100 Level

QPP Challenge

For readers using the QPP software, here is a challenge.  Come up with a portfolio that meets the following standards. Include between 8 and 20 ETFs. The projected return will exceed the projections of the S&P 500 by one percentage point.  As an example, I set my S&P assumption to be 7.0% so the projected return will come in above 8.0% The projected risk or uncertainty is … [Read More...]

Why Use Index Funds?

The Power of Index Investing Why are 80% to 85% of all investors wrong?  Could it be the power of advertising and greed?  What do I mean when I say a high percentage of investors have it all wrong?  Simple!  The majority of investors build their portfolios by selecting individual stocks.  While we do not find fault with investors who want to add a few highly selected … [Read More...]

300 Level

TLH Spreadsheet Change

I made a small change in the TLH spreadsheet by switching columns L and M.  I've attempted, without success, to make a short video explaining the reason for the move.* When looking up dividend/yield information on Yahoo-Finance, they only give yield information for ETFs.  Therefore, I want to enter that information into column L and have Excel™ make the calculations for the … [Read More...]

Einstein Portfolio Update: 12 June 2013

Here is the latest information on the Einstein Portfolio.  This review includes the Dashboard, Performance, Efficient Frontier, ETF Rankings, and Buy-Hold-Sell Recommendations.  We begin with the Dashboard. Dashboard:  Precious Metals (GLD) and Commodities (DBC) continue to be priced well below their 195-Day Exponential Moving Averages (EMA) so we are staying on the sidelines with those two … [Read More...]

200 Level

Balanced Portfolio: Number 3

Portfolio number 3 in this series is what I call a Balanced Portfolio.  Bonds are lowered to 40% of the portfolio so this is still quite a conservative mix of assets.  This portfolio comes close to fitting the 60/40 equity to bond ratio, sort of a standard when it comes to building a middle of the road portfolio.  Note the changes that are taking place in the five key metrics.  … [Read More...]

Retirement: Are You Ready Financially?

What is all this investing discussion about other than to prepare for the financial aspects of retirement.  I am already in that stage of life, but this blog is written for those a long way from retirement as well as for retirees.  If I had my druthers, I would prefer to capture very young investors to this blog as time is crucial to successful retirement planning. When I gave … [Read More...]

400 Level

Point & Figure Graph Indicators

Point & Figure graphs are useful for identifying ETFs that may be a potential buy.  P & F charts are one of the metrics I use as a clue for potential buying (holding or selling) opportunities.  Below I show examples that illustrate the four basic conditions.  I am looking at the slope of the line, positive or negative, and whether or not there has been positive or negative … [Read More...]

Some Answers to Correlation Questions

In a recent post I showed examples of Correlation Matrices generated by different softwares from (seemingly) the same data. I have now found explanations for the differences in all but the data generated by the QPP software. In the original post I used raw price data to generate the Excel correlation matrix – as such, that matrix was correct. However, in the analysis of stock price data, the … [Read More...]