100 Level

Rebalancing Portfolio: Blending Dashboard and Optimizer

Now that an optimizing tool is available, how does one rebalance a portfolio by combining the output of an optimizer with the Dashboard guidelines?  The larger topic is one of asset allocation so I will start with the following Dashboard that defines an asset allocation plan. Dashboard:  Assume the following Dashboard lays out the Strategic Asset Allocation plan for a portfolio.  Only pay … [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...]

300 Level

Nine Stocks That Pass The Valuation Stock Screen

Within the American Association of Individual Investors (AAII) "Stock Investor Pro" software program are several valuation measurements.  These valuations include the following. Earnings per share Dividend Cashflow Free Cashflow Sales In the screen shown below, I am looking for companies that are currently priced below each of the five valuation screens.  I … [Read More...]

X-Ray of New Normal Portfolio

From time to time I will run a QPP analysis on a current version of the "New Normal" portfolio, a defensive set of stocks and ETFs.  Below are the screen shots showing the X-Ray analysis for the NN portfolio as determined by Morningstar.  Any comments on this analysis and does this x-ray analysis show this to be a defensive portfolio?  If so, in what ways? … [Read More...]

200 Level

Simple Global Portfolio as IRA Risk Reduction Core

ITA Risk Reduction Portfolio Over the last few weeks, I've discussed a risk reducing portfolio consisting of seven ETFs.  They are: VTI, IWN, VEU, VWO, VNQ, RWX, and IGE.  While this combination provides global exposure, there are inherent risks.  While the projected return is a robust 9.7%, we take on a high degree of uncertainty to reach this return.  The projected … [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...]

400 Level

Return and Risk Relationship

What is the relationship between return of a portfolio and the associated risk involved? Quoting from an “Active vs. Passive” paper I found in my files. “High potential returns always involve high potential risks. There are no low-risk/high-return investments. Investment risk comes in many forms but, to most investors, risk means the potential for losing investment capital and … [Read More...]

Portfolio Risk: Advantages of Semivariance

Semivariance: Preferred Risk Measurement Portfolio risk is given lip service, but rare is the investor who takes pains to actually measure the risks involved in the makeup of their portfolio. It is common to hear an investor indicate they have a well-diversified portfolio if it is made up of more than 15 to 20 stocks. The correlation between the investments might be a mystery, yet the claim is … [Read More...]