100 Level

15-Stock Diversification Myth

Diversification Myth Debunked   How many stocks does it take to eliminate portfolio risk?  The number 12 to 15 often crops up.  If that is too few, then maybe 20 to 30 will do.  This number has also come under fire, particularly in a world economy where U.S. companies no longer make up the majority of available companies and our economy is shrinking as a percentage of the … [Read More...]

My Saving Plan Is In Place: What Is The Next Step?

Is it safe to assume you have read one or more of the following sources? 1) Chapter 1 of The Elements of Investing by Malkiel and Ellis 2) Pages 143 - 144 and 152 - 154 of The Investor's Manifesto by William J. Bernstein 3) Pages 179 - 184 of The Power of Passive Investing by Richard Ferri 4) Rule 1 (Chapter 1) of Millionaire Teacher by Andrew Hallam Using these resources, and … [Read More...]

300 Level

Sample Portfolio Analysis: Part II

The following portfolio analysis makes use of the Hoadley-momentum-optimizer spreadsheet.  Providing a "cat-bird-seat" view of the portfolio is the efficient frontier graph.  We follow that with a ranking of the securities and finally, the Buy-Hold-Sell Recommendations.  Please note that the number of shares only represent percentages and is not a picture of the actual size of this … [Read More...]

Madison Portfolio Revisited: 18 May 2012

Photograph:  Alaska-Canada Highway Milepost located in Fairbanks, Alaska One of the five portfolios following the ITA Risk Reduction model is the Madison.  Below is the current Dashboard, a worksheet extracted from the TLH Spreadsheet.  As Platinum members can see, the portfolio looks a little "bloody" - to be expected in this type of mini bear market. Platinum … [Read More...]

200 Level

Active vs. Passive Investing: Part 7

Section Seven of the "Active vs. Passive Investing" article is sumarized the following paragraph. "Some indexers never claim passive investing gives superior returns. They claim only that active investors do better than the benchmark some of the time, and worse some of the time, while passive investing gets rid of that risk by equaling the benchmark every time. They admit some … [Read More...]

Portfolio Performance Data

Momentum principles continue to produce positive results as Platinum members will see in the following data table.  Right now I am making comparisons from week to week.  Eventually I want to extend the information out over at least five weeks so each portfolio has a chance to go through at least one review cycle.  Until I build that data I will make week to week comparisons.  The problem with … [Read More...]

400 Level

Bullish Percent Index Update: 9 August 2013

Each week readers are treated to a broad look at major U.S. markets as well as sectors of the equities market.  This week shows slight declines in the major markets, but not sufficient to turn the ball over to defensive teams.  All the major markets remain sufficiently positive to record X's in the right-hand column of the Point and Figure graphs.  Examine both tables below for detailed … [Read More...]

Bullish Percent Indicators: 14 September 2012

What a great week for investors!  The Bullish Percent Indicators reflect the strong market, as one might expect.  The question now facing us is, how do we protect profits and can we look forward to a 10% correction?  The negative can wait.  Let's enjoy the week and focus on the positive results. … [Read More...]