100 Level

Five Rules of Investing

  Basic Rules of Investing* A Review   Rule #1: Develop a Portfolio Policy. While there are many sub-rules within this fundamental rule, at least begin with some sort of policy. This may require a lot of reading and I recommend a number of good books on this site. Put in the advanced time reading and it will save you heartache and thousands of dollars over a lifetime. All … [Read More...]

Three Asset Class Portfolio

Suppose someone told you to build a portfolio, but the upper limit of investments was three.  You could pick three stocks, three mutual funds, three ETFs, or any combination of three investments.  What three investment vehicles would you select, and why would you pick these three? None of us wants to be limited to only three investments, but that is the challenge of this … [Read More...]

300 Level

Rebalancing: How Important?

Below are rebalancing results that Bob Warasila recently updated.  As background for this study, we started with eight asset classes and invested $10,000 in each for a total of $80,000 for the portfolio.  The asset classes consisted of the "Big Six," REITs, and International Markets.  In 1989 I did not have easy access to data on commodities, international real estate, … [Read More...]

Bohr Portfolio Update: 5 January 2012

Shares of VTI and VWO were purchased this morning and additional limit orders are in place in an effort to bring the under-target asset classes back into balance.  Platinum members will note that emerging markets and international REITs are significantly under the target percentages.  I'm not in a big hurry to fully populate these asset classes with VWO and RWX as the ETFs are priced … [Read More...]

200 Level

Running Out of Money In Retirement

A few months ago I posted a blog entry about the probability of running out of money in retirement. What I did not do in that entry was run a stress test on a portfolio to examine what might happen should a retired investor experience another three standard deviation dip as we came through in 2008 and early 2009.  Later today I plan to take either the Schrodinger or Curie Portfolios as the … [Read More...]

Sample Portfolio For The Mosaic Investor

Investors who use a few individual stock will be interested in the following portfolio suggested by a reader.  By Mosaic, I mean an investor who uses an array of index ETFs (or index funds) and then sprinkles in some individual stocks. QPP Analysis of Suggested Portfolio:  In this analysis the S&P 500 is assumed to grow at an annual rate of 7.0% so this portfolio is projected to outperform … [Read More...]

400 Level

Current Condition of ITA Risk Reduction Model

Platinum members who implemented the ITA Risk Reduction model must be smiling.  Of the "Big Seven" ETFs used in this model, only VNQ is currently holding firm above its 195-Day Exponential Moving Average (EMA).  VTI, IWN, VEU, VWO, IGE, and RWX are all priced below there respective 195-Day EMAs.  ITARR users need to remember we are in the "neglect phase" of this … [Read More...]

Four Sector ETFs Outperforming the Broad Market

Three sector ETFs, Consumer Discretionary (VCR), Healthcare (VHT), and Financials (VFH) have consistently been performing above Vanguard's Total Market ETF, VTI, for a number of weeks. Today, another sector ETF, Industrials (VIS) pulled ahead of VTI. When ranking securities within a portfolio, VTI is used as a performance benchmark and any sector ETF that outperforms the VTI is included in the … [Read More...]