100 Level

Current Valuation of U.S. Market

This past weekend I was in conversation with an investment manager and he argued that stocks are currently undervalued.  In fact, they are at their lowest value since the 1950s.  Frankly, I was shocked to hear this analysis.  That conclusion did not correlate with my sense of the market so I began to search the Internet for market valuation figures and I came upon a most interesting … [Read More...]

Is It Wise To Pay An Advisor For Access To DFA Funds?

Save the Fees Save the fees and manage your own money using low cost ETFs.  You are going to be dollars ahead and here is the evidence.  Let me describe the process I went though to come to this conclusion - and I am not finished with the analysis.  This data is not going to win me friends among DFA advisors. I logged on to one of the premier web sites on the Internet to find … [Read More...]

300 Level

Dividend Oriented Stocks Are Limited Under The Latest Screen

Dividend Stocks of Interest From time to time I will post a few stocks for Platinum members interested in spicing up their portfolio.  While it is difficult to build a portfolio using only stocks and have that portfolio outperform the stock market over the long run, it is possible to pull down portfolio risk by adding companies that have a low correlation with the broad market.  … [Read More...]

Faber – Richardson “Ivy Model” Review

In response to a recent question, allow me to review the Faber - Richardson model as described in their book, "The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets."  The ITA Risk Reduction model focuses on the "Avoid Bear Markets" part of the Faber book. Here are the basic Faber - Richardson rules one can use with any portfolio.  Investors … [Read More...]

200 Level

Beginner’s Portfolio

If just starting out as an investor, the following portfolio is a slight modification from the Faber-Richardson Ten Portfolio as published in their book, The Ivy Portfolio.  I replaced GSG, a commodity ETF with a gold ETF, GTU.  Instead of VB, I inserted IWN which provides a value tilt to the portfolio. This material is not available for publication elsewhere on the Internet. … [Read More...]

Requesting Yield To Exceed 3.0%

This morning I had an article published over on Seeking Alpha.  One reader requested what would happen if one of the constraints was to seek a yield of 3.0% or higher.  Below is the Optimization Analysis that meets this request when using the 16 ETF portfolio. The add link function does not seem to be working this morning so below is the URL to the SA … [Read More...]

400 Level

Equity ETF “Delta Factor” Projections: Three & Five Years

What are the projections for Equity ETFs using three and five years of historical data?  The projections based on five-years of historical data spans the "Great Recession of 2008" while the three-years of historical data includes one of the better bull markets of recent memory.  With this historical context, we can almost visualize the projections for the following "Delta Factor" data tables.  … [Read More...]

Bullish Percent Indicators: 24 August 2012

Little changed this week in either the market or sector Bullish Percent Indicators.  Check for differences in the two tables shown below by looking at the last two numbers in each column. … [Read More...]