100 Level

Avoiding Losses

How does one avoid major losses to the portfolio? Here are the two simple Faber - Richardson rules. … [Read More...]

Fundamental Principles for Constructing a Portfolio

The "science" of portfolio construction requires numerous fundamental principles.  Long-term portfolios call for an orientation toward return or growth through proper diversification.  Growth needs to be tempered so as to handle times of recession, deflation, and inflation.  As described in the Harry Browne "Permanent Portfolio" one needs to prepare for the four stages of the market; prosperity, … [Read More...]

300 Level

Twenty ETF Portfolio

Ivy 20 Portfolio Now we move to the most complex of Faber's Ivy Portfolios. This 20 ETF portfolio consists of 13 to 17 asset classes depending on how one breaks down the different ETFs. To keep all of these Ivy Portfolios simple, we invest the same percentage in each ETF. A few of the ETFs in this portfolio have not been operational for a full three years. This required the time frame to be … [Read More...]

Setting Up a New Portfolio

Whether one is a beginning or experienced investor, a respectable portfolio can be constructed using the following 27 ETFs.  These ETFs are available commission free to TDAmeritrade clients.  While there are 27 ETFs available, it is not expected all would be part of the portfolio at any one time.  Currently, only 13 ETFs are recommended with the current conditions. This material is not … [Read More...]

200 Level

Retirement Planning: Closer Than You Think

Too many young folks think retirement is so far in the future it does not merit current attention.  From experience I can tell you that retirement arrives sooner than you realize, particularly if you are not properly prepared.  Once more, check out The Golden Rule of Investing.  If I want to scare myself into saving more I reread the following William Bernstein quote. "Each dollar you do not … [Read More...]

Portfolio #5: Ages 66 – 100

Retirement Portfolio Constructing a portfolio for the retirement years requires one to focus on portfolio risk or uncertainty while not neglecting return. If the portfolio asset allocation plan is too conservative, the return will not meet lifestyle expectations. Inflation is again on the rise and this needs to be taken into consideration when putting together a retirement oriented portfolio. … [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...]

Sortino Worksheet: Review of How to Update the Sortino-Retirement Ratio Worksheet

We are in the middle of the month so those who are updating the Sortino Ratio (SR) worksheet inside the TLH Spreadsheet every two weeks will want to make the changes after the market closes today.  … [Read More...]