100 Level

Commodity Holdings: DBC vs. DJP

Faber and Richardson recommend using DBC as the commodity holding in their five and ten ETF portfolios.  I favor DJP, an Exchange Traded Notes (ETN) as the commodity placeholder.  Readers can look up the difference between and ETF and ETN on the Internet.  How do these two commodity holdings compare over a time duration of interest.  Since commodities have a rather short … [Read More...]

Five Investment Ideas for 2011

Back in December of 2009 I wrote a blog entry laying out a few investment ideas for readers. Now, nearly 18 months later seems like a good time to check in and see if these ideas are of use and if so, how many were implemented. A few included links takes the reader over to the old blog. Here are the five investment ideas. Read a minimum of two investment books from this list. If … [Read More...]

300 Level

A Three- and Five-Year QPP Analysis Of The New Normal Portfolio

"New normal" is a term coined by the brain trust at the giant bond fund PIMCO.  Bill Gross is frequently given credit for coming up with this term as a way to underscore a change in the expected growth of our economy and investment markets.  "New Normal" is another way of stating that growth is slowing so prepare for it.  One way we prepare is to reset the … [Read More...]

Einstein Portfolio Review

One of the benefits of looking at the Einstein Portfolio is to see what a portfolio looks like when nearly all the asset classes are in balance.  Using a 20% threshold or target boundaries, all but international bonds and two blend asset classes are within the 20% limits.  I'm still debating whether or not I want to continue to hold mid-cap blend (VO) and small-cap blend (VB) as both … [Read More...]

200 Level

Euclid Portfolio Review: Major Asset Allocation Adjustment

What does the Strategic Asset Allocation plan look like for a portfolio built around the "New Portfolio" model?  Using the Euclid as a model, we move from having nearly all the asset classes in balance to a sea of blood with the new allocations.  Check out the Euclid Dashboard shown below. … [Read More...]

ITA Portfolio Performance: 26 May 2012

While the individual portfolios increased in value this week, nearly all lost ground with respect to both the ITA Index and VTSMX benchmarks.  That is to be expected any time the market moves up considering that many of the portfolios are out of a number of asset classes and in cash or other income generating instruments.  Portfolios such as the Curie, Newton, Schrodinger, Einstein and … [Read More...]

400 Level

Suppose Today Was October 2nd

Suppose this was October 2nd instead of September 2nd and the alert is on for the Maxwell and Euclid portfolios.  It is time to fire up the StockCharts graphs for VTI, VEU, VWO, VNQ, and RWX.  Assume we are always going to include TLT and TIP in the portfolio.  Using VNQ as showing in the graph below, how do we interpret what move to make, assuming we were out of the market with … [Read More...]

Optimizing QPP Analysis Asset Allocation Models

Some years ago I tested a Mean-Variance Optimization (MVO) software program that was designed for William Bernstein.  Manual data entry and knowing if it was accurate proved to be a problem.  Much to my surprise, I recently received an e-mail from the developers of Quantext Portfolio Planner (QPP), pointing me to an article that an Excel™ guru developed an optimization spreadsheet that links to … [Read More...]