100 Level

Gordon Equation: What Is It Projecting?

Gordon Equation "If one of life's secrets is ... keep your head when all those around you are losing theirs, then the Gordon Equation is the collar that will keep it there." - William J. Bernstein. When discussing the Gordon Equation, we do not want to confuse the simple investment equation with the Klein-Gordon physics equation.  A Google search for the Gordon Equation will … [Read More...]

How To Protect Profits: Check Relative Strength Indicator

Protecting Profits After watching the market surge as it did this past week, how does one protect profits?  Answering this question is not easy and it will vary from investor to investor and even from account to account.  Below are possible answers to this vexing question. If you are a young investor with many years (10 or more) to go before retirement, do nothing. If you are … [Read More...]

300 Level

What Should I Do If I Am Holding Cash?

What should I do if I am holding cash?  Is it time to move back into the market, and if so, how should I proceed?  Those are difficult questions considering the S&P 500 (VFINX) increased in value by 87.4% since January 20, 2009.  If one were to follow the Louis Rukeyser analysis, moving immediately into the market is the correct decision.  However, Rukeyser was using data … [Read More...]

Smartest Low-Medium Risk Portfolio

With this low-medium risk portfolio we move up one notch in aggressiveness. This is still a very conservative portfolio with 60% committed to the bond/income asset class. Moving from 80% in bonds down to 60% brings about an increase in both projected return and projected uncertainty.  The Return/Uncertainty ratio is still a respectable 0.62. Platinum membership is available for a low $5.00 … [Read More...]

200 Level

Retirement Rule #6: Develop Your Own Strategic Asset Allocation Plan

Continuing the theme of retirement planning, at some point one needs to develop an asset allocation plan.  If you neglect this suggestion, you have already made a decision.  To make no decision is to make a decision.  One may as well set up a plan with some logic and reasoning behind the process.  To develop a SAA plan, one needs to understand the options available or Rule #5. There are a … [Read More...]

Steady As She Goes With The Schrodinger

Investors looking for a well-diversified no-nonsense portfolio need look no further than the Schrodinger Portfolio.  This passively operated portfolio was launched in late 2000 so it has been operational during the "lost decade."  The Sortino Ratio for the Schrodinger is a very high 10.4 and the yield is a respectable 2.3%.  Readers will note the strong tilt toward … [Read More...]

400 Level

Ten Best Investment Books

Education is a step toward financial success. Where does one begin when trying to come up with the top ten investment books? Here is my list, but be forewarned, this is not a list of books that focus on either fundamental analysis of stocks, nor is it a list of books explaining technical analysis. In fact, the list below is the antithesis of stock picking. My list of the top ten investment books … [Read More...]

Bullish Percent Indicators Gain Ground

The weekly update of index and sector Bullish Percent Indicators showed gains in some critical areas.  Those are shown in the data tables presented below. The following information is not for publication elsewhere on the Internet. … [Read More...]