100 Level

Must Read Article

Platinum members will definitely want to read the referenced article that is predicting a collapse of the bond market.  For several weeks I've been cool on bond ETFs even though several portfolios continue to hold small positions.  We can all see the headlight of the coming train, but our resolution is insufficient to tell us how soon the train will be upon us.  Like the author, … [Read More...]

Where To Begin If You Have Never Managed A Portfolio

If someone asked you what to do with an inheritance or 401(k) sum of money, what advice would you give them?  Here are some basic ideas for a novice investor. Assume the money is in your checking account and available to be invested. Open up a broker account with a discount broker.  For example, go to a "bricks and mortar" location if possible and fill out the forms.  A good idea is to print … [Read More...]

300 Level

Maxwell Portfolio Update

As long-time Platinum members know, the Maxwell is one of the five original portfolios to participate in the ITA Risk Reduction (ITARR) model project.  More recently I expanded the ITARR model into the Momentum-Optimization Model (MOM) and these moves to reduce risk are beginning to show positive results.  Over the last month the Maxwell's Internal Rate of Return (IRR) picked up 150 basis points … [Read More...]

Portfolio Performance For Week of April 20th

The good news this week is that ten of the eleven portfolios gained ground on the VTSMX benchmark.  Only the Newton did not pull ahead of the U.S. Equities index, but remained even.  What was a little strange is the fact that eight of the eleven portfolios lost a fraction of a percent to the ITA Index, our customized benchmark.  By pulling ahead of the VTSMX I assumed the portfolios … [Read More...]

200 Level

Stop Drinking Your Retirement

Practicing Self-Discipline This week I was in a meeting and to no surprise I witnessed at least one participant drinking bottled water. I kept quiet as it made no sense to offend anyone, but it did not stop me thinking - suppose one drank from the tap and saved the difference? What would that saving amount to over a lifetime? A quick calculation can be found at this bottle calculator site. It is … [Read More...]

Index Funds Advisors Asset Class Comparison: Examining The Big Return vs. Risk Picture

Index Funds Advisors Asset Class Comparison:  As promised yesterday, the third video talk from Index Funds Advisors is located at this URL.  Mark Hebner provides the large picture of the relationship between return and risk.  If you missed the first two presentations, go back to this blog entry to pick them up.  While you are on the IFA web site, I recommend each reader take … [Read More...]

400 Level

ITA RR Style Portfolio

Planning a Risk Reduction Portfolio Special note to Platinum members: I've been working on an asset allocation plan that I think would work for an ITA Risk Reduction (ITARR) style portfolio.  Below is the screen shot of the QPP analysis of such a portfolio.  In the current analysis, only seven of the 10 ETFs are used.  SDS would only come into play under extreme conditions. … [Read More...]

Bullish Percent Indicators Continue To Show Market Weakness

Last week the Bullish Percent Indicators (BPI) began to show cracks.  This week those cracks opened up further, but not to crevasse proportions.  There was one exception within sectors as you will see below. This material is not available for publication elsewhere on the Internet. … [Read More...]