100 Level

Exactly What Is The Momentum-Optimization Model?

Exactly what is the Momentum-Optimization Model (MOM) and how does it work?  The very first step in this process is to define what securities one wishes to use to build the portfolio.  This is easier managed and accomplished with index investments vs. selecting individual stocks.  For example, one is likely to choose VTI to always have some role in the portfolio whereas a well-known stock such as … [Read More...]

A Third Investing Path: Mosaic Investing

We hear and read about active and passive investing, and which style is most beneficial to the majority of investors.  There is a third path which is a combination of both the active and passive styles and I call it Mosaic Investing.  Mosaic Investing, as I use the term, is where one constructs the majority of the portfolio around index vehicles such as non-managed index ETFs, and then adds a few … [Read More...]

300 Level

Asset Allocation Changes

Waterford, Virginia With the broad market hovering as high as it is, now is a good time to take a careful look at the asset allocation plan for each portfolio.  If one needs to rebalance and sell over allocated asset classes, now is the time to make those adjustments.  I am looking at a number of portfolios, particularly when it comes to the equity/bond ratio.  In taxable accounts, … [Read More...]

QPP Analysis of “Top 17 Stocks”

Selecting the recommended stocks from the 40 securities listed in a prior blog, here is the Quantext Portfolio Planner (QPP) analysis of those 17 stocks.  Included is the Correlation Matrix graph and for good measure, I threw in the "Delta Factor" projections.  Since there were fewer stocks than in the original analysis I was able to show all the correlations. QPP Analysis:  As in the prior QPP … [Read More...]

200 Level

Portfolio Performance: 1 April 2011

Below is the Performance - Uncertainty data table for April 1, 2011.  In the process of updating the table, I focus on the changes in Sortino Ratio (SR) and Retirement Ratio (RR) as those values combine both return and uncertainty for each portfolio.  Since the last update, four (4) portfolios showed gains in the Return/Uncertainty ratio while three (3) showed losses and three (3) came … [Read More...]

Asset Allocation: A Low-Medium Risk Portfolio

In this current series of five portfolios, the following QPP analysis shows the second most conservative portfolio.  While we gain a little in projected portfolio return, we also see an uptick in the projected uncertainty.  The Diversification Metric also stays well below our goal of 40%.  While these QPP examinations are only projections, they do provide us with some probability … [Read More...]

400 Level

“Delta Factor” for Bond ETFs

A week to ten days ago I promised to run a "Delta Factor" analysis on the bond ETFs we use in a variety of portfolios.  One Platinum member requested CSJ be included in the analysis and here it is in the following screen shot. … [Read More...]

Where Are The Best International Opportunities?

If you are not satisfied with broad international ETFs such as VEU, VEA, VWO, and EFA, but want to search for individual countries, the following Delta Factor analysis and projections might be of interest.  In the following QPP analysis I show the Delta Factor projections for a broad range of countries followed by several other ways to look at some of the specific countries that are showing … [Read More...]