100 Level

Respighi’s “Pines of Rome”

While I recommended Ottorino Respighi's "Pines of Rome" back on August 29, 2010, it did not receive much attention at that time as it was a secondary selection.  This week I am making it my first selection, and as I wrote back in 2010, this is a must for any classical collection.  Here is one "Amazon" review that should further spark your interest in this piece of music. "Ever since Toscanini's … [Read More...]

Asset Allocation: Moderate Portfolio

Analysis of a Moderate Portfolio Changing the asset allocation from growth to moderate requires a shift in the percentages allocated to the six basic asset classes. In the following portfolio we lower the percentage allocated to the broad U.S. equities market, REITs, international, and emerging markets. The percentage allocated to bonds increases significantly. Were I not sticking with the … [Read More...]

300 Level

Kenilworth Portfolio Update: 17 October 2011

Although the regular review for the Kenilworth is a few weeks away, purchases and sales this month are reasons for updating the portfolio today.  Readers will note some changes in the Strategic Asset Allocation plan.  For example, shares of VO and VB were sold out of the blend asset classes and those assets were shifted to VTI, the large-cap blend ETF.  VO and VB are highly … [Read More...]

Harry Browne’s Permanent Portfolio: What Is Behind The Asset Allocation?

The December 2012 issue of the American Association of Individual Investors Journal carried an interesting article, The Permanent Portfolio: Using Allocation to Build and Protect Wealth.  The article is all about Harry Browne's portfolio laid out several decades ago.  Browne recommended the follow asset allocation. 1. 25% in stocks. 2. 25% in bonds 3. 25% in cash 4. 25% in gold On … [Read More...]

200 Level

What Are The Disadvantages of Index Funds?

This morning I noticed a reader was searching for disadvantages associated with index funds, so I decided to do a little internet searching to find some of the drawbacks, if any.  As soon as one delves into this question, up pops the issue of passive vs. active investing.  Here are a few resources I located that deal with the question - are there disadvantages to using index funds?  I include … [Read More...]

Active vs. Passive Investing: Part 7

Section Seven of the "Active vs. Passive Investing" article is sumarized the following paragraph. "Some indexers never claim passive investing gives superior returns. They claim only that active investors do better than the benchmark some of the time, and worse some of the time, while passive investing gets rid of that risk by equaling the benchmark every time. They admit some … [Read More...]

400 Level

Bullish Percent Indicator: A Summary

As the summer months approach and we enter the "dog days" of the stock market, we want to be vigilant with respect to market moves.  Particularly moves to the downside as we are interested in reducing portfolio risk.  The following seven basic rules as they relate to the Bullish Percent Indicator are among those we will keep in the forefront of our thinking. … [Read More...]

Rule #6 of Investing

Diversify is Rule #6. Diversity reduces adversity. Simply put, spread your money out over several asset classes. For small accounts, one should at the very least consider stocks (ETF equity), bonds, and an international fund. For larger accounts, broaden into REITs, commodities, and emerging markets using ETFs or index funds. For the very largest of portfolios, break the asset classes into value, … [Read More...]