100 Level

Why Take the Passive Path to Investing?

Let's step back a moment and examine some facts.  One of the longest bull markets of my life occurred from August of 1982 through 2007.  Some may say the bull market ended in March of 2000.  Blackstar Funds studied all common stocks that were traded on the NASDAQ, NYSE, and AMEX during the longer period (actually 1983 - 2007).  The universe of stocks numbered over 8,000 or stocks that qualified … [Read More...]

Gauss Portfolio Review: Risk Reduction Model Update

At the end of each month the Gauss Portfolio comes up for its ITARR review.  Over the past few days I had some concerns that one or more of the eight critical ETFs would be sold out of the Gauss.  Fortunately, this did not happen as the closing prices today showed each of the ETFs priced above their 195-Day Exponential Moving Averages.  We may find a different situation when the Maxwell is … [Read More...]

300 Level

Kenilworth Portfolio Update: 17 October 2011

Although the regular review for the Kenilworth is a few weeks away, purchases and sales this month are reasons for updating the portfolio today.  Readers will note some changes in the Strategic Asset Allocation plan.  For example, shares of VO and VB were sold out of the blend asset classes and those assets were shifted to VTI, the large-cap blend ETF.  VO and VB are highly … [Read More...]

Creating The Customized ITA Index Benchmark For The Kenilworth And Other Portfolios

Constructing a customized benchmark to use as a performance standard is nearly as important as putting together a Strategic Asset Allocation (SAA) plan for a portfolio.  If one does not benchmark a portfolio how is it possible to know how well the portfolio is being managed?  To understand what is required to come up with a good benchmark, check this reference.  I also recommend … [Read More...]

200 Level

Gauss Portfolio: Updated Dashboard Reflecting Risk Reduction Model

The Gauss Portfolio is now ready for a 30-Day nap.  With all the critical ETFs above their 195-Day Exponential Moving Averages (EMAs), all required purchases were made this morning.  The following Dashboard shows the asset classes are in balance. … [Read More...]

Optimization Correction For 12 ETF Portfolio

Here are the following assumptions I used to create the portfolio shown below.  1)  The S&P 500 is assumed to grow at 7% per year.  This percentage is adjusted by setting the Delta Return to -3.3% inside the QPP software.  2) I used five years of data running from 2/6/2008 through 2/6/2013.  3) The Solver Parameters are listed below. The following material is not available for publication … [Read More...]

400 Level

Where Is The Market?

Without going into a lot of explanation, contemplate the following graphs.  This graph is a composite of the stocks on the New York Stock Exchange. Platinum membership is available for a mere $5.00 per month.  Learn how to reduce portfolio risk. … [Read More...]

Rethinking the ITA Risk Reduction Model

In late October of 2011 the ITA Risk Reduction model was introduced.  ITARR is a modification of a timing model I used as far back as the early 1980s and more recently patterned after the Faber - Richardson model explained in detail in the Ivy Portfolio book.  ITA readers unfamiliar with the risk reduction model will find it through links or searches on this blog.  It is worth a review or an … [Read More...]