100 Level

Active Managers: How Well Do They Do?

For a little excitement I Googled the phrase, "Active Managers Outperform the Market." Here are a few of the top sites I uncovered with this search. 1. Active Managers' Market-Beatings Claims Debunked. Give the irritating ad time to clear. 2) Active Managers Didn't Outperform in This Bear Market. 3) Active Managers Take a Beating in 2010. 4) Can Active Investment Managers … [Read More...]

AAII Journal: November Issue

As a lifetime member of the American Association of Individual Investors, I receive their journal each month. The November issue was of particular interest as it included 20 pages of the best financial web sites on the Internet. In addition to all those investment links this issue carried their ETF portfolio of which I analyze in a post tomorrow. There is also an article, "Is the Stock … [Read More...]

300 Level

ITA Index: What Is It?

Calculating the ITA Index This morning I was searching through ITA Wealth Management to find information on the customized benchmark, ITA Index, and realized how little is available for the interested investor.  Lack of information spurred me to write a bit more about it, why it is useful, and some of the potential flaws related to its accuracy. Motivation to come up with a customized … [Read More...]

A Very Basic Three ETF Portfolios

In response to the keep it simple blog post, here is a three ETF portfolio analysis.  The 30% allocation to bonds (BND) pulls down the projected return to 6.2%.  Allocating that percentage to bonds also holds down the projected volatility to 12.8%.  Note that this simple portfolio outperformed the S&P 500 over the past five years, and did it with a lower standard deviation. With only three … [Read More...]

200 Level

Portfolio Performance: 16 September 2011

After a strong week of market gains, much of the rise was domestic as the international markets, commodities, etc. were a drag on our diversified portfolios.  A few portfolios showed gains in the Retirement Ratio, but the relative performance was lacking when measured against the VTSMX benchmark.  Holding SDS and cash had negative effects on both the Curie and Newton portfolios. To see … [Read More...]

Portfolio Performance Update

This week ended on a strong note with the broad market VTI up over 2% on the day.  However, that move was insufficient to pull the Maxwell and Euclid portfolios into positive territory. Portfolios available to Platinum members continue to do well when measured against the VTSMX benchmark. Only the Kenilworth is lagging and those numbers are exaggerated due to the short period this … [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...]

Risk Avoidance the Mebane T. Faber Way

Managing risk is a significant component of portfolio management.  We monitor risk through the Sortino and Retirement Ratios within the TLH spreadsheet, but we do not use the TLH as a technical analysis tool.  It is not designed to perform those functions.  This morning I pulled Matt Willson's article off Seeking Alpha.  Within the article is a reference to Mebane T. … [Read More...]