100 Level

What To Do As Congress Debates and Postures

Investors are faced with many questions as Congress continues to waste precious time in solving what has become known as the "Financial Cliff."  How are you going to handle your portfolio over the next few months and what are the best practices to follow?  My advice is to do very little to next to nothing, but to expect a bumpy ride.  When I say "very little," I would not be adding large shares to … [Read More...]

Balanced Portfolio: Number 3

Portfolio number 3 in this series is what I call a Balanced Portfolio.  Bonds are lowered to 40% of the portfolio so this is still quite a conservative mix of assets.  This portfolio comes close to fitting the 60/40 equity to bond ratio, sort of a standard when it comes to building a middle of the road portfolio.  Note the changes that are taking place in the five key metrics.  … [Read More...]

300 Level

Sample Portfolio For The Mosaic Investor

Investors who use a few individual stock will be interested in the following portfolio suggested by a reader.  By Mosaic, I mean an investor who uses an array of index ETFs (or index funds) and then sprinkles in some individual stocks. QPP Analysis of Suggested Portfolio:  In this analysis the S&P 500 is assumed to grow at an annual rate of 7.0% so this portfolio is projected to outperform … [Read More...]

Rebalancing Threshold Limits

What is the proper percentage to use as the Threshold Limits or Boundary Targets for rebalancing a portfolio?  For example, if we set a target of 15% for an asset class, what upper and lower limits are considered acceptable if the asset class is considered to be in balance.  In the ITA Wealth Management portfolios we have gone as high as 35% and as low as 20% for our target limits.  … [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...]

Portfolio Performance: 12/3

Below is the first draft of the 12/3/2010 portfolio performance. First draft in that not all the November or December dividends are included for all the portfolios. Most of the portfolios are hanging on to leads over the VTSMX. Perhaps of more importance are the positive values showing up for the Sortino and Retirement Ratios.   [Table=49] * Insufficient data. Platinum memberships are … [Read More...]

400 Level

Why Pay Any Attention to the Bullish Percent Indicator?

Are there logical reasons to support paying attention to the Bullish Percent Indicator?  Simply put, the Bullish Percent Indicator (BPI) draws special attention when the market or market sectors are overbought or oversold.  When the BPI exceeds the 70 percent level, it is time to be wary of the market.  Demand is high and supply is low.  Everyone that wants in the market and … [Read More...]

Optimization-Momentum Recommendations For Kepler

As promised here are the optimization-momentum recommendations for the Kepler Portfolio.  We first begin with the Efficient Frontier and see that the current portfolio, after the recent transactions, is moving closer to the optimized portfolio. Efficient Frontier:  The current portfolio is represented by the yellow diamond box and the optimized portfolio by the small red dot.  The recent … [Read More...]