100 Level

Five Essential Asset Classes

Five ETF Basic Asset Class Portfolio There are specific asset classes that need to be part of every portfolio.  Here is a list of the basic group I include in every portfolio.  While the ETFs shown below serve as examples, every portfolio will eventually include these five asset classes. U.S. Equities - VTI Domestic Bonds - BND or AGG Developed International Markets - VEU or … [Read More...]

Active, Passive and Mosaic Investing

Mosaic As An Investing Style The subject of active vs. passive investing came up a few times on a forum where I'm active.  Readers know my inclination toward passive investing rather than an active investing style.  This link was cause for one of the discussion points as the "Intelligent Speculator" author speaks of "looking for high quality dividend stocks that help … [Read More...]

300 Level

“New Normal” Three-Year Risk Reduction Analysis

In the prior blog entry I used five years of data for the QPP analysis of the "New Normal" portfolio when the allocated percentages were based in equal risk rather than allocating assets according to capitalization.  In this QPP analysis I use three years of data instead of five. This blog entry is not for publication elsewhere on the Internet. … [Read More...]

Bohr Portfolio Update: 30 May 2013

A few adjustments in the Bohr Portfolio took place over the last month based on recommendations coming out of the optimization-momentum spreadsheet.  For example, shares of BND and TIP were sold and shares of VCR and VTI were added to the portfolio.  The Bond and Income asset class is below target due to sales of BND and TIP, and Large-Cap Growth moved above target as a result of adding VCR to the … [Read More...]

200 Level

Euclid Portfolio Review: Major Asset Allocation Adjustment

What does the Strategic Asset Allocation plan look like for a portfolio built around the "New Portfolio" model?  Using the Euclid as a model, we move from having nearly all the asset classes in balance to a sea of blood with the new allocations.  Check out the Euclid Dashboard shown below. … [Read More...]

Going Wobbly On Equities

With the market hovering around all-time highs, perhaps it is time to "go wobbly" on equities.  What might a 20-ETF portfolio look like if the bond requirement were elevated to 30% of the portfolio.  The following is not an operational portfolio, but a sample of securities one might use to build a well-diversified portfolio. Efficient Frontier:  One ETF stands out in the following graph and it … [Read More...]

400 Level

ETF Indicator Update

Below is an incomplete list of ETFs using in the ITA portfolios.  As I come across ETFs of interest, I add them to the list.  It takes time to update the list as each indicator (now eight in number) is entered manually.  Of the ETFs currently on the list, PCY is one that is very close to a Buy.  If the percentage exceeds 100% the ETF goes on the Buy list.  PCY is about one … [Read More...]

Preparing for Euclid Update

This pre-update is something I've not done before as I did not have some of these tools just a few weeks ago.  This blog entry takes a look at the Efficient Frontier of the Euclid and compares it with the S&P 500.  In addition, I look at the Rankings to see if some available cash might be used to bolster shares in ETFs that are expected to perform well over the next few months. Efficient … [Read More...]