100 Level

Use of Leveraged ETFs

Leveraged ETFs are generally not a great investment for a long term investment since they do not necessarily behave as we might expect. One is a simple mathematical reason. Consider the 2 scenarios shown in the table below. The first scenario considers a stock that moves sideways by moving up 1% one day, down 1% the next and repeats this pattern. The second scenario is a bullish scenario where the … [Read More...]

Respighi’s “Pines of Rome”

While I recommended Ottorino Respighi's "Pines of Rome" back on August 29, 2010, it did not receive much attention at that time as it was a secondary selection.  This week I am making it my first selection, and as I wrote back in 2010, this is a must for any classical collection.  Here is one "Amazon" review that should further spark your interest in this piece of music. "Ever since Toscanini's … [Read More...]

300 Level

QPP Analysis of Actively Managed Mutual Fund Portfolio

Actively Managed Mutual Fund Portfolio The following QPP analysis is one where the portfolio is made up of actively managed mutual funds.  Long-time readers know my opinion about such funds, even though I used them throughout my teaching career.  It was a mistake.  Data was missing for JVLAX so I lumped the money market funds and the percentage (9.54%) held in JVLAX into … [Read More...]

August “Delta Factor” Risk-Adjusted Portfolio For Interested Investors

What is a "Delta Factor" risk-adjusted portfolio and how is it constructed?  Rather than considering this as a potential portfolio for actual use, view it as an experimental portfolio.  Here are the steps I used to come up with this combination of ETFs. … [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 the goal is to outperform a broad market benchmark index such as the VTSMX or ITA Index* while reducing portfolio … [Read More...]

Risk Reduction Portfolio: A Potential Asset Allocation Plan

Bob Warasila, author of the "New Normal" portfolio, sent me an asset allocation plan that is worth sharing with Platinum members.  This Risk Reduction Portfolio differs slightly from one I recently posted over on Seeking Alpha in that this portfolio has a small exposure to precious metals and it also includes on stock.  In the following three screen shots readers will find the … [Read More...]

400 Level

Curie Portfolio Review: 29 November 2011

These portfolio reviews roll around faster than one might expect and this morning is the time to reexamine the Curie Portfolio. Checking over the Dashboard (worksheet from inside the TLH Spreadsheet) is the first order of business.  Readers will quickly see that this portfolio needs some attention.  I've yet to make a firm decision on whether to continue allocating any percentage to … [Read More...]

International ETFs: Priced to Buy?

Approximately once a month I post the "Delta Factor" projections for a list of international ETFs.  Below are two sets of data.  One covers a three-year period and the second expands to four years.  What is the outlook over the next six to twelve months if we use this type of probability projection?  In the following tables I use two different time frames.  The … [Read More...]