100 Level

The Five Best Asset Allocation Books

Investors interested in digging deeper into the nuances of asset allocation will find the following five books of interest. Here is my list of the five best books on asset allocation.  In a later post, I will add another five books to this group, making up my top ten list of investment books. The Four Pillars of Investing: Lessons for Building a Winning Portfolio - William J. … [Read More...]

Merging The Swensen And Faber Portfolios

Swensen and Faber-Richardson Portfolios Merging the Swensen and Faber-Richardson portfolios is an effort to extract the excellent logic behind the "Swensen Six" portfolio and expand the number of asset classes as advocated in the "Faber-Richardson Ten" portfolio.  Parts of the logic behind the "Swensen Six" can be found in this Seeking Alpha article.  In … [Read More...]

300 Level

QPP Analysis of Curie Portfolio

Curie Review: Part II Does the Curie need tweaking?  Is there a match between any of the under-target asset classes and ETFs that might be priced to buy? Taking the current ETFs and stocks held within the Curie, I did a copy and past of both the holdings and percentages and ran the following QPP analysis on the Curie.  It has been over three months since I last analyzed the Curie and it … [Read More...]

Twelve ETF Portfolio

When designing a portfolio several goals need to be considered.  Here is a blueprint for portfolio construction. Build the portfolio using non=managed ETFs and index funds.  Don't over complicate by using too many ETFs. Keep costs low by using inexpensive ETFs.  For most investments we use Vanguard ETFs. When running a QPP analysis, set these standards. Projected … [Read More...]

200 Level

Asset Allocation: How Important Today?

Asset Allocation Due to a recent Ibbotson study (Unfortunately, this article now requires one to register.) asset allocation is not the investment elixir today it was thought to be in the late 1980s and 1990s. Nevertheless, it remains the best method for constructing portfolios if our goal is to outperform a broad market benchmark index such as the VTSMX while reducing portfolio risk. Readers of … [Read More...]

Asset Allocation: How Important?

  Exactly how important is the portfolio policy on portfolio return and how is it measured? Research papers from the late 1980s through the early 2000s tell us it is very important. That is, anywhere from 90% to 100% of the return of the portfolio is tied to portfolio policy.  Let me quickly insert that several studies are frequently misinterpreted.  While the papers focus on … [Read More...]

400 Level

The Stock Market Is Stronger Than You Might Assume

With all the negative news one picks up, are you aware that the stock market is showing signs of strength, particularly when the different sectors are analyzed?  Tomorrow, I will be posting the latest data on the Bullish Percent Indicators (BPI) for the broad markets as well as ten sectors. This morning the NYSE BPI is showing that the offense has the ball as there are X's in the … [Read More...]

Sample 4 ETF Portfolio

Another Platinum member asked for an evaluation or analysis of this four (4) ETF portfolio. Efficient Frontier:  This EF graph is instructive as one can easily see how the four ETFs are influencing the final outcome.  IEF and TIP dominate the portfolio and move the current (diamond dot) mix of ETFs down in the lower left portfolio of the graph.  Increasing percentages to SPY and EFA would … [Read More...]