100 Level

Optimization of Stock Portfolio

Now we take the same list of stocks as used in the prior blog post, only this time I optimized the portfolio by requesting for a maximum Return/Risk ratio.  In the first screenshot readers will see the QPP analysis.  In the second slide, note the correlation matrix and in the third I show the constraints placed on the portfolio of stocks. QPP Analysis:  The following asset allocation gives up … [Read More...]

Ten Biggest Investor Mistakes – # 8

  ITA Wealth Management Mistake #8:  Over confident and lacks patience.   Over confidence and lack of patience manifests itself in a number of ways. If you think you can beat the market by picking individual stocks, be very careful.  If you want to test your skills, set up two portfolios.  Use a passive approach with one and build it along the lines of portfolios … [Read More...]

300 Level

Einstein Portfolio Review

Last week I added a few shares of RWX, VWO, and EMB to the Einstein to bring a few asset classes into balance.  Other than the Bonds & Income asset class, this portfolio is now in balance. One Tactical Asset Allocation I will be making is to shift one percentage point from Small-Cap Growth over to Small-Cap Value.  i will use IWN for my Small-Cap Value ETF.  Another change is … [Read More...]

Sample Portfolio of 40 Stocks

The following list of forty (40) stocks was suggested by a reader for Quantext Portfolio Planner (QPP) analysis.  Long time readers of ITA know that QPP is a software program developed by Geoff Considine, author of a blog, The Portfolioist. QPP Analysis:  The following list of 40 stocks results in a well-diversified portfolio as indicated by the Diversification Metric.  Anything over 40% is … [Read More...]

200 Level

Requesting Yield To Exceed 3.0%

This morning I had an article published over on Seeking Alpha.  One reader requested what would happen if one of the constraints was to seek a yield of 3.0% or higher.  Below is the Optimization Analysis that meets this request when using the 16 ETF portfolio. The add link function does not seem to be working this morning so below is the URL to the SA … [Read More...]

Should You Attempt To Pick Individual Stocks?

Should you be involved in selecting individual stocks or is this activity best left to other investors?  Two recent Seeking Alpha articles appeared on this subject and the links are provided below. "Five Ways You Can Excel at Picking Stocks" "Should Stock Picking Be Mostly Left To Professionals" When I read these articles, I was quickly reminded of an article I posted … [Read More...]

400 Level

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...]

Where Are We With The Technical Indicators?

About all I can say about this volatile market comes from Peanuts.  Good Grief!  If I were King, I would cool off market volatility by accessing a small tax on every share traded and not held for fewer than 30 days.  We could balance the national budget and begin to pay off the national debt -- and do it on the backs of those who are able to most afford it.  Since this is … [Read More...]