100 Level

Five Investing Tips to Launch a Successful Retirement Program

Five money hints below will put you on the road to financial success. Follow "The Golden Rule of Investing." Save as much as you can as early as you can. Live below your means.  Learn self-discipline and stop spending on trivial material goods. Avoid Credit Card debt as it will kill your chances of success. Invest in index funds or index ETFs.  Many … [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

Kepler Portfolio Update: 15 December 2011

The Kepler Portfolio is a broadly diversified array of ETFs that encompass global markets.  We do not hold any international bonds and there are no plans to expand into that asset class for this portfolio.  Below is the Dashboard, the familiar worksheet extracted from the TLH Spreadsheet.  The international REITs asset class is empty as I sold all shares to take a tax loss for the … [Read More...]

Sample Portfolio #1

Here is the analysis of a portfolio recently mailed to me.  This analysis is one of the perks that come with Platinum membership.  The first screen shot shows the QPP analysis and the second slide is the correlations of the securities within the context of the portfolio.  Comments are welcome from Platinum readers. … [Read More...]

200 Level

Rebalancing Portfolio: Blending Dashboard and Optimizer

Now that an optimizing tool is available, how does one rebalance a portfolio by combining the output of an optimizer with the Dashboard guidelines?  The larger topic is one of asset allocation so I will start with the following Dashboard that defines an asset allocation plan. Dashboard:  Assume the following Dashboard lays out the Strategic Asset Allocation plan for a portfolio.  Only pay … [Read More...]

Newton Portfolio Review

Thirty shares of VO were added to the Newton yesterday, bringing the Mid-Cap Blend asset class closer to balance.  I am slowly pulling this portfolio back into balance.  Emerging Markets (VWO) is the asset class that needs primary attention.  Plenty of cash is available in the Newton, making it much easier to bring asset classes below target back up to their targeted … [Read More...]

400 Level

Risk Management: How To Reduce Losses

On page 167 of Mebane T. Faber and Eric W. Richardson's book, "The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets" we read, "Our research has shown that returns are lower and volatility is higher when asset classes are below the 10-month moving average."  What investor is not interested in reducing portfolio volatility while increasing returns.  And possibly more … [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...]