100 Level

Five Critical Investment Decisions

    Gordon Murray and Daniel Goldie lay out five investment decisions in their book, "The Investment Answer."  While not a complete list, these five will launch a beginning investor. If investors were to follow Murray and Goldie's advice, far fewer dollars would flow from portfolios into the coffers of Wall Street.  The following decisions are found on pages 6 … [Read More...]

Investor’s Biggest Mistake

Without a doubt, the biggest mistake investor's make is violating "The Golden Rule of Investing."  The error is not tied to selecting poor stocks, making bad market timing decisions, or even mis-allocating assets.  Sure, those mistakes hurt portfolio performance, but it is inadequate saving early in life that is the culprit.  Failure to save early places incredible … [Read More...]

300 Level

Bohr Portfolio Review: 27 July 2011

Few changes occurred in the Bohr Portfolio since the last review.  The asset allocation remains the same, and as readers can see in the first screen shot, most of the asset classes are in balance.  Excluding cash, only Small-Cap Growth and Bonds/Income are out of balance.  Limit orders are in place to correct these imbalances, but as I wrote last weekend, I lowered the … [Read More...]

Delta Factor and Stocks of Interest

Out of curiosity, I wanted to see what the "Delta Factor" would tell us for a group of stocks that show up with a "Buy" signal on my Watch List or 150 stocks.  Without a lot of comment, below is a list of stocks that are priced for purchase based on the pricing models I use within the Watch List.  Extracting only those stocks, I ran them through the "Delta … [Read More...]

200 Level

Kepler Review: 1 August 2011

It is again time to review the Kepler Portfolio.  The Dashboard worksheet shown below is the asset allocation plan for the Kepler and the second screen shot includes the performance numbers as of 9:40 a.m. on August 1, 2011.  When I discuss setting up a Strategic Asset Allocation plan for a portfolio, the slide below is such an example.  Note how the percentages are allocation in … [Read More...]

QPP Analysis of Swensen-Faber Merged Portfolio

Merging ideas from the "Swensen Six" and "Faber Ten" portfolios has the potential to generate a wide array of asset allocation plans.  In the following example I am sticking with the general percentages allocated to the broad asset classes, as recommended by David Swensen, but you will see that I am adding asset classes as suggested in the "Faber Ten" portfolio. … [Read More...]

400 Level

Staying On The Right Side Of The Market With A Ten ETF Portfolio

Remaining on the right side of the market is critical to reducing portfolio risk.  Platinum members should be well aware of the ITA Risk Reduction model, our first line of defense.  Remember Faber's axiom that ETFs are more volatile when they are priced below the 200-Day Simple Moving Average.  Here at ITA we use a faster EMA, but the difference is not significant and the … [Read More...]

Condition of Critical ETFs and The ITA Risk Reduction Model

When a portfolio is coming up for ITARR review or examination, I begin to check on the eight critical ETFs used to populate the portfolio.  Those eight ETFs are: VTI, IWN, VEU, VWO, VNQ, RWX, DBC, and PCY.  The next move is to activate SharpCharts to see where the price of the ETF is positioned with respect to the 195-Day Exponential Moving Average (EMA).  If nothing changes over … [Read More...]