100 Level

Overcoming Fear of Investing

Conquer Fear of Investing   Investing is a deep mystery and I am completely lost. Are you lost or just not interested?  In either case, start simply. Read the Beginning Investors posts found in the Categories section on the right sidebar. I'm afraid I will lose money. Don't jump into the market with all your savings.  Dollar cost average and invest a modest sum every month … [Read More...]

Are You Warren Buffett or Charlie Steadman?*

For every Warren Buffet there are a hundred Charlie Steadman's.  While nearly every investor has heard of Buffett, few remember Charlie Steadman. Is there a reason for this short memory? “Until he died at age 83 in 1997, Charlie Steadman burned through investors’ assets at a rate unseen in the fund business since the Great Depression–and, we hope, never to be seen … [Read More...]

300 Level

Dividend Portfolio

Looking for a low risk dividend portfolio?  Check out this portfolio sample that I posted over on Seeking Alpha.  There are a number of positive features to this portfolio.  First, it meets all the QPP analysis goals as laid out in the article.  Second, it provides good diversification without too many ETFs. There is a negative or two.  If one is using this array of … [Read More...]

Retirement Ratio: Building a Higher Standard

The Ultimate Return/Uncertainty Ratio Built into every TLH spreadsheet is the "Retirement Ratio," a look-alike of the Sortino Ratio (SR).  Readers can read about this Return/Uncertainty ratio over on Seeking Alpha.  Inside the Sortino Ratio is a trademark term, Desired Target Return™, a percentage determined by the investor.  In the Retirement Ratio we use Portfolio … [Read More...]

200 Level

A Lesson from Gauss

Carl Gauss is considered by some as the most brilliant mathematician who ever lived.  He is sometimes called called the "Prince of Mathematicians."  I even named one of my computers after him.  One of his contributions is the Gaussian Distribution where real valued random variables tend to cluster around a single mean variable.  Does that sound like prices dancing … [Read More...]

Index vs. Passive Investing

Harold R. Evensky, in his Wealth Management: The Financial Advisor's Guide to Investing and Managing Client Assets book, makes a distinction between index and passive investing.  The distinctions can be found at this location.  Few readers are unaware of the differences between active and passive management, but the subtle definitions between index and passive management deserves some … [Read More...]

400 Level

Bullish Percent Indicators: 15 February 2013

There were few changes in the BPI percentages this week, although the defense did capture one index and one sector.  The screenshots of each are presented below. The following information is not available for publication elsewhere on the Internet. … [Read More...]

Broad Market Outlook Beginning to Show Cracks

As anticipated for a number of weeks, the broad U.S. Equities market is showing the first signs of cracking.  The following Bullish Percent Indicator tables provide the evidence. The following information is not available for publication elsewhere on the Internet. Broad Index BPIs:  All major indexes are now controlled by defensive teams as all show O's in the right-hand column when examined … [Read More...]