100 Level

Why Do Amateurs Continue To Try When Professionals Fail?

Seeking Alpha is the scene of a debate around the viability of the Efficient Market Hypothesis (EMH).  Before going very far into this topic, please keep in mind that we don't want this information to be scattered very far in the world of investing as we want active manager to keep throwing those $20 dollar bills on the ground so we as passive managers can come along a scoop them up for … [Read More...]

Stock Screening Service Coming

While this blog is oriented toward using index ETFs to construct portfolios, some readers spice up their portfolios by adding a few stocks.  These are known as Mosaic investors.  To cater to Mosaic investors, I am adding a stock screening service.  Send me your criteria and I will run a screen.  Stocks that emerge from the screen will be posted for other Platinum readers to … [Read More...]

300 Level

Momentum-Optimization Portfolio Construction

Constructing a portfolio through the use of a Momentum-Optimization Model (MOM) is infinitely easier than it was just a few years ago.  For one, we have many commission free ETFs to use so that trading costs do not consume all returns.  Computing power is the big difference as readers will see in a few moments.  If you Bing or Google "ETF Momentum Investing" you will find many references to … [Read More...]

Sample Portfolio For The Mosaic Investor

Investors who use a few individual stock will be interested in the following portfolio suggested by a reader.  By Mosaic, I mean an investor who uses an array of index ETFs (or index funds) and then sprinkles in some individual stocks. QPP Analysis of Suggested Portfolio:  In this analysis the S&P 500 is assumed to grow at an annual rate of 7.0% so this portfolio is projected to outperform … [Read More...]

200 Level

Positioning the Maxwell, Euclid, and Madison

In preparation to launch the ITA Risk Reduction model for the Maxwell, Euclid, Madison, and possibly one or two more portfolios, the basic asset allocation is laid out below.  SDS is shown only as a possibility in unusual circumstances.  The percentages as shown apply only when the ETF price lies above its 195-Day Exponential Moving Average (EMA).  Such is not the case right now as … [Read More...]

Portfolio Performance: 21 January 2012

This was a good week for most of the portfolios.  Not only did we see absolute gains, but relative improvement as well.  The majority of the portfolios gained a little ground on either the ITA Index, the VTSMX benchmark, or one of the three uncertainty measurements. The exaggerated figures related to Gauss are to be expected as this is a young portfolio.  Annualized calculations … [Read More...]

400 Level

Bullish Percent Indicator Weekly Update: 22 September 2012

In the following tables we have the Bullish Percent Indicators for seven indexes and ten sectors.  As mentioned in a recent comment, I added the Dow Jones Transportation BPI to the list of indexes.  DJTA has one of the lower percentages or fewer companies with bullish PnF graphs.  Look over both tables and I think most Platinum readers will conclude with me that these markets are … [Read More...]

Bullish Percent Indicators: Mixed Reactions To Financial Cliff

While there were no major offensive-defensive shifts in the major indexes, there were a few changes within sectors of the market. The following data tables provide detailed information on the changes. Bullish Percent Indicators for Indexes: Both the NYSE and DJIA indexes improved numerically this past week although neither index showed sufficient strength to move from a defensive position to an … [Read More...]