100 Level

Investing Review: Examining the Basic Principles

From time to time it is useful to go back to the basics and make sure we have an investment plan that makes sense and has a high probability of adding value, or as we like to say, adds alpha to the portfolio.  In one of his later posts, "HedgeHunter" recommends laying out an investment plan.  Here are a few basics. Follow The Golden Rule of Investing by living below your means and save as much … [Read More...]

Five Essential Investment Decisions

Critical Investment Decisions 1.  Save Follow "The Golden Rule of Investing."  Save as much as you can as early as you can.  If you are not saving, why are you reading this blog?  Investing ideas only follow after one has developed the discipline of saving a percentage of each paycheck. 2.  Education Educate yourself by reading several of the Top Ten Investment Books listed on this … [Read More...]

300 Level

Preparing For Kepler Review

In a few days the Kepler Portfolio comes up for review, so here is the preparation material.  I'll walk readers through the Efficient Frontier, Ranking, and Buy-Hold-Sell (BHS) recommendations. Efficient Frontier:  The Kepler requires some adjustments before the current allocation is fully optimized.  What to do is shown in a later screenshot.  Holdings such as TIP are not improving the … [Read More...]

Preparing for the Gauss Portfolio Review

Prepping for the Gauss shows some changes are recommended.  That becomes apparent when one examines the Efficient Frontier graph shown below.  We need to increase ETFs that have a greater probability of bringing returns to the Gauss.  The second and third screenshots will help identify those ETFs. The following material is not available for publication elsewhere on the Internet. … [Read More...]

200 Level

A Challenge to Active Management

Active vs. Passive Management Scores of papers and blogs have been written about the merits of passive vs. active management.  I've contributed my share and here is one of my earlier posts.  Readers will find more articles by moving over to the right sidebar and looking up Passive vs. Active blogs.  There are over 25 posts on this subject. When you read about active management outperforming … [Read More...]

Portfolio Performance: 25 February 2011

Photograph: Harvest in the Sacred Valley of Peru with Andes in the background. Portfolio Performance Since posting the last performance table, the February 25 update shows nearly all portfolios gaining ground on the benchmarks.  Several of the larger portfolios also exhibited an increase in both the Sortino and Retirement Ratios.  It seems as if the portfolios are structured to show … [Read More...]

400 Level

Sortino Ratio Update

Investors using the TLH spreadsheet and in particular, the SR worksheet, will find this video/audio clip a refresher in updating the Sortino and Retirement ratios. One of the first changes to make in the calculation is to update the inflation rate. The latest data shows inflation moving from 1.1% to 1.2%. Readers can find this information on a site titled, U.S. Inflation Calculator. In the … [Read More...]

Bullish Percent Indicators: Further Market Weakness Beginning To Appear

Bullish Percent Indicators (BPI) are Point and Figure graphs we use to view overall market movements from week to week.  Not only do these indicators provide general market movements based on percentage changes, but the actual values tell us if the market is under valued, fairly valued, or over valued.  The bull market is cooling off based on BPI values and this is why investors need to be paying … [Read More...]