100 Level

Developing a Passive Management Investment Strategy

Passive investing is intellectually appealing to the investor willing to shun Wall Street propaganda and hype from a 200 billion dollar industry.  Just to be clear, we concede there are, and will be, active money managers who outperform their benchmark.  However, as the years go by the winners dwindle in number and it is very difficult to select which managers will be successful thirty … [Read More...]

Rule #5 of Investing

When we get to Rule #5, we assume a savings plan is in place and we have converted a frivolous spending habit into real dollars. Credit card debt is zero or in decline. After much reading and study, we are convinced of the importance of asset allocation. If you made it this far as a reader, you are in the process of escaping the “dark side” of investing and that is, you are no longer … [Read More...]

300 Level

Portfolio Update

Curie Portfolio: An Update In the screen shot below, Platinum members will see the Dashboard of the Curie Portfolio. Several asset classes are out of balance and I have numerous limit orders in place to take care of these inequities.  Unfortunately, the market walked away from many of my limit orders and that is why the ITA Index is currently outperforming the Curie Portfolio. You can see … [Read More...]

12-ETF Portfolio: Another Look

A Basic Portfolio Simplicity, when it comes to design, is an admirable feature and the 12-ETF Portfolio embodies this characteristic.  In addition, the projected numbers are quite respectable as readers can see from the following QPP analysis.  When designing or constructing a portfolio specific goals are set, although it is more difficult to attain those goals when the market is priced … [Read More...]

200 Level

Merging The Swensen And Faber Portfolios

Swensen and Faber-Richardson Portfolios Merging the Swensen and Faber-Richardson portfolios is an effort to extract the excellent logic behind the "Swensen Six" portfolio and expand the number of asset classes as advocated in the "Faber-Richardson Ten" portfolio.  Parts of the logic behind the "Swensen Six" can be found in this Seeking Alpha article.  In … [Read More...]

How Many Asset Classes or ETFs Are Required to Construct Diversified Portfolio?

One of my favorite blog writers is Geoff Considine of the Portfolioist.  Yesterday, November 28th, Dr. Considine published an interesting article that begins to answer the above question - How many asset classes or ETFs are necessary to build a well-diversified portfolio?  Considine posits ten (10) asset classes will provide sufficient diversification.  David Swensen argues in his book, … [Read More...]

400 Level

“Delta Factor” for Basic EFTs

One Platinum member ask to see what the current "Delta Factor" looks like.  It should come as no surprise that a market as high as this one will bring a lot of "Red" out in the "Delta Factor" table.  Below is the table for a number of basic ETFs used in a variety of portfolios.  The results take in the period of 3 February 2009 through 3 February 2012. … [Read More...]

“New Normal” Three-Year Risk Reduction Analysis

In the prior blog entry I used five years of data for the QPP analysis of the "New Normal" portfolio when the allocated percentages were based in equal risk rather than allocating assets according to capitalization.  In this QPP analysis I use three years of data instead of five. This blog entry is not for publication elsewhere on the Internet. … [Read More...]