100 Level

Bullish Percent Indicators Take Hit

As projected for a number of weeks, the market finally took a breather and retraced this past week.  The evidence is clear when one examines the index and sector tables. Index BPIs:  We find every index below the 70% line or what we think of as an overbought condition.  While we are not rooting for the market to decline, we are well aware that it cannot maintain those lofty heights for an … [Read More...]

Links to Retirement Articles and Sector ETFs

Interested in retirement articles.  Geoff Considine, developer of the QPP software, has written the first four of five articles on retirement.  You can find the first article using this link.  The other articles can be found by going to the right sidebar under Recent Posts. I had an article published on Seeking Alpha on sector ETFs.  This link will take you to that article. … [Read More...]

300 Level

Iteration Solution

Platinum members using the TLH spreadsheet may find an iteration issue from time to time when the IRR calculation for an investment moves from positive to negative or negative to positive.  The Excel™ SS needs a little nudge to launch the iteration calculation. Go to the TLH SS Help page and reference the #7 help video.  To find the TLH SS Help page, look across the navigation … [Read More...]

QPP Analysis of Actively Managed Mutual Fund Portfolio

Actively Managed Mutual Fund Portfolio The following QPP analysis is one where the portfolio is made up of actively managed mutual funds.  Long-time readers know my opinion about such funds, even though I used them throughout my teaching career.  It was a mistake.  Data was missing for JVLAX so I lumped the money market funds and the percentage (9.54%) held in JVLAX into … [Read More...]

200 Level

Passive vs. Active Investment Strategy

Using Morningstar and Yahoo-Finance to compare stocks and ETF performance.* Here is an exercise that will prove informative to investors who construct portfolios using stocks. Follow these instructions. … [Read More...]

Low Risk Retirement Portfolio

Yesterday, I wrote an article for Seeking Alpha and one reader suggested a simple portfolio where equal percentages be allocated to VTI, GLD, SHY, and TLT.  Exactly what does such a portfolio look like when a Quantext Portfolio Planner (QPP) analysis is applied?  What does the correlation matrix look like and would such a portfolio work as one prepares for retirement?  The following … [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...]

Sharpe Ratio: Why I prefer the Sortino and Retirement Ratios

The Sharpe Ratio is a measure of return-risk for a portfolio or individual investment.  Like many concepts that lend themselves to mathematics, it is easier to understand what the Sharpe Ratio means if written in the form of an equation. S = (R - T)/Sigma     (My editor does not have the correct symbol for Sigma.) Developed by Stanford Professor, William F. Sharpe, … [Read More...]