100 Level

Portfolio Construction: Asset Allocation Percentages Are Vital To Success

 Photograph: Fisherman in Greek Islands   This Blog is dedicated to helping the beginning investor build and monitor a portfolio.  Here are a few of the basic guidelines. Skew the portfolio toward small-cap ETFs and play down large-cap ETFs.  Evidence for this shows up in the Portfolio Performance data tables. Emphasize value over growth as value outperforms growth … [Read More...]

AAII Journal: November Issue

As a lifetime member of the American Association of Individual Investors, I receive their journal each month. The November issue was of particular interest as it included 20 pages of the best financial web sites on the Internet. In addition to all those investment links this issue carried their ETF portfolio of which I analyze in a post tomorrow. There is also an article, "Is the Stock … [Read More...]

300 Level

Einstein Update: 12 December 2011

I've been compressing the time between portfolio reviews in order to keep up with year-end changes.  For the most part, this portfolio is in good shape  Asset classes are in balance with a few exceptions.  This portfolio does receive a small infusion of cash each month and we will be using it to pull up international REITs, the one asset class that is below target.  … [Read More...]

Bohr Portfolio Update: 30 January 2012

Today I added shares of VWO and RWX as emerging markets and international REITs were both under target.  Even though the Bohr Portfolio is not part of the ITA Risk Reduction experiment, there is an incentive to fill up asset classes where the current price of the the ETF is above its 195-Day Exponential Moving Average (EMA). … [Read More...]

200 Level

Asset Allocation: Selecting A Plan

In response to questions that continue to emerge from readers regarding asset allocation breakdowns for various portfolios, I put together the following data table.  The first thing I did was to select seventeen (17) commission free (free to TDAmeritrade clients) ETFs that can be used to populate all the asset classes one might need to put together a portfolio.  If a user so desired, the … [Read More...]

Portfolio Performance: 16 September 2011

After a strong week of market gains, much of the rise was domestic as the international markets, commodities, etc. were a drag on our diversified portfolios.  A few portfolios showed gains in the Retirement Ratio, but the relative performance was lacking when measured against the VTSMX benchmark.  Holding SDS and cash had negative effects on both the Curie and Newton portfolios. To see … [Read More...]

400 Level

Should One Sell GTU In An Effort To Manage Risk?

Yesterday I reviewed the buying and selling decisions using VNQ as an example.  Today I am reviewing our gold holding, GTU, as the price is currently well below its 195-Day Exponential Moving Average.  For portfolios following the ITA Risk Reduction model, we are out of this ETF based on those relative positions of price and EMA.  Are there confirming sell signals related to GTU? The Bullish … [Read More...]

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...]