100 Level

Constructing Your First Portfolio

Faced with the task of building a portfolio from scratch, what are the first steps?  Assume one saved a bit of money, read a few of the Top Ten Investment Books, and is convinced of the wisdom of index investing. Read the following questions and answer them as best you can.  Don't be fearful of making a mistake or feel these decisions cannot be reversed.  Not only can you change them, I … [Read More...]

Retirement Planning Mistakes: Mistake #1

Mistake number one in my book is failure to save or to not follow The Golden Rule of Investing.  Open up a spreadsheet and run your own calculations for the following classic comparison. As a nineteen year old you have the foresight and financial opportunity to save $2,000 per year for eight years.  After saving $16,000, for some reason you stop. This $16,000 investment manages to earn the … [Read More...]

300 Level

Portfolio Review – Franklin

Franklin Portfolio Reviewed In contrast to the recent review of the Kepler Portfolio, where the asset allocation plan is in balance, the screen shot below shows a portfolio that is heavily oriented toward large cap asset classes.  To be fair, the Franklin is a very young portfolio and it came with a pre-existing asset allocation condition.  We worked on the Kepler portfolio for several … [Read More...]

“Creme List” for 20 May 2011

Two major changes show up in the "Creme List" this week.  One is related to the stock that jumped into the number one position and the other is the addition of a new company that never made the list. … [Read More...]

200 Level

Beginner’s Portfolio

If just starting out as an investor, the following portfolio is a slight modification from the Faber-Richardson Ten Portfolio as published in their book, The Ivy Portfolio.  I replaced GSG, a commodity ETF with a gold ETF, GTU.  Instead of VB, I inserted IWN which provides a value tilt to the portfolio. This material is not available for publication elsewhere on the Internet. … [Read More...]

Portfolio Performance: ITA Ratio

When there is a lot of blog activity it is easy for the Portfolio Performance data table to be pushed off the screen and missed by readers unless they remain current with the new entries.  I'm bringing back the August 13th table with additional data.  Added to this table is the recently developed ITA ratio, another risk measurement that sets a high bar for portfolio … [Read More...]

400 Level

Sortino Ratio Update

Investors using the TLH spreadsheet and in particular, the SR worksheet, will find this video/audio clip a refresher in updating the Sortino and Retirement ratios. One of the first changes to make in the calculation is to update the inflation rate. The latest data shows inflation moving from 1.1% to 1.2%. Readers can find this information on a site titled, U.S. Inflation Calculator. In the … [Read More...]

Bullish Percent Indicators Update: 29 March 2013

Bullish Percent Indicators provide clues to the general direction of the broad U.S. markets as well as sectors of the market.  There were few changes this past week as shown in the two tables below.  We first look at the broad markets where the offense continues to control the ball.  There is one exception.  The information is not quite so bullish when one drills into the individual sectors of the … [Read More...]