100 Level

Asset Allocation or Risk Parity

A Platinum member sent the following summary of an article and asked me to comment.  Note that my response is framed in the context of constructing portfolios through the use of a strategic asset allocation plan.  The Dashboard of the Curie Portfolio, posted this morning, is an example.  The second part is tied to future performance forecasts using software, Quantext Portfolio Planner (QPP).  Here … [Read More...]

High Fees Are A Problem

Three days ago I posted a link to The Portfolioist to draw your attention to how fees cut into your retirement account.  The American Association of Individual Investors (AAII) is also featuring this study.  Here is the AAII announcement that was sent out to subscribers on June 7th.       Dear Member, If you lost $155,000 to fees, how angry would you be? … [Read More...]

300 Level

Bohr Portfolio Review: 18 July 2012

Time to update the Bohr Portfolio, one of the six portfolios that are not part of the ITA Risk Reduction model test.  Nevertheless, I am using some of the exponential moving average data in an attempt to reduce risk to this portfolio.  This week I picked up shares of VO and VB, but not enough to bring these blend asset classes back into balance.  I'm still not completely … [Read More...]

ITA Experimental Portfolio

The following portfolio is in the experimental stages of investigation so approach it with caution.  I have not checked out costs and expenses for every ETF included in this QPP analysis.  The portfolio includes seven unfamiliar stocks.  I will explain where they come from and the screens used to uncover them. Platinum membership is available for $5.00 per month.  Join ITA and … [Read More...]

200 Level

Report on “New Normal” Portfolio

The following report on the "New Normal" portfolio comes from Bob Warasila, the creator of this set of assets. The New Normal test portfolio is now at the 2 year mark and is ahead of the benchmark VTSMX.  This portfolio is based on some comments by Pimco’s co-chairs and Geoff Considine (What the New Normal Means for Asset Allocation, August 8, 2009) of QPP back in the summer … [Read More...]

Rethinking Asset Allocation

Keeping David Swensen's Strategic Asset Allocation model in mind, it is possible to use all seventeen asset classes available in the TLH Spreadsheet to fulfill his recommendations.  Platinum members will see how this is accomplished when the Gauss Portfolio is reviewed tomorrow.  Instead of using six ETFs as I showed in an earlier post, we will use many more, but still stick with … [Read More...]

400 Level

StockCharts for Basic Six

Readers who are following the ITA Risk Reduction model will note that only two of the "Basic Six" equity ETFs are currently above their 195-Day EMA.  Despite the market decline yesterday, VTI and VNQ held above the critical EMA.  IWN, VEU, VWO, and RWX either dropped below or stayed below their 195-Day EMA. To check your own holdings, go to this link for information. … [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...]