100 Level

What The Experts Say About Index Investing

Photograph:  Georgia O'Keeffe Museum Research Center - New Mexico   Perusing the Bogleheads web site, I found this long list of quotes from well known investment writers and managers.  Here is what they have to say about index investing.  These bits of wisdom further explain why I favor tilting investments toward non-managed index vehicles.  Further, I favor ETFs for … [Read More...]

Developing a Portfolio Plan

Basic Suggestions in Portfolio Development* In the beginning stages of setting up a portfolio plan, there are a few essential decisions investors make. Here are a few hints to consider. Follow "The Golden Rule of Investing." Save as much as you can as early as you can. Develop a savings plan as there is no avoiding this step. Live below your means.  Learn … [Read More...]

300 Level

Portfolio Update

Curie Portfolio: An Update In the screen shot below, Platinum members will see the Dashboard of the Curie Portfolio. Several asset classes are out of balance and I have numerous limit orders in place to take care of these inequities.  Unfortunately, the market walked away from many of my limit orders and that is why the ITA Index is currently outperforming the Curie Portfolio. You can see … [Read More...]

IVY-2: Ten ETF Portfolio

The second portfolio recommended by Faber and Richardson contains ten ETFs.  There are a few new asset classes added such as small-cap, emerging markets, and foreign or international REITs.  Are we able to improve the Return/Risk ratio and elevate the Diversification Metric with these additions?  Check the analysis below for the answer. A "seat of the pants" analysis … [Read More...]

200 Level

The Power of Asset Allocation

Photograph: River activity on the Rhine River With permission from a Platinum member, here are some statistic of a portfolio launched in early January of 2002.  At the close last week, this portfolio generated an annualized return of 8.1% vs. 4.8% for the VTSMX benchmark.  That 3.3% point difference on an annualized basis resulted in a $26,573 portfolio moving up to $47,235 over the … [Read More...]

Is It Fair To Compare Performance Results Of Different Portfolios?

Is it fair to compare performance results of different portfolios?  ITA Platinum members have see a number of comparisons on this blog and I plan to publish more results.  However, there are inherent problems when it comes to portfolio performance comparisons.  Let me list a few as it is important to keep in mind these problems. 1) When selecting a sample portfolio from a web site … [Read More...]

400 Level

Maxwell Portfolio Update: 5 July 2012

Examining the Maxwell asset allocation below, we note that developed international and emerging markets are still priced below their respective 195-Day Exponential Moving Averages (EMAs).  We are also below target in commodities as we are waiting on a price rebound.  Exposure to growth stocks is accomplished by holding shares in the blend column. … [Read More...]

News From Recent Conference

Two days ago I returned from a conference in St. Louis.  Our hotel overlooked Busch Stadium where the St. Louis Cardinals were playing the Washington Nationals in the first playoff series.  Walking on the streets among the fans was a blast as everyone was in a good mood and it was easy to talk with strangers, particularly when I mentioned Tommy Herr, a former second baseman with the … [Read More...]