100 Level

The Search For The Perfect Portfolio

Yesterday I spent a considerable amount of time trying to come up with a portfolio where the projected return exceeds 8% when assuming the S&P 500 would grow at 7% per year.  Additional goals were to bring the projected risk to something under 13% and reach the 40% level for Diversification Metric.  Below is the screen shot for one of my efforts. Platinum membership available for … [Read More...]

Disadvantages of Passive (Index) Investing: Are There Any?

The arguments in favor of passive investing are far too compelling to completely ignore.  If there are any disadvantages, what are they? 1.  At one time the availability of passive or index funds were limited, particularly in certain asset classes.  Availability of index funds is no longer a problem as ITA readers know.  We can find an index ETF to fill every asset … [Read More...]

300 Level

Preparing for the Kenilworth Review

Tomorrow, the Kenilworth Portfolio is up for review and the following data indicates the portfolio can use some tweaking.  We first examine the Efficient Frontier graph and then check what options might be available to increase the Return/Risk ratio. Efficient Frontier:  Looking at the Efficient Frontier graph the desire is to push the current portfolio (diamond dot) up the EF graph toward the … [Read More...]

Kepler Portfolio Update: 27 December 2011

Twenty-five shares of VWO were added to the Kepler Portfolio last week.  This addition brought the Emerging Market asset class within the 25% target limit, but still left the portfolio 118 shares below the targeted percentage.  Platinum members will note the Dashboard or Strategic Asset Allocation (SAA) plan below.  If I make changes over the next few weeks it will result in … [Read More...]

200 Level

Asset Classes: How Many Should You Own?

With much recent attention given to answering the money managers most perplexing question, what percent of the portfolio should be invested in each asset class, the whole idea of how many asset classes to include in a portfolio has been neglected.  William Bernstein answers the question this way.  "You might as well ask the meaning of life.  About all one can say is, more than three."  The major … [Read More...]

Passive Investors

Passive Investing or Passive Management: Passive investing is the antithesis of active investing. Investors who subscribe to a passive style of investing do not think they can beat the market. Passive investors are strong advocates of the efficient market theory and that is – all information is reflected in the price of the product. While passive managers conclude they cannot beat the market … [Read More...]

400 Level

Feynman Portfolio Study – Part 1

This first Part of the Study identifies the 10 Asset Groups and 18 individual EFTs that comprise the Feynman Portfolio and looks at the general market behavior, as defined by the Vanguard Total Stock Market Fund (VTSMX), over the 6 year period from 06/29/2007 to 06/30/2003.  The VTSMX will be used as the reference, or benchmark, for comparison of portfolio performance through each future phase of … [Read More...]

Bullish Percent Indicators for 11 January 2013

Overall, most of the indexes and individual sectors showed strength this week when measured by the Bullish Percent Indicators.  The following tables speak for themselves.  Offense definitely dominates both the broad indexes and the specific sectors of the market. … [Read More...]