100 Level

A Modest Proposal: “New Normal” Portfolio #2

As a follow up to the earlier post this morning, let me propose another "New Normal" style portfolio. This is a variation of the portfolio Bob W. set up several months ago. Keep in mind that I am using a 3.5% inflation rate and the projected return for the S&P 500 over the next year is 7.3% instead of the Quantext Portfolio Planner (QPP) default projection of 8.3%. Below is a screen … [Read More...]

Fiscal Cliff: Time to Activate ITARR Model

We hear a lot about the coming "fiscal cliff."  If Congress does not act before taxes increase and spending cuts go into effect at the beginning of 2013, the country could go into another recession.  Rather than panic, now is the time to pay close attention to each major holding in your portfolio(s).  Instead of limiting the ITA Risk Reduction model to five portfolios, I plan to expand the number, … [Read More...]

300 Level

Schrodinger Portfolio Review: Second Quarter Update

Nearly a month passed since I last updated the Schrodinger Portfolio, a passively managed investment fund.  This portfolio still holds a few ETFs that were purchased approximately ten years ago.  About the only changes in recent months has been the addition of dividends. I'm not too concerned about the three asset classes that are above target. When the political debate on the … [Read More...]

Kepler Portfolio Review: 7 May 2012

Once more it is time to review the Kepler Portfolio.  Back in the middle of April I sold partial positions of VEU and VWO.  Both ETFs dropped slightly in price since those sales.  I still hold an iShare (EFA) in developed international markets and will likely take this down market opportunity to sell off that holding.  The second screen shot shows the holdings in the Kepler … [Read More...]

200 Level

Retirement Planning: Begin Today

"Acting in loco parentis, the government could create powerful incentives to adopt passively managed, appropriately allocated investment programs."- David Swensen Any incentives to move citizens toward some sort of saving plan would benefit society.  More capital is available to develop businesses and retirees would be less dependent of Social Security for sustaining … [Read More...]

Portfolio #3: Ages 36 – 55

This may be the most difficult portfolio, of the five in this series, to construct for several reasons.  1) It covers a significant working and investing period.  2) The early years of investing from ages 36 - 55 are critical so one does not want to give up too much in the way of return.  However, the portfolio cannot be too aggressive during the tail end of this age bracket as the … [Read More...]

400 Level

VTI Within Striking Distance

Readers following this blog know about the Tactical Asset Allocation or market timing method we are about to employ with the Maxwell and Euclid portfolios.  These two portfolios were selected as they consistently lag behind the VTSMX benchmark.  I want to come up with a title more original than the Faber-Richardson method so users can do a search and easily find information on what is … [Read More...]

Action Within Kenilworth Expected

Today is examination day for the Kenilworth and based on the price of several ETFs and their 195-Day Exponential Moving Averages (EMA), we anticipate picking up shares in asset classes that are under target. The two primary asset classes that need particular attention are emerging markets and international REITs.  Here are links showing the relative prices for VWO and RWX and their 195-Day … [Read More...]