100 Level

Five Essential Investment Decisions

Critical Investment Decisions 1.  Save Follow "The Golden Rule of Investing."  Save as much as you can as early as you can.  If you are not saving, why are you reading this blog?  Investing ideas only follow after one has developed the discipline of saving a percentage of each paycheck. 2.  Education Educate yourself by reading several of the Top Ten Investment Books listed on this … [Read More...]

Consensus on Wall Street is Risk of Decline Rising

USA Today Money section in this morning's paper asked the question - "Buy the dip?  Or protect the profits?"  The article debates whether or not this market will move higher or drop 5% to 10%.  The consensus of a high single digit retracement tracks our Bullish Percent Index projections and that is for the market to give up some of its recent gains.  Several analysts predict softness over the next … [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...]

Bohr Portfolio Review: 22 February 2012

Shares of VWO [Emerging Markets (EM)] were purchased this week for the Bohr Portfolio bringing the EM asset class into balance.  Even so, we are over 250 shares shy of pulling EM up to the 20% target.  In the following screen shots Platinum members can see the Bohr Dashboard and performance data. The following asset allocation is designed for the long-term investor.  While the Bohr … [Read More...]

200 Level

Passive vs. Active Investment Strategy

Using Morningstar and Yahoo-Finance to compare stocks and ETF performance.* Here is an exercise that will prove informative to investors who construct portfolios using stocks. Follow these instructions. … [Read More...]

The Art and Science of Portfolio Construction

Basic investment principles require long-term portfolios exhibit the following characteristics. 1.  Equity orientation. Equity orientation includes high-expected return ETFs such as VTI, IWN, VTV, VOE, VOT, VBR, VBK, etc. 2.  Diversification over the entire world market. International exposure is possible through ETFs such as VEU, EFA, VWO, EPP, etc. This blog post is not … [Read More...]

400 Level

Maxwell Portfolio Review: Risk Reduction In Action

With the market closed for Good Friday, we can push the review for the Maxwell up a few hours.  It makes no difference as all the ETFs are still priced above their respective 195-Day Exponential Moving Averages.  VEU escaped a sale by $0.37 so it will come as no surprise if that ETF is not in a sell position when we review the Euclid next round. In the Dashboard below we see that … [Read More...]

Where Is The Market?

Without going into a lot of explanation, contemplate the following graphs.  This graph is a composite of the stocks on the New York Stock Exchange. Platinum membership is available for a mere $5.00 per month.  Learn how to reduce portfolio risk. … [Read More...]