100 Level

The Art of Mosaic Investing

Mosaic Investing:  What is it? Active and passive investing are terms well known to the investing community, but what is Mosaic Investing?  While Mosaic Investing is not part of the Wall Street lexicon, it does convey meaning to investors who primarily construct portfolios using index mutual funds or index Exchange Traded Funds (ETFs) plus a few individual stocks.  Mosaic is to … [Read More...]

Risk Management of Portfolio

Will your portfolio survive a three sigma event that is likely to happen over the next ten years?  Check out this link to see a sample analysis. … [Read More...]

300 Level

Is It Worth 50 Basis Points – Or Higher?

Approached recently about the possibility of investing in index funds that are only available through fee based advisors, I decided to take a closer look.  The question of whether to pay 50 to 100 basis points for access to specialized index funds is an honest question.  The first step was to define what risk (portfolio uncertainty) might be required as this would determine the … [Read More...]

“New Normal” Three-Year Risk Reduction Analysis

In the prior blog entry I used five years of data for the QPP analysis of the "New Normal" portfolio when the allocated percentages were based in equal risk rather than allocating assets according to capitalization.  In this QPP analysis I use three years of data instead of five. This blog entry is not for publication elsewhere on the Internet. … [Read More...]

200 Level

Euclid Portfolio Review: Major Asset Allocation Adjustment

What does the Strategic Asset Allocation plan look like for a portfolio built around the "New Portfolio" model?  Using the Euclid as a model, we move from having nearly all the asset classes in balance to a sea of blood with the new allocations.  Check out the Euclid Dashboard shown below. … [Read More...]

ITA Portfolio Performance: 26 May 2012

While the individual portfolios increased in value this week, nearly all lost ground with respect to both the ITA Index and VTSMX benchmarks.  That is to be expected any time the market moves up considering that many of the portfolios are out of a number of asset classes and in cash or other income generating instruments.  Portfolios such as the Curie, Newton, Schrodinger, Einstein and … [Read More...]

400 Level

ITARR Using Current Data

Platinum readers following the ITA Risk Reduction (ITARR) model will note that all key ETFs are currently flying beneath their 195-Day Exponential Moving Averages.  At the end of the month we will take a look at all positions to see what moves to make in early December.  Don't be surprised to see a rebound tomorrow. If new readers are unfamiliar with the ITARR model, search the term … [Read More...]

Bullish Percent Indicator Update

In the Bullish Percent Indicator data table below, I want to draw your attention to several features.  1) Look at the latest data in the 06/01/12 row.  The left-hand number, 46.62, is the most important as that indicates the percent of stocks in the NYSE that are generating a bullish PnF graph. [Next time I will include the headers or titles in the screen shot.]  That percent … [Read More...]