100 Level

Establishing An Investment Philosophy

Before buying a stock, mutual fund, ETF, or any other investment, it is best to think through what you want your portfolio to accomplish.  For most savers, the portfolio is expect to grow in size and eventually throw off sufficient income to see one through their retirement years and perhaps pass something on to children and a favorite charity.  Exactly what is my investment … [Read More...]

CNBC: The Financial “Weather” Channel

If you are looking for financial entertainment instead of sound investment advice, CNBC is for you. If you seek solid financial information that will serve you well over many years, spend time reading William Bernstein, John Bogle, Rick Ferri, Larry Swedroe, David Swensen, Mark Hebner, Charles Ellis, Taylor Larimore, Mel Lindauer, Burton Malkiel, and Roger Gibson. Turn off the TV, save time, … [Read More...]

300 Level

Feynman Portfolio Study: Part 5

In Part 5 of the Feynman Portfolio Study I describe a method of "ranking" the assets in the Feynman Portfolio Asset List based on "Momentum". This results in a measure of  the "Relative Strength" of each asset. Platinum members and regular readers of this Blog will be familiar with the spreadsheets used in the analysis since Lowell uses them regularly. Top "ranked" assets are then chosen for … [Read More...]

Piotroski Stock Update

This morning I updated my Stock Investor Pro database from the American Association of Individual Investors (AAII) source and ran a check to see how many stocks passed the Piotroski High F-Score screen.  Only five out of nearly 10,000 stocks made the list and those special stocks are listed below for Platinum members. … [Read More...]

200 Level

Index Funds Advisors Asset Class Comparison: Examining The Big Return vs. Risk Picture

Index Funds Advisors Asset Class Comparison:  As promised yesterday, the third video talk from Index Funds Advisors is located at this URL.  Mark Hebner provides the large picture of the relationship between return and risk.  If you missed the first two presentations, go back to this blog entry to pick them up.  While you are on the IFA web site, I recommend each reader take … [Read More...]

Searching for the Strategic Asset Allocation Holy Grail

Establishing a strategic asset allocation (SAA) plan for a portfolio requires at least two major decisions.  1) What asset classes should be included in the portfolio.  2) What percentage of the total portfolio is allocated to each asset class.  Decision number two is the more difficult of the two.  Where do I come up with the various asset allocation plans found in the various … [Read More...]

400 Level

QPP Projections for “Swensen Six” On March 15 of 2009

What was the Quantext Portfolio Planner (QPP) software projecting for the "Swensen Six" Portfolio back on March 15th of 2009?  I use the Swensen as an example portfolio since it is simple and it includes most of the basic asset classes we use with ITA portfolios.  In addition, March 15th was about the market bottom, so it is of interest to see what the projections were when we were all biting our … [Read More...]

Bullish Percent Indexes: 16 August 2013

As one might expect, general decline showed up in both the Bullish Percent Indexes and sector BPI data.  There was one major exception among the sectors and I will get to that later.  We first examine the major indexes and then sectors of the market. … [Read More...]