100 Level

Quotes From “Millionaire Teacher”

The following five quotes come from Andrew Hallam's book, Millionaire Teacher. 1) Index fund investing will provide the highest statistical chance of success, compared with actively managed mutual fund investing. 2) Nobody yet has devised a system of choosing which actively managed mutual fund will consistently beat stock market indexes.  Ignore people who suggest otherwise. 3) … [Read More...]

Dollar Cost Average, Value Average, or Jump In Now

"Once desired allocation is determined, what is best way to execute the plan:  Dollar Cost Average (DCA)  or Value Average (VA) over a period of time or all at once?"  This was question 17 on the list from this blog entry.  I don't have an easy answer to this question.  Maybe I should if this site provides any clues.  Considering that Rukeyser's … [Read More...]

300 Level

Preparing for the Gauss Portfolio Review

Prepping for the Gauss shows some changes are recommended.  That becomes apparent when one examines the Efficient Frontier graph shown below.  We need to increase ETFs that have a greater probability of bringing returns to the Gauss.  The second and third screenshots will help identify those ETFs. The following material is not available for publication elsewhere on the Internet. … [Read More...]

Bohr Portfolio Modifications

I made a few changes in the Strategic Asset Allocation plan for the Bohr Portfolio.  I am planning to sell off the holdings in mid-cap blend and small-cap blend, something I indicated I might do with the Einstein.  Those dollars will be moved to small-cap value in keeping with the Fama-French research. … [Read More...]

200 Level

An Optimized 18 ETF Sample Portfolio

In response to concerns over the allocations to specific ETFs shown in the "Maximize Return/Risk" sample portfolio, below is an optimized revision.  Removed are the individual stocks as they always require an additional layer of complex analysis.  In their place I added VFH, the financial sector ETF that is currently showing a buy based on "Delta Factor" analysis.  I also replaced GLD with another … [Read More...]

Portfolio Performance Update

With the significant drop on Thursday of this week, I wanted to see how the various portfolios survived the 3/10 downdraft.  Below is the performance data table, and for the most part, the various portfolios held up quite well.  The IRR values for the portfolios updated through 3/10/11 are conservative for several reasons.  The March dividends are missing from many of the … [Read More...]

400 Level

Strictly International: What Is The Delta Factor Projecting?

Several weeks passed since I last updated the "Delta Factor" projections for international ETFs.  In addition to the usual Delta Factor projections, I also ran an optimization of these ETFs to see where the QPP indicates best buys.  First, the Delta Factor projections. … [Read More...]

Using “Delta Factor” Analysis for Initial Equities Investments

A common question, if one is holding a large amount of cash, is when to begin putting it to work in the market.  This question came up several times recently with Platinum members who are beginning to lay out a Strategic Asset Allocation (SAA) plan and have selected ETFs they will use to populate the different asset classes.  Arguments can be made to invest all cash immediately since the … [Read More...]