100 Level

Ten Biggest Investor Mistakes – # 5

ITA Wealth Management Mistake #5:  Investors pick individual stocks to build portfolios rather than use index funds. … [Read More...]

Is It Worth 50 Basis Points – Or Higher?

Approached recently about the possibility of investing in index funds that are only available through fee based advisors, I decided to take a closer look.  The question of whether to pay 50 to 100 basis points for access to specialized index funds is an honest question.  The first step was to define what risk (portfolio uncertainty) might be required as this would determine the … [Read More...]

300 Level

Curie Portfolio Preparation

In preparation for the Curie Portfolio review we take a brief look at the current efficient frontier situation and the Buy-Hold-Sell ranking filter recommendations. Efficient Frontier:  With improved asset allocation we should be able to lift the return of the Curie about 150 basis points.  The current Curie is the diamond dot and the red dot is the optimized portfolio. … [Read More...]

Managing Finances

USA Today carried on the front page of the Money section the percentage of those who would rather manage their own money vs. pay someone to do the job.  Those who want to manage their owe finances is 59% while 41% prefer to pay for management.  Those figures surprised me as I did not think that high a percentage wanted to do the work on their own.  We are here to help that 59%. Of … [Read More...]

200 Level

Hedging the Simple Seven ETF Portfolio

In the last blog entry yesterday, I proposed a simple seven ETF portfolio that generated a Return/Uncertainty ratio of 0.57.  This is very close to our baseline of something greater than 0.60.  In the following portfolio, assume one sold off the 10% holding in VTI and shifted those assets over to the ultra-short SDS ETF.  There needs to be some reason for making the shift, but for … [Read More...]

Kenilworth Portfolio Review: 11 November 2011

Portfolio review time is here again for the Kenilworth.  As usual, we first examine the Dashboard to see which asset classes need attention and why.  Below is the worksheet extracted from the TLH Spreadsheet. … [Read More...]

400 Level

Bullish Percent Indicators Mixed

With the strong market yesterday (7/27/2012) I expected most of the Bullish Percent Indicators (BPI) would move up in value and definitely show X's in the right-hand column of the Point and Figure Graphs.  Of all the BPI graphs, the NYSE PnF graph is the most important.  Even though the value dropped, it is still as high as it was back in mid-May. Right now I have the Factor Scale … [Read More...]

Expecting Market Volatility and What To Do About It

If you need additional evidence that we are in a season of volatile markets, check out this Portfolioist article.  Recognizing that market ups and downs are not about to leave us very soon, what are some options available to investors?  How can we temper daily market moves of 2% or more?  Risk reduction is becoming more and more important. A few days ago, I had reason to pull … [Read More...]