100 Level

My Saving Plan Is In Place: What Is The Next Step?

Is it safe to assume you have read one or more of the following sources? 1) Chapter 1 of The Elements of Investing by Malkiel and Ellis 2) Pages 143 - 144 and 152 - 154 of The Investor's Manifesto by William J. Bernstein 3) Pages 179 - 184 of The Power of Passive Investing by Richard Ferri 4) Rule 1 (Chapter 1) of Millionaire Teacher by Andrew Hallam Using these resources, and … [Read More...]

Ten Biggest Investor Mistakes – #3

  Wealth Management – Mistake #3: Many investors are too conservative at an early age. Don't load up your portfolio with bonds when you are in your twenties and you have forty years to save. Let me illustrate this mistake with a real example. Husband and wife saved identical amounts during their working years.  The wife’s savings were divided almost equally between … [Read More...]

300 Level

Portfolio Construction, Maintenance, & Monitoring

To be a successful investor, the trio of portfolio construction, maintenance, and monitoring are all essential.  While the importance of portfolio construction is receiving less attention than it did in the 1990s, detailed research is yet to be conducted on its significance.  The research I've read is too broad with a focus on stocks, bonds, and cash.  Due to its complexity, it … [Read More...]

X-Ray of New Normal Portfolio

From time to time I will run a QPP analysis on a current version of the "New Normal" portfolio, a defensive set of stocks and ETFs.  Below are the screen shots showing the X-Ray analysis for the NN portfolio as determined by Morningstar.  Any comments on this analysis and does this x-ray analysis show this to be a defensive portfolio?  If so, in what ways? … [Read More...]

200 Level

Twelve ETF Portfolio

When designing a portfolio several goals need to be considered.  Here is a blueprint for portfolio construction. Build the portfolio using non=managed ETFs and index funds.  Don't over complicate by using too many ETFs. Keep costs low by using inexpensive ETFs.  For most investments we use Vanguard ETFs. When running a QPP analysis, set these standards. Projected … [Read More...]

Constructing a Simple Seven ETF Portfolio

Looking for a conservative portfolio with reasonable QPP values?  Check out the following asset allocation plan that includes 40% allocated to bonds and income with an added bent toward value as advocated by Fama & French.  This portfolio covers the global market, both in equities and REITs.  The EFV ETF skews the portfolio toward the value side. … [Read More...]

400 Level

Expecting Market Volatility and What To Do About It

If you need additional evidence that we are in a season of volatile markets, check out this Portfolioist article.  Recognizing that market ups and downs are not about to leave us very soon, what are some options available to investors?  How can we temper daily market moves of 2% or more?  Risk reduction is becoming more and more important. A few days ago, I had reason to pull … [Read More...]

Bullish Percent Index Data for May 17th

Just when one begins to think the market cannot get better - it does.  This week wrapped up another stellar five days for stocks based on a number of Bullish Percent Indicators (BPI). The following information is not available for publication elsewhere on the Internet. … [Read More...]