100 Level

Buy and Sell Guidelines: A General Overview

Armed with analysis tools such as the Quantext Portfolio Planner (QPP), TLH Spreadsheet, Hoadley Optimizer and expanded worksheets, it is possible to outline some basic guidelines for buying, holding and selling ETFs.  As always, individual judgments are required and I'll attempt to explain those when transactions occur.  As always, we make investment decisions in the context of broad market … [Read More...]

Dollar Cost Average, Value Average, or Jump In Now

"Once desired allocation is determined, what is best way to execute the plan:  Dollar Cost Average (DCA)  or Value Average (VA) over a period of time or all at once?"  This was question 17 on the list from this blog entry.  I don't have an easy answer to this question.  Maybe I should if this site provides any clues.  Considering that Rukeyser's … [Read More...]

300 Level

Holy Grail Portfolio Revised

Revising the "Holy Grail" portfolio is an extension of the blog entry posted earlier today.  The following QPP analysis is somewhat constrained by two new corporate bond ETFs (VCIT and VCLT) that have not been in existence three years.  Nevertheless, Platinum members will find this portfolio of interest.  The broad guidelines for putting this portfolio together is as … [Read More...]

Can Your Portfolio Survive The Next Bear Market?

The following SORDEX analysis is a variation of the material presented in the "Will I Run Out of Money?" blog.  Once more, I will use the 12-ETF Portfolio as the retirement portfolio.  As review, SORDEX is an acronym for Sequence-of-Returns Downside Exposure. Translated for T. C. PITS, it is a way to run several Monte Carlo calculations and see if you are likely to run out of … [Read More...]

200 Level

Portfolio Performance Data: 5 August 2011

What did the recent negative market do to portfolio performance numbers?  We know the absolute IRR sank this last week.  What is less clear is how well did the portfolios perform with respect to the VTSMX and/or ITA Index?  Also, how well did the Sortino and Retirement ratios hold up?  The data table below provides some clues. In general the portfolios did quite well.  … [Read More...]

Portfolio Performance: 13 April 2012

Although the individual portfolios declined in value since the last update, all gained ground when compared to the IRR VTSMX benchmark.  In most cases, the difference between the Internal Rate of Return (IRR) of the portfolio and the IRR for the ITA Index remained the same.  In a number of portfolios, the Sortino and Retirement Ratios dropped a fraction of a point. Click on title to … [Read More...]

400 Level

Rule #6 of Investing

Diversify is Rule #6. Diversity reduces adversity. Simply put, spread your money out over several asset classes. For small accounts, one should at the very least consider stocks (ETF equity), bonds, and an international fund. For larger accounts, broaden into REITs, commodities, and emerging markets using ETFs or index funds. For the very largest of portfolios, break the asset classes into value, … [Read More...]

Possible Enhancement of ITA Risk Reduction Model

Is it possible to improve on the basic ITA Risk Reduction model?  Of course it is, but the question that immediately comes to the fore is how complicated does one want to get when it comes to reducing risk.  To review the original ITARR model, click on this link.  Once readers have the basic ITARR model in mind, take a look at the StockCharts graph for the VNQ ETF as shown below. … [Read More...]