100 Level

“Delta Factor” – What is it and is it useful?

Context is essential when developing an argument, and that is what this post on the "Delta Factor" is designed to do.  Rather than use ETFs in the "Delta Factor" argument, I selected 20 well-known stocks so I could dip back to the late 1900s for data.  Many ETFs we use did not exist in the late 1900s and early 2000s and most that did lack the necessary historical data … [Read More...]

Portfolio for 30-Year Old

If you are between the ages of 25 and 35, you might find this analysis of interest.  I submitted this article to Seeking Alpha yesterday. Later this morning I look for an update of the Curie Portfolio. If this were the end of the month instead of the Winter Solstice, we would be taking out full positions in VTI, IWN, and VNQ.  Obviously, the U.S. market is performing much better than … [Read More...]

300 Level

Newton Portfolio Review: 9 August 2011

Review of the Newton Portfolio was moved forward as shares of VEU, VBR, VOT, and VOE were purchased last week.  Dividends also came in from EMB, TLT, BND, HYG, and TIP.  Below is the current Strategic Asset Allocation plan for the Newton.  The ETF additions were purchased in such small amounts that asset classes remain under target.  This is an intra-day Dashboard.  I … [Read More...]

Benchmarking a Portfolio

What are the requirements of a good benchmark? The topic of portfolio benchmarks came up again on a forum, so I thought it a good idea to lay down some rules for what constitutes a good benchmark. Here are my ideas on this subject.     1. A good benchmark must be one that an investor can actually purchase. Call it an investable benchmark. This is why investors should shun the … [Read More...]

200 Level

The Active vs. Passive Management Debate

Will there ever be a definitive answer to the active vs. passive management debate?  Likely not and here are possible reasons why we will never have a complete answer to which method is superior.  At the very core of the argument is lack of data, at least as it pertains to one level of the argument.  The active vs. passive argument is carried on at two levels.  One level is … [Read More...]

Alternative Investment Vehicles to Suggested Index Funds

What are the alternatives one might use to those suggested by Solin in his recent book, "The Smartest Portfolio You'll Ever Own."  The reason for seeking alternative investments is two fold.  1)  We seek ETFs that have historical records of at least three years.  This is so we can run Quantext Portfolio Analysis (QPP) on the portfolios.  2)  When … [Read More...]

400 Level

Bullish Percent Indicator Update

A stronger market this past week resulted in the Bullish Percent Indicator improving for several indexes.  However, our primary BPI, the NYSE, continued to decline.  The data is presented in the following table.  Note that the NASDAQ 100 shifted the ball from defense to offense.  It will be interesting to see if technology leads the U.S. market out of this mini-bear … [Read More...]

The Feynman Portfolio Study

Lowell has invited me to author a series of posts on the ITA Wealth Management website that may be of interest to Platinum members interested in learning more about the practical application of some of the strategies, tactics and analysis tools that Lowell uses on the site and how these might be expected to perform under a variety of market conditions. I plan to do this by back testing the … [Read More...]