100 Level

Harold Evensky’s Definition of Active and Passive Portfolio Management

Debating which investing style, passive or active, is the superior method is unlikely to end soon. The research is too conflicting and exceptions still exist. The difference of opinion has a long and acrimonious history – and it continues to this day. Before we enter the debate and provide some opinions, it is important to define what is meant by passive and active. A third investing style, the … [Read More...]

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...]

300 Level

QPP Analysis of Current Schrodinger Asset Allocation: Part 2

Using the percentages allocated to the current holdings in the Schrodinger Portfolio, we have the following Quantext Portfolio Planner (QPP) analysis.  The current asset allocation plan both meets and misses our goals when it comes to setting up a portfolio.  As usual, the S&P 500 is assumed to grow at 7.0% annually.  This assumption is critical as it has a direct bearing on the projected … [Read More...]

Kenilworth Portfolio Update: 24 October 2012

The one change I made since posting the following screen shots was to sell shares of DBC, the commodities holding.  The current price of DBC is below its 195-Day EMA and since this is one of the ITA Risk Reduction (ITARR) model portfolios, a sell was necessary.  I held 25 shares of DBC and I sold 20 shares.  The remaining 5 shares were left in the portfolio so I will have an ongoing calculation … [Read More...]

200 Level

Portfolio Performance: 22 January 2011

  While is was not a great week for portfolio returns, most of the updated portfolios showed gains in both the Sortino and Retirement Ratios.  Of the seven portfolios available to Platinum readers, five have positive SR and RR values, not a trivial accomplishment.  The Kenilworth is a very young portfolio so a few dollars difference away from the benchmark causes major swings in … [Read More...]

Portfolio Performance: 16 December 2011

This is the first showing of the new truncated performance data table.  While the portfolios took a hit as the market declined over the last several weeks, this latest update showed relative improvement when portfolios are measured against the ITA Index, a custom benchmark, and the VTSMX benchmark.  Portfolios reveling the greatest gains were: Curie, Kenilworth, Euclid, and … [Read More...]

400 Level

Bullish Percent Indicators For Major Markets

Below is the current data for the Bullish Percent Indicators.  The big changes this week showed up in the NASDAQ 100 and S&P 500 as both dropped sufficiently to hand the ball over to the defense.  In another post I will show the sector breakdown, but I can tell readers that energy is going through the roof.  The hot weather on the east coast is moving a lot of money into the … [Read More...]

Reference Portfolio Analyzed

Using an array of ETFs, primarily commission free with TDAmeritrade, I ran a Momentum-Optimization Model (MOM) analysis for the purpose of showing new and experienced investors how the MOM can be used  to manage a portfolio.  Not everyone will be interested in this model as it does require more monitoring than the buy and hold approach. Consider MOM to be one level up in sophistication as … [Read More...]