100 Level

William J. Bernstein Quotes

If you enjoy reading quotes as much as I do, check these out. I thought pulling out a few choice quotes from William Bernstein’s latest book, “The Investor’s Manifesto” would be of interest to readers.  For your reading pleasure on a Saturday afternoon. “For the past 200 years things have always worked out well in the long run for the owners of U.S. stocks. … [Read More...]

Grandchildren: Monitor Your Portfolio

"You can't manage what you don't measure." The large majority of investors fail when it comes to monitoring their portfolio.  What all is involved in portfolio tracking? 1.  Internal Rate of Return (IRR) of the portfolio 2.  IRR for a benchmark such as the VTSMX index fund 3.  Table to show the asset allocation plan 4.  Risk measurement All the … [Read More...]

300 Level

Kenilworth Receives Cash Infusion

Last week two cash deposits came into the Kenilworth permitting more limit orders to be set in an effort to bring the asset classes into balance.  In the following screen shot, readers can view the current Strategic Asset Allocation plan and where we are in the building process for this young portfolio. Platinum members will recall, when this portfolio was launched, the plan was to build up … [Read More...]

Accuracy of QPP Projections

How accurate have Quantext Portfolio Projections been over the last bear and bull markets.  Back on 12/31/2007, QPP projected an annualized return of 7.4% with a standard deviation of 10.5% for a portfolio made up of SPY, IWM, EFA, EEM, TIP, TLT, AGG, and IEF.  The exact percentages are listed in the screenshot below.  That low risk percentage looked great in December 2007, but we did not foresee … [Read More...]

200 Level

Smartest High Risk Portfolio

This is the last article in this series of QPP analysis of Solin's "supersmart" portfolios.  Of all the portfolios, this one is perhaps the weakest.  Read on to understand why. … [Read More...]

Second Retirement Rule: Know Your Requirements

While there is no question about Rule #1 of following The Golden Rule of Investing, all rules thereafter could come in any order.  The second one I've selected is to know your retirement requirements.  How much will you need monthly to live comfortably?  It is not unusual to hear a figure of 80% of your last salary.  I would set that as a minimum figure.  If your last annual salary was $70,000 per … [Read More...]

400 Level

The Delta Factor and International Markets

Recently I was looking at Price-195-Day EMA graphs for a number of international countries and I came upon one for Italy, a country in distress.  While I normally view this graph over a one-year period to gain additional clarity, I changed the scale to three years as that is the time frame I used for the QPP and Delta Factor analysis.  I noticed that EWI hit a peak around May of 2012.  As a … [Read More...]

VTI PnF Graph

If the market holds or rises from this point, VTI will not be sold out of any portfolios.  That decision is according to the ITA Risk Reduction model rules.  With this in mind, what is the Point and Figure (PnF) graph of VTI telling us?  I expect PnF graphs are new to most readers and I am no expert, as mentioned in a prior blog post.  So we will ease into this topic.  … [Read More...]