100 Level

Why Use Index Funds?

The Power of Index Investing Why are 80% to 85% of all investors wrong?  Could it be the power of advertising and greed?  What do I mean when I say a high percentage of investors have it all wrong?  Simple!  The majority of investors build their portfolios by selecting individual stocks.  While we do not find fault with investors who want to add a few highly selected … [Read More...]

Active Management: A Mistake

Much is written about active vs. passive management. Harold Evensky defines active management in his book, "Wealth Management" and I quote. "Active Management is the art and science of security selection based on a belief in a manager's ability to consistently and accurately evaluate current and/or future events better than other investors. The core philosophical basis is … [Read More...]

300 Level

Passive vs. Active Investing

Why do large endowment funds use a passive investment strategy? Is it due to fund size and their portfolios are so large they mirror the market? Again, quoting from my “Active vs. Passive” paper, we have the following. “An estimated 40% to 50% of all institutional monies are in index or passive portfolios while only 3% to 4% of retail investors make use of passive strategies. … [Read More...]

Portfolio Management and ITA Index

Yesterday I mentioned in a comment and posted in the center footer that the distributions for the VTSMX and VFINX index funds are available.  If you are using the TLH Spreadsheet and received a warning signal behind the two radio buttons on the primary (frequently called Mosaic) worksheet, you need to update the distribution page.  I don't think I have a Camtasia audio/video clip of … [Read More...]

200 Level

Positioning the Maxwell, Euclid, and Madison

In preparation to launch the ITA Risk Reduction model for the Maxwell, Euclid, Madison, and possibly one or two more portfolios, the basic asset allocation is laid out below.  SDS is shown only as a possibility in unusual circumstances.  The percentages as shown apply only when the ETF price lies above its 195-Day Exponential Moving Average (EMA).  Such is not the case right now as … [Read More...]

QPP Analysis of Swensen-Faber Merged Portfolio

Merging ideas from the "Swensen Six" and "Faber Ten" portfolios has the potential to generate a wide array of asset allocation plans.  In the following example I am sticking with the general percentages allocated to the broad asset classes, as recommended by David Swensen, but you will see that I am adding asset classes as suggested in the "Faber Ten" portfolio. … [Read More...]

400 Level

Bullish Percent Indicator Update: 23 March 2013

Both broad markets and sectors of the market weakened this past week.  Not by much and the downward trend was not 100%, but Platinum members will see that the majority of the recorded values declined. … [Read More...]

Bullish Percent Indicators: Further Market Weakness Beginning To Appear

Bullish Percent Indicators (BPI) are Point and Figure graphs we use to view overall market movements from week to week.  Not only do these indicators provide general market movements based on percentage changes, but the actual values tell us if the market is under valued, fairly valued, or over valued.  The bull market is cooling off based on BPI values and this is why investors need to be paying … [Read More...]