100 Level

Modest Portfolio

Portfolio for Advanced and Beginning Investors Return and risk are highly correlated terms when it comes to portfolio construction.  A goal, when running analysis on sample portfolios, is to come up with a Return/Ratio in excess of 0.60.  A second goal is to seek diversification so the Diversification Metric exceeds 40%.  That goal floats as market conditions change.  A third … [Read More...]

Five Wiley Investment Books

There are five Wiley investment books that should be on every bookshelf.  Consider these five volumes to be your key references for successful investing.  Actively use them.  Here are my recommendations, in no particular order. The Investor's Manifesto by William J. Bernstein The Power of Passive Investing by Richard A. Ferri Millionaire Teacher by Andrew … [Read More...]

300 Level

Eight Asset Porfolio

Photograph: When I first walked Devastation Trail in late 1961 or early 1962, there was no vegetation to be seen as it was soon after the eruption. Consider the following portfolio that holds eight assets including cash.  In this analysis, I am using the 20-year treasury ETF, TLT, to represent cash, a substitution that gives the portfolio a slight boost over current money market rates.  … [Read More...]

Madison Portfolio Review: 6 May 2013

Of the eleven portfolios tracked here at ITA, detailed transactions of three (Maxwell, Euclid, and Madison) are not available to Platinum members.  The portfolio up for review today is one of the restricted portfolios.  Therefore, the information for this review is somewhat limited.  Nevertheless, we begin with the Efficient Frontier and Dashboard as is our custom when updating a … [Read More...]

200 Level

Portfolio Performance Update: 5 March 2013

Nearly two months passed since I last updated the portfolio performance data table.  I'm not trying to hide anything.  Instead, I've been working on other projects such as portfolio optimization.  Since the last review the U.S. Equities market has been on a tear.  In context my comments below need to reflect the fact that not all February dividends are recorded in the following data and none of … [Read More...]

Retirement Requirements

Fidelity Investments came out with a study showing that retirees need approximately eight times their last salary level to be properly prepared for retirement.  For example, if one is earning $60,000 at age 65, $480,000 is the retirement base line.  Frankly, I think the number eight is too low.  There are a number of ways to determine what the retirement savings level should be and … [Read More...]

400 Level

Where Are We With The Technical Indicators?

About all I can say about this volatile market comes from Peanuts.  Good Grief!  If I were King, I would cool off market volatility by accessing a small tax on every share traded and not held for fewer than 30 days.  We could balance the national budget and begin to pay off the national debt -- and do it on the backs of those who are able to most afford it.  Since this is … [Read More...]

Bohr On April 30th: Example of New Spreadsheet

This is a sneak preview of the new optimizer-momentum spreadsheet David created today.  The data is what the Bohr portfolio looked like at the end of April.  Some trades occurred in May and those will show up when the Bohr is updated in a little less than a week. Efficient Frontier:  The efficient frontier looks the same as before.  Readers familiar with this graph will not the Bohr Portfolio … [Read More...]