100 Level

Welcome To New Platinum Members

New Platinum members who signed up over the last few months and still trying to find your way around this blog will benefit from moving over the the right sidebar and clicking on either Beginning Investors or Critical Material categories.  The advantage of using Categories is that you will pick up the oldest blog posts first, whereas doing a search for a topic will bring up the latest blog … [Read More...]

Portfolio Rebalancing: Essential or Overrated

Portfolio rebalancing is as old as asset allocation and it is one of the cardinal rules of portfolio management.  It is an action or discipline used by money managers to keep the percentages of the various asset class within stated target limits.  Rebalancing policies assure the investor that the portfolio continues to be well diversified.  If one never rebalances the market will … [Read More...]

300 Level

Einstein Portfolio Update: 27 October 2011

Several moves took place over the last few weeks in an effort to bring more asset classes into balance within the Einstein Portfolio.  Shares of VO and VB were sold in order to bring mid-cap and small-cap blend within the 20% threshold limits.  Shares of the International bonds (BWX) were added and we made a few small purchases in IEF and BND to bolster the bonds asset class.  Bonds … [Read More...]

Updating the Curie Portfolio: 5 October 2011

Below is the standard review for the Curie Portfolio.  Yesterday, all remaining shares of the ultra-short ETF, SDS, were sold out of the Curie.  The two SDS sales gave us a 7.8% Internal Rate of Return (IRR) for this particular ETF. adding value to the portfolio.  For a long time it looked like a loss would result from holding SDS, but the recent major market decline finally brought … [Read More...]

200 Level

Active vs. Passive Investing: Part 8

Section Eight of the Active vs. Passive article includes the following criticism of index investors. Some indexers claim superiority by simply dismissing the reported returns of active investors. They claim these investors do not know how to properly measure returns - either on a year's basis, or multi-year basis. But no proof is presented for this position other than personal anecdotes. … [Read More...]

Ranking Vanguard’s Sector ETFs

One of the portfolios up for review this week is the Gauss.  In preparation for that update I'm looking for ways to improve the performance of this portfolio as it still lags the VTSMX benchmark.  I thought I would rank the Vanguard sector ETFs (minus VNQ) to see if there are any potential "momentum" ETFs among this group.  Below is the latest ranking. Sector Rankings:  The financial (VFH) ETF … [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...]

U.S. Equities Is The Place To Be Invested

It has been many weeks since I ran a screen on international markets, particularly individual countries.  I have approximately 40 countries on my list and since it takes the Hoadley optimizer a long time to run such a large number of securities I broke them up into two groups.  In both runs, VTI ranks at the very top.  Here is an example. … [Read More...]