100 Level

Eschew Active Management

    Richard Ferri writes in his book, "The Power of Passive Investing," - "Efficient investing is different from efficient markets."  How true.  Following recommendations of Ferri, Bernstein, Swedroe, and other index advocates, we seek to advise investors to set up and manage well-diversified portfolios in order to increase the probability of … [Read More...]

Stay Attentive to Coming Posts

Weekend Activities 1) Look for the "Creme List" of stocks to be posted soon after the market closes today. 2) The business month closes today and if all goes well, TDAmeritrade will have their monthly statements available before the market opens on Monday. This permits TLH spreadsheet users the opportunity to balance the portfolio data with the broker statement. I don't know if … [Read More...]

300 Level

Kepler Portfolio Update: 19 September 2011

While this is an intraday update, the asset allocation relationships shown in the following Dashboard will not change all that much.  Shares of VWO were added to bring the emerging markets closer to target.  We still need another 105 shares of VWO to push this asset class back to target. … [Read More...]

Second Run of Suggested Portfolio

I mistakenly dropped two securities from a recently submitted portfolio.  Here is an update of that analysis.  Once more, I approximated the percentage of shares held in the portfolio. Efficient Frontier:  The current portfolio lies quite close to the optimized portfolio.  This suggests few changes are needed.  Nevertheless, recommendations are coming in the third screenshot. Security … [Read More...]

200 Level

Twelve ETF Portfolio

When designing a portfolio several goals need to be considered.  Here is a blueprint for portfolio construction. Build the portfolio using non=managed ETFs and index funds.  Don't over complicate by using too many ETFs. Keep costs low by using inexpensive ETFs.  For most investments we use Vanguard ETFs. When running a QPP analysis, set these standards. Projected … [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...]

400 Level

Current Condition of the ITA Risk Reduction Model

In contrast to a passive or index approach to investing, what is the state of the critical ETFs used in the portfolios where we are employing the ITA Risk Reduction (ITARR) model?  Tactical Asset Allocation is applied to ETFs in the Maxwell, Euclid, Madison, Kenilworth, and Gauss portfolios so as to avoid "Black Swan" events as we experienced in 2002 and again in 2008.  While … [Read More...]

Is It Time To Buy The Commodity, DBC?

The quick answer is, NO.  Why is it too early to move back into the commodity ETF?  Let me count the ways.  First, start with the PnF graph, shown in the first slide.  Today's big drop is shown with a 6 showing up in the right-hand column.  That 6 indicates DBC had another one box drop in June which means we are adding another O in this column.  Supply for DBC … [Read More...]