100 Level

Requesting Yield To Exceed 3.0%

This morning I had an article published over on Seeking Alpha.  One reader requested what would happen if one of the constraints was to seek a yield of 3.0% or higher.  Below is the Optimization Analysis that meets this request when using the 16 ETF portfolio. The add link function does not seem to be working this morning so below is the URL to the SA … [Read More...]

Dollar Cost Average, Value Average, or Jump In Now

"Once desired allocation is determined, what is best way to execute the plan:  Dollar Cost Average (DCA)  or Value Average (VA) over a period of time or all at once?"  This was question 17 on the list from this blog entry.  I don't have an easy answer to this question.  Maybe I should if this site provides any clues.  Considering that Rukeyser's … [Read More...]

300 Level

Twenty ETF Portfolio

Ivy 20 Portfolio Now we move to the most complex of Faber's Ivy Portfolios. This 20 ETF portfolio consists of 13 to 17 asset classes depending on how one breaks down the different ETFs. To keep all of these Ivy Portfolios simple, we invest the same percentage in each ETF. A few of the ETFs in this portfolio have not been operational for a full three years. This required the time frame to be … [Read More...]

Checking in on the Bohr Portfolio

In the News & Update footer, I mentioned at the beginning of the week I would be checking in on the Bohr, even though a review of this portfolio took place a week or so ago.  In this review I want to take a look at the "Delta Factor" following a QPP analysis to see if any under target asset classes are in the "Buy" zone.  But first, examine the Dashboard worksheet … [Read More...]

200 Level

“New Normal” Portfolio With Risk Reduction Allocation Plan

Following up on the risk adjusted Ten ETF Portfolio analyzed yesterday, what does the "New Normal" group of stocks and ETFs look like when the same risk management algorithm is applied.  In this analysis I was able to stretch the historical period out over five-years.  The percentage allocated to the different stocks and ETFs look reasonable when the low variance BND ETF is not … [Read More...]

Disadvantages of Passive (Index) Investing: Are There Any?

The arguments in favor of passive investing are far too compelling to completely ignore.  If there are any disadvantages, what are they? 1.  At one time the availability of passive or index funds were limited, particularly in certain asset classes.  Availability of index funds is no longer a problem as ITA readers know.  We can find an index ETF to fill every asset … [Read More...]

400 Level

Identifying ETFs For Possible Purchase

Back on December 2, 2011, I introduced a new set of metrics for identifying which ETFs have a higher than average probability of performing well over the next six to twelve months.  This post can be found at this location.  Seven metrics go into identifying which ETFs are showing the strongest signals.  Here are the indicators that go into this valuation system. This material is … [Read More...]

Point and Figure Checkup

Run each of your stocks, funds, and/or ETFs through a Point and Figure (PnF) checkup using this link.  Do you observe O's or X's in the right-hand column?  If the slope of the line is positive, relax.  However, if you find O's in the right-hand column and the slope of the line is negative, examine closely what is going on.  Is the price of the security above or … [Read More...]