100 Level

The Art of Mosaic Investing

Mosaic Investing:  What is it? Active and passive investing are terms well known to the investing community, but what is Mosaic Investing?  While Mosaic Investing is not part of the Wall Street lexicon, it does convey meaning to investors who primarily construct portfolios using index mutual funds or index Exchange Traded Funds (ETFs) plus a few individual stocks.  Mosaic is to … [Read More...]

ITA Receives Special Attention

A few weeks ago, while I was relaxing in the basement, a telephone call from a well-known investment house showed up on my caller identification screen.  Assuming it was a "chum for client" call, I did not pick up.  However, my wife answered the phone and told me "ABC Investments" wanted to speak with me. I was prepared to "stiff-arm" any requests to … [Read More...]

300 Level

Portfolio Construction: The Important Decisions

William J. Bernstein, in his most recent book, “The Investor’s Manifesto” writes, “Before diving into the most important issue faced by any investor–the asset allocation decision–you will need to understand four things: save as much as you can, make sure you have enough liquid taxable assets for emergencies, diversify widely, and do so with passive or index … [Read More...]

Momentum-Optimization Model (MOM) YouTube Presentations

Platinum members using the Momentum-Optimization Model (MOM) spreadsheet will find two help sessions at this address. http://www.youtube.com/user/Physlab Look for Momentum-Optimization and Momentum-Optimization Part 2.  Keep in mind that the resolution is not the greatest when viewing material on YouTube.  At least the Camtasia recordings are not as sharp as I prefer. Lowell   … [Read More...]

200 Level

Portfolio Performance Update: 5 March 2013

Nearly two months passed since I last updated the portfolio performance data table.  I'm not trying to hide anything.  Instead, I've been working on other projects such as portfolio optimization.  Since the last review the U.S. Equities market has been on a tear.  In context my comments below need to reflect the fact that not all February dividends are recorded in the following data and none of … [Read More...]

Portfolio Construction

There are many different schools of thought when it comes to creating a portfolio, but how you proceed will depend on several different factors. Attitude to risk, targeted returns and available length of time to invest are all aspects that need to be built into any plan. Strategic asset allocation is one way of managing a portfolio that can accommodate different attitudes to risk, which in … [Read More...]

400 Level

Are There Any Buys Remaining In The Equity Market?

What opportunities remain, if any, in the equities (stocks) as this market continues at a high level?  While the follow are only projections, it appears as if we are not at a market inflection point.  Nevertheless, the probability of strong growth over the next few months does not look positive. … [Read More...]

Basic Portfolio Updated

What a difference one day makes in a down market.  Just yesterday (Aug. 15th data), SHY occupied position 11 and today only five ETFs are outperforming this reference as it moved up to position 6.  Check the ranking worksheet below. This material is not available for publication elsewhere on the Internet. … [Read More...]