100 Level

Ten Cardinal Rules of Investing

  Ten Cardinal Rules of Investing   Below are ten cardinal rules of investing.  If followed, investors will avoid 90% of the problems that plague most investors planning for retirement. 1.  Invest frequently and early in life.  This is The Golden Rule of Investing. 2.  Buy index funds or ETFs rather than individual stocks. 3.  Be patient and don't … [Read More...]

My Saving Plan Is In Place: What Is The Next Step?

Is it safe to assume you have read one or more of the following sources? 1) Chapter 1 of The Elements of Investing by Malkiel and Ellis 2) Pages 143 - 144 and 152 - 154 of The Investor's Manifesto by William J. Bernstein 3) Pages 179 - 184 of The Power of Passive Investing by Richard Ferri 4) Rule 1 (Chapter 1) of Millionaire Teacher by Andrew Hallam Using these resources, and … [Read More...]

300 Level

Bohr Portfolio Update: 24 September 2012

Several changes took place in the Bohr Portfolio since the last update.  I sold shares of VOT in order to bring mid-cap growth into balance.  I also sold a few shares of VTV, but large-cap value is still 1.1% above target.  Cash from these sales was used to purchase VWO, PCY, and DBC.  Emerging markets and commodities are within target limits, but I still need to pick up more … [Read More...]

Conservative Portfolio

Below is the QPP analysis of a portfolio suggested by an ITA reader. The portfolio is made up from a wide array of index funds and ETFs.  The projected return of 4.44% immediately indicates this is a conservative portfolio as it is projected to return 2.6% below that projected for the S&P 500.  The projected standard deviation is also low at 8.1%, and the Risk/Volatility ratio at … [Read More...]

200 Level

What ETFs To Use For Different Asset Classes

A question came up regarding what ETFs do we use for the different asset classes.  Below is a listing of the different asset classes and the primary, but not only, ETFs we use to populate the asset classes. … [Read More...]

Active vs. Passive Investing: Part 4

Section Four of the Active vs. Passive paper is long, stretching over two pages.  If I were to quickly summarize pages 5 and 6 it would go like this - stay away from actively managed mutual funds and buy index mutual funds or non-managed index ETFs.  The author accurately points out the high costs of managing a mutual fund that involves active management.  He starts this section of … [Read More...]

400 Level

Bullish Percent Indicators Update: 8/31/2012

As Platinum members can see from the data tables below, many of the major indexes and market sectors are close or currently positioned in the overbought zone.  While the markets may continue holding such lofty values for many weeks, eventually we will see some sort of correction and better buying opportunities. … [Read More...]

When To Buy Back ETFs: Replacing ITARR Sold Positions

When is it time to buy back those ETF positions that were sold when the price of the ETF moved from above to below the 195-Day EMA?  A cogent question came up as a comment this morning.  Here is a paraphrase of the inquiry.  "VEU, VWO, DBC, etc. are all well under their respective RSI 30% indicator.  Even if one is following the ITA Risk Reduction model, does it not make … [Read More...]