100 Level

Another Six Asset Class Portfolio

Photograph: Grill of a Delahaye sedan photographed at the Mullins Automotive Museum in Oxnard, CA The screen shot below shows the analysis of a six asset class portfolio.  TLT, BSV, HYG, and TIP ETFs all fall into the bond/income asset class leaving VTI, VEU, VWO, VNQ, and DBC to represent individual asset classes. While this portfolio is superior to many recently posted, it still falls … [Read More...]

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...]

300 Level

“Creme List” for February 18

Twenty stocks made the "Creme List" this week, a high number based on results over the past year.  LLTC was cut from the list as it went more then 13 weeks without making the elite list.  Only one stock is priced to buy based on my analysis.  This is not surprising considering the high market. Check the stock with the * in the following data table. … [Read More...]

Bohr Portfolio Review: 15 September 2011

Since the last update, shares of RWX, VOE, VEU, VTV, DVY, VWO, and VUG were added to the Bohr portfolio.  The number of shares were small as most of the asset classes are in balance.  The two asset classes that need attention are large-cap value and international REITs.  I over-shot large-cap value with purchases in VTV and DVY.  Mid-Cap Blend will take care of itself.  As … [Read More...]

200 Level

Preparing for Retirement: Avoid the Dunning-Kruger Effect

A few days ago I came across an article on the psychology of investing over on the Portfolioist blog.  The article is written by Daniel R. Solin, author of "The Smartest Portfolio You'll Ever Own." Readers will recall that I analyzed some of the portfolios from the Solin book here on ITA Wealth Management.  When I read articles of how our brains can get in the way of … [Read More...]

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...]

400 Level

Monitoring VTI StockCharts

Keep an eye on the StockCharts graphs for VTI, VEU, VWO, VNQ, and RWX. This link will take readers to the VTI graph.  … [Read More...]

Fama & French – Value Risk Factor

  Sculpture on Main Sacred Way to Ming Tombs Fama-French’s value risk factor is at the heart of their paper, The Cross-Section of Expected Stock Returns.  This link connects you to an abstract of their paper.  It takes someone like William Bernstein to explain the research study and its importance.  Let me quote from "The Intelligent Asset … [Read More...]