100 Level

Alternative Portfolio: Increasing Allocation to PAAIX

Last week I published two portfolios that included the private equity ETF, PSP.  Here are links to the first and the second portfolios.  In the following portfolio, the allocation to PAAIX is moved up to 24% in hopes of pulling down portfolio volatility.  The assumptions in this analysis are identical to the previous two portfolios.  I did include last Friday's data in this … [Read More...]

Basic Five Asset Class Portfolio

What are the basic asset classes that belong in every portfolio?  Investors beginning the portfolio construction process would do well to include each of the following five asset classes in their portfolio.  The ETF ticker suggestions are among those I use to populate these five asset classes.  This group of ETFs provide broad coverage of the world market, although there are still a … [Read More...]

300 Level

TLH Spreadsheet Help: Getting Started

Platinum members interested in receiving TLH Spreadsheet help will find two new audio/video clips available within the TLH SS Help navigation tab. … [Read More...]

Variation of “New Normal” Portfolio

We are always searching for a better portfolio asset allocation based on five criteria.  Projected return Projected uncertainty or volatility Ratio of Return/Uncertainty Diversification Metric Portfolio Autocorrelation Platinum membership is available for $5.00 per month. View "New Normal" portfolio. … [Read More...]

200 Level

Starting From Scratch: The Logic Behind the “Swensen Six” Portfolio

When it comes to building a portfolio, David Swensen's general guidelines provide numerous strong starting points.  His portfolio satisfies requirements of numerical diversification, equity orientation, and functional diversification.  While Swensen does not recommend specific tickers in his book, Unconventional Success, he lays out basic guidelines I consider vital to portfolio … [Read More...]

The Asset Allocation Decision

What asset classes should be included in a portfolio?  Global diversification is highly recommended.  A well-diversified portfolio will contain, at a minimum, the following asset classes. … [Read More...]

400 Level

Delta Factor Results From Recommended Stocks

Adding a few recommended stocks to the "Mad Money" group, plus a few more, and Platinum members have the beginnings of some interesting companies.  No recommendations are implied.  I have room for another 15 to 17 before I need to create another list.  ROIC does not have the requisite history, so take that into consideration.  For this QPP analysis I used a 57-month … [Read More...]

Where Are We With Respect To The ITA Risk Reduction Model?

With several "ITARR" portfolios coming up for review, what is the condition of the critical ETFs we use to populate our portfolios.  The critical ETFs are: VTI, VNQ, RWX, IWN, VEU, VEA, VWO, DBC, PCY, etc.  To examine these ETFs and others that may be used by investors, go to this site and request the ETF, index fund, or stock of interest.  VTI is the example shown in the link. … [Read More...]