100 Level

Aggressive Growth: Portfolio #6

The Aggressive Growth Portfolio is the last in this series of sample portfolios.  We moved from the Ultra Capital Preservation where bonds and income ETFs made up the majority of the portfolio to this example where the bond asset class is peeled down to a mere 6% of the total portfolio. Platinum membership available for a low $5.00 per month.  This last sample portfolio in the … [Read More...]

Fama & French’s Three-Factor Model

This is a revision of a blog I posted over a year ago. In 1992, Fama and French broke out their three-factor model and changed the way we construct portfolios. Again, quoting from Hebner as to how the three-factor model advanced the relationship between return and risk as it relates to a portfolio. “The Fama/French model added two other fundamental determinants. Fama and French sought to … [Read More...]

300 Level

Thinking Through a Basic ETF Portfolio

Thinking through the process of constructing the following ETF rich portfolio several required specific goals be met. This material is not for publication elsewhere on the Internet. The portfolio needed to be simple.  While 15 ETFs are not exactly simple, neither is it overly complicated.  To simplify one could reduce the number of bond and treasury ETFs. All ETFs must be commission free … [Read More...]

Dividend Oriented Stocks Are Limited Under The Latest Screen

Dividend Stocks of Interest From time to time I will post a few stocks for Platinum members interested in spicing up their portfolio.  While it is difficult to build a portfolio using only stocks and have that portfolio outperform the stock market over the long run, it is possible to pull down portfolio risk by adding companies that have a low correlation with the broad market.  … [Read More...]

200 Level

Active vs. Passive Investing

ITA Wealth Management readers will recall the five decisions discussed in "The Investment Answer," a short book authored by Daniel Goldie and Gordon Murray, who died of brain cancer last month.  Those five fundamental decisions are:  1) Do-It Yourself Decision, 2) Asset Allocation Decision, 3) Diversification Decision, 4) Active versus Passive Decision, and 5) Rebalancing … [Read More...]

Portfolio Performance Data: 18 February 2012

All portfolios showed gains this week on an absolute scale, but the relative movement when measured against the different benchmarks was mixed.  The Kepler held par with respect to the VTSMX and picked up a few tenths of a percent on the ITA Index.  The Kenilworth pulled ahead of both benchmarks.  Seven of the eleven portfolios held their own or gained ground on the VTSMX.  … [Read More...]

400 Level

Semi-Variance: The Better Risk Measurement

Photograph: Government buildings in Lisbon, Portugal Updating Sortino and Retirement Ratios Risk Management Users of the TLH spreadsheet will want to update the semi-variance calculation in the SR worksheet after the market closes and all the index data is available.  To make sure you have the latest data, wait until at least three hours after the market closes so all the benchmarks are … [Read More...]

Bullish Percent Indicator Data

What we have in the following table is something called, major market Bullish Percent Indicators (BPI).  In this table I only included data from 2012.  Values coded with a red background indicate that the majority of companies are overbought and when the background is green, the majority of companies are oversold.  Nowhere in this table of major markets do we see an oversold … [Read More...]