100 Level

“Delta Factor” – What is it and is it useful?

Context is essential when developing an argument, and that is what this post on the "Delta Factor" is designed to do.  Rather than use ETFs in the "Delta Factor" argument, I selected 20 well-known stocks so I could dip back to the late 1900s for data.  Many ETFs we use did not exist in the late 1900s and early 2000s and most that did lack the necessary historical data … [Read More...]

First Things First

Yesterday, I was having coffee with a friend and we were discussing Blog writing and how we try to make the information interesting and understandable. This fellow writes on an entirely different topic, but the motivations are similar. In both cases, we are interested in helping our readers. In our discussion, we both agreed that it is necessary from time to time to go back to the beginning and … [Read More...]

300 Level

Avoid Losses

There is nothing quite so painful to the long-term investor as watching their portfolio experience a long and precipitous decline. Most of us experienced this in 2000 through 2002 and again in 2008 and early 2009. Diversification did not help all that much in the recent severe bear market. Asset allocation, no matter how carefully designed, did not perform as we expected. All asset classes seemed … [Read More...]

Where Should We Be With The Newton Portfolio?

The following optimization-momentum analysis shows where we should be position with Newton holdings were we to religiously follow the Hoadley spreadsheet recommendations. Efficient Frontier:  The current portfolio is nearly on the efficient frontier graph.  Overall the portfolio is a tad more conservative than the optimized portfolio, as indicated by the small red dot.  The diamond dot will … [Read More...]

200 Level

Smartest Low-Medium Risk Portfolio

With this low-medium risk portfolio we move up one notch in aggressiveness. This is still a very conservative portfolio with 60% committed to the bond/income asset class. Moving from 80% in bonds down to 60% brings about an increase in both projected return and projected uncertainty.  The Return/Uncertainty ratio is still a respectable 0.62. Platinum membership is available for a low $5.00 … [Read More...]

Newton Portfolio Update: 7 February 2012

Once more it is time to update or review the Newton Portfolio.  Shares of RWX, VWO, VOT, and PCY were recently added to bring various asset classes into balance.  Most of the February dividends are included in this review.  As usual, the first order of business in any update is to go to the broker account and make sure all the latest transactions are recorded.  I've done … [Read More...]

400 Level

What Sector ETFs, If Any, To Include In Portfolio?

Certain ETFs are automatically included as potential candidates for inclusion when constructing a portfolio.  A few of the very basic ETFs are:  VTI, VEU, VWO, VNQ, RWX, BND, etc.  There are many more, but you get the idea.  Sector ETFs are not automatically included in the basic building blocks and that is why I periodically run a ranking of the sector ETFs to see if any should be included as … [Read More...]

Bullish Percent Indicator Weekly Update: 22 September 2012

In the following tables we have the Bullish Percent Indicators for seven indexes and ten sectors.  As mentioned in a recent comment, I added the Dow Jones Transportation BPI to the list of indexes.  DJTA has one of the lower percentages or fewer companies with bullish PnF graphs.  Look over both tables and I think most Platinum readers will conclude with me that these markets are … [Read More...]