100 Level

Ten Biggest Investor Mistakes – #3

  Wealth Management – Mistake #3: Many investors are too conservative at an early age. Don't load up your portfolio with bonds when you are in your twenties and you have forty years to save. Let me illustrate this mistake with a real example. Husband and wife saved identical amounts during their working years.  The wife’s savings were divided almost equally between … [Read More...]

Gordon Equation: What Is It?

I'm not sure I ever heard of the Gordon Equation (GE) until I read about it in William Bernstein's second investment book, "The Four Pillars of Investing." Even on the first read, I skimmed over it. Now that investors are paying more attention to dividends, the GE merits additional attention. Simply stated, the Gordon Equation is written as follows: Market Return = Dividend … [Read More...]

300 Level

Analyzing “Piotroski Style” Stocks

What does a Quantext Portfolio Planner (QPP) analysis look like for some of the stocks that passed the Piotroski screen? Below is such an analysis. AWRFC data was not available and NPTN came up with too short of a record, thus cutting the number of companies to ten. Platinum membership is available for $5.00 per month.  Look for the first month special. … [Read More...]

TEVA: A Stock Worth Further Examination

This past weekend I was running my dividend stock screening program to see which companies passed the screen.  Then I recalled that I once had a "valuation" screen that looked for companies that were priced under numerous valuation parameters as laid out in the Stock Investor Professional, AAII's stock screening program.  Here are the valuation parameters I used for my screen, in addition to the … [Read More...]

200 Level

How Does A Beginning Investor Use The ITARR Model?

When one has been saving and investing as long as I have, it is easy to forget many of the initial steps necessary to launch and manage a portfolio.  In this blog post, I will attempt to fill in a few gaps, and even with this effort, I will most likely miss something.  That is why I appreciate questions.  I am using the Gauss Portfolio as my model for several reasons.  1) It is … [Read More...]

Report on “New Normal” Portfolio

The following report on the "New Normal" portfolio comes from Bob Warasila, the creator of this set of assets. The New Normal test portfolio is now at the 2 year mark and is ahead of the benchmark VTSMX.  This portfolio is based on some comments by Pimco’s co-chairs and Geoff Considine (What the New Normal Means for Asset Allocation, August 8, 2009) of QPP back in the summer … [Read More...]

400 Level

Gauss Portfolio Review: Efficient Frontier, Rankings, and Decisions

Thirty-three days rolled by and it is once more time to update the Gauss Portfolio.  Remember, this is one of the risk reduction model portfolios. Efficient Frontier:  Recent buy and sell adjustments moved the current portfolio (diamond dot) much closer to the optimized portfolio (red dot on EF curve).  In fact they are almost one and the same.  Platinum members can do a search of Gauss to see … [Read More...]

Reducting Risk With The Euclid Portfolio

The 12th of the month is the day to closely examine each ETF used to populate the Euclid Portfolio, one of ITA Risk Reduction model portfolios.  While the markets have several hours before they close, it is highly unlikely any of the ETFs will change positions with their respective 195-Day Exponential Moving Averages (EMAs).  Here is the process I went through in my examination of the … [Read More...]