100 Level

Motley Fools, Passive & Active Investing

Photograph:  Mt. Bachelor in Central Oregon If you need more evidence to support passive rather than active investing, here is another article on what is happening over on the Motley Fools web site.  In the 1990s, I was a regular reader of material on the Fools site. At the time is was the most popular investment web site to visit.  I devoured their popular book, "The Motley … [Read More...]

Alternative Portfolio: Increasing Allocation to PAAIX

Last week I published two portfolios that included the private equity ETF, PSP.  Here are links to the first and the second portfolios.  In the following portfolio, the allocation to PAAIX is moved up to 24% in hopes of pulling down portfolio volatility.  The assumptions in this analysis are identical to the previous two portfolios.  I did include last Friday's data in this … [Read More...]

300 Level

Bohr Portfolio Review

Since the last update some 33 days ago, shares were added to VTI, VTV, VCR and Berkshire Hathaway (BRK-B) was added to the Bohr.  Yesterday I sold off 100 shares of RWX, but still hold too many based on the optimizer guidelines. Efficient Frontier:  Since the last saved efficient frontier the adjustments in the securities lifted the graph a minor amount.  Berkshire Hathaway (BRK-B or BRK.B) was … [Read More...]

Bohr Portfolio Update: 24 September 2012

Several changes took place in the Bohr Portfolio since the last update.  I sold shares of VOT in order to bring mid-cap growth into balance.  I also sold a few shares of VTV, but large-cap value is still 1.1% above target.  Cash from these sales was used to purchase VWO, PCY, and DBC.  Emerging markets and commodities are within target limits, but I still need to pick up more … [Read More...]

200 Level

Core ETFs Optimized for Maximum Return

To answer my own question of what ETFs are critical to most portfolios, I put together what I call the "Essential Twelve."  The plan is to cover the U.S. Equities, Emerging and Developed International Markets.  REITs, commodities, bond, and treasury instruments are included in the following analysis. The following information is not available for publication elsewhere on the Internet. … [Read More...]

How Important Is Asset Allocation?

My favorite investment writer is William J. Bernstein, author of several investment books and the editor of the Efficient Frontier.  This morning I was scanning the data files of ITA Wealth Management and found where one reader clicked on one of the older articles from Bernstein's Efficient Frontier. [Be sure to read the section, 'Let George Do It.']  I myself have written about the Brinson et. … [Read More...]

400 Level

A Twist to the ITA Risk Reduction Model

Photograph: Mountains near Emerald Bay at Lake Tahoe.  Taken from the California side of the lake. While we want to keep the ITA Risk Reduction model as simple as possible, there is another wrinkle available for sophisticated investors.  Platinum readers will be interested in the explanation that follows. Platinum membership is available for $5.00 per month.  Learn how to reduce … [Read More...]

Examining Equity Markets Using the “Delta Factor”

Read this article as it supports the findings of the "Delta Factor" probability projections shown below.  To learn more about the Gordon Equation, search that term on this blog. Which equity ETFs have the greatest probability of doing well over the next six to twelve months?  The following analysis looks at both a three- and five-year history of a variety of equity ETFs.  … [Read More...]