100 Level

Strategic Asset Allocation Plan – Step #3

Step #1: Begin a saving plan. This is key to all that follows.  Remember "The Golden Rule of Investing." Save as much as you can as early as you can. Step #2: Select the asset classes you wish to use to construct the portfolio. The table below suggests using either the "Big Six" or "Big Nine" U. S. equity classes plus Cash, Bonds, International (developed), … [Read More...]

Bullish Percent Indicators: 12 October 2012

Major Indexes:  The single major change this week is the move out of the overbought zone for the NYSE BPI.  That is the column that somehow was changed to 68.  That should read, NYSE.  Of less importance is the transportation average moving from defense to offense.  Nevertheless, that move is positive.   Sectors:  There were no significant changes in the 10 … [Read More...]

300 Level

Benchmarking The Portfolio

When putting together a portfolio, it is important to be able to measure the performance as well as carry out an accurate risk assessment. In order to do this, it is necessary to have some idea of how you expect the individual securities to perform. Therefore, the way to achieve this is to create a customized benchmark for your portfolio, a method commonly used by successful fund managers. … [Read More...]

Dividend Aristocrat Stocks – 8 July 2011

Below is the screen I use to create a list of "Dividend Aristocrat" stocks using data as of July 8, 2011. … [Read More...]

200 Level

How Does A Beginning Investor Use The ITARR Model?

When one has been saving and investing as long as I have, it is easy to forget many of the initial steps necessary to launch and manage a portfolio.  In this blog post, I will attempt to fill in a few gaps, and even with this effort, I will most likely miss something.  That is why I appreciate questions.  I am using the Gauss Portfolio as my model for several reasons.  1) It is … [Read More...]

Asset Allocation for Small Global Portfolios

If your portfolio is small and yet you want global diversification, this portfolio is one to consider.  This six asset class portfolio is built around asset allocation guidelines laid out by David Swensen in his book, "Unconventional Success."  Thirty percent of the portfolio is allocated to U.S. Treasury Bonds (TLT) and TIPs (TIP).  Domestic REITs are covered with the VNQ … [Read More...]

400 Level

Monitoring The Eight Critical ETFs For the ITA Risk Reduction Model

Photograph: Pinnacles National Monument - California After the market closes tomorrow, I will be examining the Gauss Portfolio to see if any of the eight critical ETFs show prices crossing from above to below their 195-Day Exponential Moving Averages.  While we may avoid activity within the Gauss, if the markets continue to behave as they have for the last week, there most certainly will be … [Read More...]

Projected Blood In The Street For Equities Using Three Years Of Delta Factor Data

If you are looking for Blood In The Street, look no further than the "Delta Factor" projections for an array of equity ETFs.  Keep in mind that the following projections are reversion-to-the-mean calculations and when one has witnessed a powerful bull market as we experienced since March of 2009, it will not come as a surprise to readers that future projections are unlike to … [Read More...]