100 Level

Active vs. Passive Management

Active Investing:  Given that almost all money management is active, alpha is obviously added to the portfolio though this style of investing.  Not so quick.  While one would expect this assumption to be true, otherwise why is active management so popular. Active investors purchase securities they deem to be undervalued while the investor on the other side of the trade concludes … [Read More...]

Establishing a Sell Discipline

Knowing when to sell seems to be a more difficult decision than when to buy.  Once a stock or ETF position is in place, we tend to forget about it, whereas a lot of attention is paid to the entry point.  The sell decision is on my mind as I've given a lot of thought to the sell point for the Maxwell and Euclid portfolios.  For investors less inclined toward technical analysis … [Read More...]

300 Level

Eight Asset Porfolio

Photograph: When I first walked Devastation Trail in late 1961 or early 1962, there was no vegetation to be seen as it was soon after the eruption. Consider the following portfolio that holds eight assets including cash.  In this analysis, I am using the 20-year treasury ETF, TLT, to represent cash, a substitution that gives the portfolio a slight boost over current money market rates.  … [Read More...]

Preservation of Principle

Tactical Asset Allocation for Newton Portfolio Holding on to the nest egg were my marching orders.  I did not stand in the way of these instructions for the Newton Portfolio.  With the market climbing as it has since early 2009, moving into cash makes some sense.  In an attempt to preserve capital, numerous trades took place in March and early April.  Selling off some asset … [Read More...]

200 Level

Low Risk Retirement Portfolio

Yesterday, I wrote an article for Seeking Alpha and one reader suggested a simple portfolio where equal percentages be allocated to VTI, GLD, SHY, and TLT.  Exactly what does such a portfolio look like when a Quantext Portfolio Planner (QPP) analysis is applied?  What does the correlation matrix look like and would such a portfolio work as one prepares for retirement?  The following … [Read More...]

Smartest Low Risk Portfolio

This is the first of four portfolios that run from low risk to high risk or aggressive growth.  One Quantext Portfolio Planner (QPP) analysis is already available on the Internet at Seeking Alpha for a medium risk portfolio.  That is the fifth portfolio in this series of analysis.  In the following example, I make a few changes in the ETFs as I prefer using the low-cost Vanguard … [Read More...]

400 Level

Risk Parity Analysis of Modified “Ivy-10″ Portfolio

When investors populate their portfolios with stocks or equity ETFs, it is easy to forget just how exposed the portfolio is to risk.  The following analysis is a reminder of the high risks we take when constructing portfolios.  To know a little more about Risk Parity, check out this link. … [Read More...]

Equity ETFs And The “Delta Factor”

Are there any areas of the equity market that look positive for the next six to twelve months?  Even with a relatively strong market this summer, there are pockets of opportunity and they are indicated in the following table. … [Read More...]