100 Level

Advice for a Beginning Investor

This week I met a woman (I'll call her Rose) who was asking for investment advice.  Rose is new to investing and wanted to know how she can begin investing in the stock market.  Here is the advice I passed on and if other readers want to add to this basic advice, post your ideas in the comments section associated with the blog entry. 1.0  Open up an account with TD … [Read More...]

Five Essential Asset Classes

Five ETF Basic Asset Class Portfolio There are specific asset classes that need to be part of every portfolio.  Here is a list of the basic group I include in every portfolio.  While the ETFs shown below serve as examples, every portfolio will eventually include these five asset classes. U.S. Equities - VTI Domestic Bonds - BND or AGG Developed International Markets - VEU or … [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...]

Current Ranking of Feynman ETFs

Platinum members following the Feynman articles and the ETFs that make up this research portfolio will find the current rankings of interest.  It is possible to substitute Vanguard ETFs for the iShares ETFs with a minimum of Internet searches.  Here is the ranking as of 8/5/2013. ETF Rankings:  While the optimizer recommends holding shares in VWO and DBC, those are two ETFs I would avoid except … [Read More...]

200 Level

Active vs. Passive Investing: Part 5

The author of the Active vs. Passive Investing Returns: Does Passive Outperform? paper begins Section Five with this statement.  "Other research supporting the conclusion that passive investing outperforms, comes from analysis of pension plan returns.  Although slightly different, pension plans have most of the same problems as mutual funds.  They are only a subset of the … [Read More...]

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...]

400 Level

Looking Ahead to Kenilworth Risk Reduction Analysis

Tomorrow, Tuesday, is the scheduled date to run the ITA Risk Reduction analysis on the Kenilworth Portfolio.  Both emerging market and commodity asset classes are under target.  Checking this morning, I note that Vanguard's emerging market ETF, VWO, is nearly a dollar above its 195-Day Exponential Moving Average - and likely to remain there after the market close tomorrow.  This … [Read More...]

Bullish Percent Indicators Update: 12 April 2013

Few changes occurred in the Bullish Percent Indicators over the past week.  Some increases in values were noted, but no shifts between the offensive and defensive teams.  For the benefit of new members, this weekly update is what we use to gauge the overall condition of the U.S. Equities market. The following material is not available for publication elsewhere on the Internet. … [Read More...]