100 Level

Active vs. Passive Decision

Active vs. Passive Management If the decision to handle your own investments is the answer to question #1 in this series, then going Passive is a no-brainer. The evidence for the passive approach to investing is so overwhelming anyone but Warren Buffett taking the active route needs to study statistics. Goldie and Murray write, "The Efficient Market Hypothesis asserts that no investor will … [Read More...]

The Nine Rules of Investing from “Millionaire Teacher”

Another new book worth reading is Andrew Hallam's Millionaire Teacher.  The book is built around the following nine rules of investing.  I add my brief summary of each chapter. Rule 1:  Spend Like You Want to Grow Rich This chapter provides a glimpse into how Hallam turned down the screws of living and saved and saved and saved.  His personal experiences are classic … [Read More...]

300 Level

Weighted Ranking SS Update

If your portfolio is approximately $100,000, the following percentages and shares are laid out for investors going into this coming week.  We first start with the most recent rankings data to start the week.  This information applies to all Platinum members regardless the size of your portfolio. ETF Rankings:  The following ranking is current as of 9/27/2013.  Note the change in the starting … [Read More...]

TEVA: A Stock Worth Further Examination

This past weekend I was running my dividend stock screening program to see which companies passed the screen.  Then I recalled that I once had a "valuation" screen that looked for companies that were priced under numerous valuation parameters as laid out in the Stock Investor Professional, AAII's stock screening program.  Here are the valuation parameters I used for my screen, in addition to the … [Read More...]

200 Level

Asset Classes: How Many Should You Own?

With much recent attention given to answering the money managers most perplexing question, what percent of the portfolio should be invested in each asset class, the whole idea of how many asset classes to include in a portfolio has been neglected.  William Bernstein answers the question this way.  "You might as well ask the meaning of life.  About all one can say is, more than three."  The major … [Read More...]

Capital Markets Outlook and Retirement Payout Percentage

Platinum members are well aware of my conservative recommendations when it comes to the payout percentage during retirement.  While it is common to suggest a payout of 5% during retirement, I advocate pulling out as little as 2% per year and no more than 4%.  Lowering the payout rate "insures" one will not run out of money in retirement.  I hope to have a spreadsheet that … [Read More...]

400 Level

Portfolio Risk: Why is Standard Deviation Important?

Questions surrounding standard deviation (SD) keep cropping up.  Why is SD important when it comes to developing a Strategic Asset Allocation plan for a portfolio? Anyone who has worked with portfolio building software knows how projected return and uncertainty or risk are intimately connected. When I was teaching, I would analyze the scores of my students as I wanted to see if all numerical … [Read More...]

QPP Analysis for Equity ETFs

It has been over a month since I last ran a "Delta Factor" analysis on equity holdings.  Platinum members will not be surprised when you see what ETFs are showing up as potential buying opportunities.  Keep in mind that the "Delta Factor" is a reversion-to-the-mean analysis.  What this means is that ETFs recently hammered into the ground are going to show up as a … [Read More...]