bear markets should not deter investment, but being aware of them is important in order to determine how aggressive you … [Read More...]

Improving On The Simple Nine Global ETF Portfolio

While there are advantages to keeping a portfolio simple, there are also disadvantages.  For example, one will miss opportunities by not including asset classes that have been shown by Fama and French to add value to the portfolio.  Namely, value asset classes such as small-cap value (VBR).  We don't want to eliminate asset classes just to keep the portfolio simple.  The Ranking data table shows a … [Read More...]