100 Level

Asset Allocation Example

In the table below, viewers see the asset classes discussed in a prior blog entry.  We are looking at fifteen asset classes, including Cash. In the second table the sample asset allocation is broken down into percentages and we cut out the Core holding, moving the number of asset classes to twelve. [Table=6] … [Read More...]

Kenilworth Portfolio Update: 24 January 2013

The following Dashboard looks a little different than it did last month as I closed out the mid- and small-cap blend asset classes.  Both VO and VB were highly correlated with VTI and we have exposure to growth stocks through VOT and VBK.  Three percent (3%) is allocated to both mid-cap growth and small-cap growth.   Large-Cap Growth is covered by VTI our Large-Cap Blend ETF. … [Read More...]

300 Level

Risk-Parity Portfolio: What Is It And What Does A Risk Portfolio Look Like?

Reducing Risk Through Risk-Parity Risk-Parity: Have you heard of the term or seen reference to this style of portfolio construction?  Join the crowd if this is new to you, even though the Risk-Parity idea has been around for quite a few years.  Risk-Parity is an alternative approach to portfolio construction where assets are allocated based on risk rather than allocation according to … [Read More...]

“New Normal” Portfolio Analysis

Nearly three months passed since I last ran an analysis on the "New Normal" portfolio. At that time the projected return was 7.7% when I assumed the S&P 500 would return 7.0% over the next year.  The projected uncertainty was a modest 13.1% giving a Return/Uncertainty ratio of 0.58.  This portfolio is well diversified and it shows with a Diversification Metric (DM) of … [Read More...]

200 Level

Portfolio Performance: 18 January 2013

One month passed since I last posted the portfolio performance data table.  While every portfolio increased in value over the last month, in many cases the benchmarks increased at a faster rate than the portfolios IRR values.  When comparing performance with the ITA Index, the Curie, Newton, Kepler, and Kenilworth gained ground on the customized benchmark.  Maintaining the same difference were the … [Read More...]

Portfolio Development: Thinking Through First Steps

Several readers have been asking for advice as to which portfolio to follow and is there any philosophy behind the different portfolios?  The portfolios are owned by many different individuals so the portfolios are designed with those investors in mind.  I have had a major role in the Strategic Asset Allocation (SAA) plans of each.  Individual investors differ in their income and … [Read More...]

400 Level

Playing Defense With The “Holy Grail” Portfolio

While there is no such thing as a "Holy Grail" portfolio, humor me for a few minutes and think of this simple seven ETF portfolio as a sound basic portfolio. The purpose of this post is to test how one might play portfolio defense and when is such a move necessary.  First, we take a look at the current QPP analysis for this seven ETF portfolio. Platinum membership is available for … [Read More...]

When To Buy Back ETFs: Replacing ITARR Sold Positions

When is it time to buy back those ETF positions that were sold when the price of the ETF moved from above to below the 195-Day EMA?  A cogent question came up as a comment this morning.  Here is a paraphrase of the inquiry.  "VEU, VWO, DBC, etc. are all well under their respective RSI 30% indicator.  Even if one is following the ITA Risk Reduction model, does it not make … [Read More...]