100 Level

Exactly What Is The Momentum-Optimization Model?

Exactly what is the Momentum-Optimization Model (MOM) and how does it work?  The very first step in this process is to define what securities one wishes to use to build the portfolio.  This is easier managed and accomplished with index investments vs. selecting individual stocks.  For example, one is likely to choose VTI to always have some role in the portfolio whereas a well-known stock such as … [Read More...]

Five Investing Problems and How to Solve Them

Photograph: Boat dock connected to Clark's Fish Camp near Jacksonville, Florida When talking with individuals about investing, problems and excuses emerge in the conversation.  Here are a few of the issues I hear frequently. 1.  I have no interest in the subject. Lack of interest is by far the number one problem.  Yes, I would like to build a retirement account and I will … [Read More...]

300 Level

The Basic Portfolio & The Delta Factor

When setting up a Basic Portfolio, investors want to include at least the "Big Six" asset classes from the U.S. equities market.  Then add some bonds, developed international markets, emerging markets, and REITs.  For larger portfolios, commodities, international REITs, and international bonds are common additions. Remember, this is a basic or core portfolio. This blog entry … [Read More...]

Newton Portfolio Update: 15 May 2012

How well is the Newton Portfolio performing?  Below are screen shots of the Dashboard and Portfolio Performance data.  Even though the Newton is not part of the ITA Risk Reduction experiment, I did lighten up on both international and emerging markets.  The follow table reflects asset classes where I sold some holdings in VEU, VWO, and DBC.  So far those moves helped the … [Read More...]

200 Level

Solving Investment Problem #5: It is too late to start saving.

Balderdash!  It is never too late to begin saving for retirement.  Yes, it is preferred to follow "The Golden Rule of Investing" and start saving as early as possible, but it is never to late to begin.  Let me illustrate with a short story. I know of one family that had almost no savings by age 57.  The house was paid in full, but savings for retirement were close to … [Read More...]

Developing a Strategic Asset Allocation Plan

The “Golden Rule of Investing” is to save as much as you can as early as you can.  That simple guideline is fundamental to any investment plan and it is critical to know why the word early is so important.  What comes second (portfolio planning) is also important, but it cannot be implemented unless one has saved money for investing. In this post, we assume the reader has a … [Read More...]

400 Level

Bullish Percent Index: Indicators for 24 May 2013

The following Bullish Percent Index (BPI) information is slightly mixed, but overall, the markets remain strong.  Only in one sector, Utilities, was the defensive team able to secure the ball from the offense.  Platinum members will find the following tables of interest.  Remember that our most important BPI is the NYSE and that BPI value improved slightly over the last week. BPI Markets:  All … [Read More...]

Modified Ivy Portfolio Risk Reduction Model Working

One year ago, motivated by the writings of Faber and Richardson in their book, The Ivy Portfolio, I set up one portfolio with the expressed purpose of employing a risk reduction model similar to that outlined in the book. About the same time I expanded the experiment to include four other portfolios I was tracking for relatives and friends. How is the experiment working? Before delving into the … [Read More...]