100 Level

Multi-Asset Class Investing

Multi-asset class investing or multiple asset classes is a title that comes right out of Richard A. Ferri’s excellent book, “All About Asset Allocation.” While my reference is to Ferri's first edition, I would pay the few extra dollars and purchase the second edition.  Nudged by a fellow asset allocation investor, I went back and reread Chapter 4 of Ferri’s book. … [Read More...]

Yield Trap

Beware of Yield on Purchase Price On occasion I read about someone receiving a high yield from a stock, only the value is falsely calculated. Instead of using the current price, the investor insists on using the purchase price for the yield calculation. Some years ago, Lowell Miller published a book based on this misguided calculation. Let me explain what yield based on original or purchase price … [Read More...]

300 Level

US Dominated Porfolio: Analysis Part I

The following portfolio was submitted by a Platinum member for analysis.  As you will see, this is a U.S. Equities dominated portfolio.  As a result, you will note in the Historical Section how well it performed with respect to the S&P 500 over the past five year.  Only 10% is invested in bonds and this should serve the portfolio well over the next five years.  Here is the QPP analysis and in … [Read More...]

Einstein Portfolio Update: 2 January 2012

The following Dashboard shows the asset allocation plan for the Einstein Portfolio.  This worksheet and the following performance slide include all dividends from 2011.  With the available cash, I expect to put all the under-target asset classes in balance within a few weeks.  I have several limit orders in place for the under-target asset classes. … [Read More...]

200 Level

Growth: Portfolio #5

Moving one step closer to increasing the projected return, this post is about the Growth Portfolio, number 5 out of 6 in this series.  Bond and income is reduced to 16% in this portfolio so it is definitely tilting toward the aggressive side of investing.  Two ETFs, BND and IEF are eliminated from this portfolio as we will concentrate our income holdings in TIP and TLT. Platinum … [Read More...]

Sample Portfolio For Thirty (30) Year Old Investor

The following portfolio was passed on to me by a Platinum member as an example of a Strategic Asset Allocation plan for a thirty year-old investor.  Nine ETFs are used in this portfolio and many of the investment securities are familiar to ITA readers.  In fact, all nine Exchange Traded Funds can be found in one or more portfolios with exception of RWO.  RWO is a global real estate … [Read More...]

400 Level

Risk Reduction With Maxwell Portfolio

Bringing Maxwell on to New Schedule Using the new examination schedule, the Maxwell Portfolio will undergo a look at market close to see if any changes need to be made in the ETFs that make up this portfolio.  Since I went through this process at the end of December I don't anticipate any changes.  The purpose of this post is to bring the Maxwell into the new examination … [Read More...]

Examining Critical Risk Reduction ETFs

This is examination day for the Maxwell Portfolio and the market is in a swoon.  A few minutes ago I look at the "Critical Eight" ETFs and they are: VTI, IWN, VEU, VWO, VNQ, RWX, DBC, and PCY.  All are still priced above their 195-Day EMA, but some are getting close to crossing the EMA line.  For this reason, I will be waiting for the market to close before I make any … [Read More...]