100 Level

Government Shutdown: What Should Investors Do?

There are a significant number of congressional members, particularly within the U.S. House of Representatives, that seem Hades bent on closing down the government over the coming budget crisis.  It matters little that many of these same members voted numerous times to raise the debt limit under the Bush Administration.  Regardless of the politics, what defensive positions are available to … [Read More...]

Sixteen ETF Portfolio

Low Risk Sample Portfolio Below is a modest sixteen (16) ETF portfolio that covers all the basic asset classes. The portfolio is projected to perform at a rate approximately 1% greater than the S&P 500 with a lower risk. The Diversification Metric (DM) at 37% is just a tad below our goal of 40%. With a little tweaking, would could likely elevate the DM. However, we need to keep in mind these … [Read More...]

300 Level

Einstein Portfolio Update: 30 October 2012

If you compare the performance numbers in this blog post with the prior performance data table, you might find slight differences in the Einstein as the performance table did not include recent purchases of the commodities, DBC or a number of dividends.  Some time ago I sold off DJP as I am no longer a fan of ETNs, a slightly different animal than ETFs.  Platinum members will find the Einstein … [Read More...]

QPP Analysis of Suggested ETFs

In the following analysis I show the make up of the suggested tickers.  VSS and MLPI did not have three-year records so I cut them from the list.  In the first slide I show the makeup of the portfolio using nearly equal percentages for each ETF.  In the second slide I show the "Delta Factor" projections using a four-year time span.  The third slide shows the … [Read More...]

200 Level

Index vs. Passive Investing

Harold R. Evensky, in his Wealth Management: The Financial Advisor's Guide to Investing and Managing Client Assets book, makes a distinction between index and passive investing.  The distinctions can be found at this location.  Few readers are unaware of the differences between active and passive management, but the subtle definitions between index and passive management deserves some … [Read More...]

Fundamental Principles for Constructing a Portfolio

The "science" of portfolio construction requires numerous fundamental principles.  Long-term portfolios call for an orientation toward return or growth through proper diversification.  Growth needs to be tempered so as to handle times of recession, deflation, and inflation.  As described in the Harry Browne "Permanent Portfolio" one needs to prepare for the four stages of the market; prosperity, … [Read More...]

400 Level

Preparing the Maxwell for TAA Action

Platinum members interested in the quantitative approach to improving returns and reducing portfolio uncertainty for the Maxwell take note.  This morning shares of VTV and VOE were sold making room for VTI, VEU, VWO, VNQ, and RWX.  Check out the asset allocation plan below for this portfolio. … [Read More...]

Market Watchers Pay Attention

Technical Analysis: StockChart Graphs ITA Wealth Management readers know I am not a market timer.  Nevertheless, one should not be oblivious to market movements, particularly when cash is sitting on the sideline.  When is a good time to start investing that cash?  Possible technical signals are shown below.  As I update my "Watch List" I will post the percentages of … [Read More...]