100 Level

Grandchildren: Use Index Funds

Build Your Portfolio Using Index Funds For most investors, what type of investment vehicles to use is a no-brainer.  Unless you are extremely skilled, stick to index mutual funds or index ETFs and stay away from selecting individual stocks as the way to build the core of your portfolio.  Become a passive investor or at the most, a Mosaic investor.  Educate yourself and then come to … [Read More...]

QPP Challenge

For readers using the QPP software, here is a challenge.  Come up with a portfolio that meets the following standards. Include between 8 and 20 ETFs. The projected return will exceed the projections of the S&P 500 by one percentage point.  As an example, I set my S&P assumption to be 7.0% so the projected return will come in above 8.0% The projected risk or uncertainty is … [Read More...]

300 Level

“Creme List” for January 14

  "Creme List" of Stocks Platinum members will find few changes in the "Creme List" this week.  Coach (COH) is back on the list, but otherwise, no significant changes. If you are running QPP portfolio analysis, adding three to five of these high quality companies will frequent increase the overall diversity and elevate the Diversification Metric. … [Read More...]

Einstein QPP Analysis: Reducing High Correlated Assets

As promised in the prior post, here is the QPP analysis of the Einstein.  Pay particular attention to the Correlation Matrix as that is the reason for posting this blog.  Note how most of the equity ETFs are highly correlated. … [Read More...]

200 Level

Retirement Portfolio: Part Five

If one is willing to add a few individual stocks to a sample retirement portfolio, what does the allocation look like when optimized?  In the following portfolio I added several ETFs to what one might consider the basic group.  These include SLV, DVY, and IDV where the latter two are dividend generators. Special Note:  The assumed growth rate of the S&P 500 was lowered from 7.0% to 6.0% for … [Read More...]

Kenilworth Portfolio Review: 19 December 2011

Since the Kenilworth Portfolio is lagging its VTSMX benchmark, I am paying closer attention to the asset allocation.  In addition, the Kenilworth is a candidate for the ITA Risk Reduction model.  Checking moments ago, all critical ETFs with exception of domestic REITs (VNQ) are priced below their respective 195-Day EMFs.  No limit orders are in place for the Kenilworth and we are in … [Read More...]

400 Level

VTI PnF Graph

If the market holds or rises from this point, VTI will not be sold out of any portfolios.  That decision is according to the ITA Risk Reduction model rules.  With this in mind, what is the Point and Figure (PnF) graph of VTI telling us?  I expect PnF graphs are new to most readers and I am no expert, as mentioned in a prior blog post.  So we will ease into this topic.  … [Read More...]

Delta Factor of International ETFs

Readers interested in equity and bond "Delta Factor" projections will find the following international "Delta Factor" data table of interest.  For this set of ETFs, the reference or standard upon which the results are tested is the international iShares, EFA. I used three years of data to reduce the number of "short records."  Only the two Indonesia ETFs … [Read More...]