100 Level

Do Fundamental Index ETFs Have A Place In ITA Portfolios?

Fundamental ETFs If you have never heard of fundamental index ETFs you might want to read Robert D. Arnott's book, The Fundamental Index: A Better Way to Invest.  Jason C. Hsu and John M. West are co-authors.  Check out this link to find out a bit more as to how these ETFs are constructed.  Rob Arnott's creditability in the world of investing and ETFs in particular is considerable.  This Seeking … [Read More...]

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...]

300 Level

“Holy Cow” Portfolio

This is the first look at a very interesting portfolio.  In fact, using QPP analysis, it is one of the best I've seen since I started using Considine's software.  This is only the first iteration as I've tested a few combinations that show even better projections.  I'll let Platinum readers chew on this portfolio over the weekend.  Shoot holes in … [Read More...]

Managing Finances

USA Today carried on the front page of the Money section the percentage of those who would rather manage their own money vs. pay someone to do the job.  Those who want to manage their owe finances is 59% while 41% prefer to pay for management.  Those figures surprised me as I did not think that high a percentage wanted to do the work on their own.  We are here to help that 59%. Of … [Read More...]

200 Level

Response to “The Trend is Your Fickle Friend” Article

If you have been reading the Comments on this blog you saw the reference to the Hussman Funds article, "The Trend is Your Fickle Friend."  After reading the article I concluded that my response would be too long for another comment, so I decided to give attention to the article with a full blog post. In the early part of Hussman's article, he points out the problems associated … [Read More...]

Ranking Model Favors Small-Cap and Value ETFs

While the Quantext Portfolio Planner (QPP) software shows a high correlation between the "Big Nine" U.S. Equity asset classes, the Ranking Model, recently unveiled, shows a definite bias toward small-cap and value ETFs.  Below is the data table based on the latest three years of data.  To readers who are aware of the Fama-French research, this comes as no surprise. … [Read More...]

400 Level

Risk-Parity Portfolio: What Is It And What Does A Risk Portfolio Look Like?

Reducing Risk Through Risk-Parity Risk-Parity: Have you heard of the term or seen reference to this style of portfolio construction?  Join the crowd if this is new to you, even though the Risk-Parity idea has been around for quite a few years.  Risk-Parity is an alternative approach to portfolio construction where assets are allocated based on risk rather than allocation according to … [Read More...]

Post-Modern Portfolio Theory

Serious investors interested in digging deeper into the issue of portfolio risk management will find the article titled, Post-Modern Portfolio Theory of great interest. Any link is bound to produce different references over time so here is a clue to finding the article. Google the term, “Post-Modern Portfolio Theory” and then look for the PDF article by the same name. The article is … [Read More...]