100 Level

Sample Portfolio Requested By Platinum Member

The following set of tickers and percentages were sent to me for analysis.  I used five years of historical data and set, as I generally do, a 7.0% return projection for the S&P 500.  I used TIP (1.0%) for the cash holding.  That choice has little impact on the final projections.    Below is the analysis data.  Instead of me writing up my observations, I'll … [Read More...]

Investing 102: Strategic Asset Allocation Planning

Investing 102 - The SAA Plan As a followup to Investing 101, where does one go after reading some verbal guidelines.  Read on.  Laying out a Strategic Asset Allocation (SAA) plan is high on the to-do list.  What is a SAA plan? An example is shown below in the Dashboard worksheet extracted from the TLH spreadsheet.  The arguments for such a plan is explained in some … [Read More...]

300 Level

Walgreen (WAG): A Service Company of Interest

As long-time ITA readers know, I am a strong advocate of using non-managed index ETFs to build portfolios.  However, there are times when I will add an individual stock, particularly if the Quantext Portfolio Planner (QPP) analysis shows the stock will increase diversity and lower portfolio volatility.  While I have not run a QPP analysis with Walgreen (WAG) in a portfolio, this is a stock I've … [Read More...]

Mosaic Portfolio Lookback – 31 March 2009

Here we are in the depths of the bear market on March 31, 2009.  What signals or information come out of a QPP analysis and what is the Delta Index worksheet showing us?  Look over the QPP analysis carefully and see if you spot any unusual signals. The historical data does not look good, but the projections for return and standard deviation are about average.  We have not seem too … [Read More...]

200 Level

How Does A Beginning Investor Use The ITARR Model?

When one has been saving and investing as long as I have, it is easy to forget many of the initial steps necessary to launch and manage a portfolio.  In this blog post, I will attempt to fill in a few gaps, and even with this effort, I will most likely miss something.  That is why I appreciate questions.  I am using the Gauss Portfolio as my model for several reasons.  1) It is … [Read More...]

Ranking Vanguard’s Sector ETFs

One of the portfolios up for review this week is the Gauss.  In preparation for that update I'm looking for ways to improve the performance of this portfolio as it still lags the VTSMX benchmark.  I thought I would rank the Vanguard sector ETFs (minus VNQ) to see if there are any potential "momentum" ETFs among this group.  Below is the latest ranking. Sector Rankings:  The financial (VFH) ETF … [Read More...]

400 Level

If I Were To Add One Sector…

If I were to add one sector to my portfolio, which one of the eleven Vanguard sector ETFs would I purchase right now?  Check out the "Delta" and "Delta Factor" data in the table below for the quick and easy answer. … [Read More...]

Hierarchy of Buy and Sell Decisions

Burlington Northern operating in the wide open spaces of the Northwest. Hierarchy of buy and sell decision is critical, particularly when the market is running at current high levels.  Here are some guidelines I use when it comes to rebalancing the portfolio or making buy, hold, and sell decisions. The following information is not available for publication elsewhere on the Internet. … [Read More...]