100 Level

Eschew Active Management

    Richard Ferri writes in his book, "The Power of Passive Investing," - "Efficient investing is different from efficient markets."  How true.  Following recommendations of Ferri, Bernstein, Swedroe, and other index advocates, we seek to advise investors to set up and manage well-diversified portfolios in order to increase the probability of … [Read More...]

Quantext Portfolio Planner Analysis of Faber Ivy Portfolio

As promised, here is the first of several Quantext Portfolio Planner (QPP) evaluations of the portfolios mentioned in an earlier post.  In this QPP analysis I'll look at the Faber-Richardson Five ETF portfolio.  Equal percentages are allocated to each ETF so there is no fudging with the percentages to increase return or reduce risk.  This array of ETFs is a solid starting point … [Read More...]

300 Level

Bohr Portfolio Review: 27 July 2011

Few changes occurred in the Bohr Portfolio since the last review.  The asset allocation remains the same, and as readers can see in the first screen shot, most of the asset classes are in balance.  Excluding cash, only Small-Cap Growth and Bonds/Income are out of balance.  Limit orders are in place to correct these imbalances, but as I wrote last weekend, I lowered the … [Read More...]

List of Dividend Stocks

Investors looking to build a portfolio from stocks that show continual growth in dividends will find the following list of interest.  From this long list I add a few more screens and the three stocks that pass these additional screens are identified below. Readers are reminded that well over 95% of the investments in ITA Wealth Management portfolios are invested in non-managed index ETFs.  … [Read More...]

200 Level

Asset Allocation: A Medium Risk Portfolio

Moving from Low Risk to High Risk portfolios, the following QPP analysis is for the Medium Risk Portfolio. Examining the projected results, the return is too low.  We expect the projected return to exceed that projected for the S&P 500 by more than one percentage point.  This portfolio is projected to lag the S&P 500, which is not acceptable. … [Read More...]

Portfolio Review

Einstein Portfolio Review With the computer alarm ringing this morning, I noted it was time to update the Einstein Portfolio.  For new members, I cycle through seven key portfolios used as examples for interested investors.  The Einstein Portfolio is one of the seven.  During each review, I first look over the asset allocation worksheet called the Dashboard.  Below is the … [Read More...]

400 Level

Bonds Add Little Other Than Diversification

Using Delta Factor analysis, bonds will add little growth to portfolios over the next six to twelve months.  Their main benefit is to bring down portfolio volatility and I believe one can do a better job of risk reduction with some highly selected stocks and/or implementation of the ITA Risk Reduction (ITARR) model.  Below is the evidence for my tepid view on bonds going forward. Platinum … [Read More...]

Portfolio Risk: Advantages of Semivariance

Semivariance: Preferred Risk Measurement Portfolio risk is given lip service, but rare is the investor who takes pains to actually measure the risks involved in the makeup of their portfolio. It is common to hear an investor indicate they have a well-diversified portfolio if it is made up of more than 15 to 20 stocks. The correlation between the investments might be a mystery, yet the claim is … [Read More...]