100 Level

Delta Factor: What Is It?

Exactly what is the "Delta Factor?"  While I don't plan to reveal the exact algorithm, here are the basic ideas.   1.  A growth projection is estimated for the S&P 500 for the next year.  In most cases, I assume the S&P 500 will grow at an annualized rate of 7% over the next several months. 2.  The historical period is set for three to five … [Read More...]

Pros and Cons of Index Investing

While scanning the Internet, I ran into this interesting post on the pros and cons of index investing. The writer covers many points we attempt to combat through our approach to portfolio construction and asset allocation. The author chides index investors for being too complacent.  We are anything but complacent and one way we avoid this problem is to accurately maintain and monitor … [Read More...]

300 Level

Constructing a Simple Seven ETF Portfolio

Looking for a conservative portfolio with reasonable QPP values?  Check out the following asset allocation plan that includes 40% allocated to bonds and income with an added bent toward value as advocated by Fama & French.  This portfolio covers the global market, both in equities and REITs.  The EFV ETF skews the portfolio toward the value side. … [Read More...]

Bohr Performance Data: 19 November 2012

The only trade over the last month was to sell nearly all shares of DBC since the price moved below its 195-Day Exponential Moving Average (EMA).  While the Bohr is not one of the five ITA Risk Reduction (ITARR) model portfolios, I still applied the idea under certain circumstances.  As Platinum can see from the Dashboard below, while the asset classes are within the target limits, there are a few … [Read More...]

200 Level

Updating the Basic Portfolio

Here is the latest data on a basic portfolio for investors about to launch a new portfolio.  The shares for this $100,000 portfolio present an example and each investor needs to make their own decisions.  Some portfolio tweaking will be suggested below when we take a look at the Buy-Hold-Sell Recommendation table. ETF Ranking:  While this is a basic list of ETFs, there will still be some … [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

International “Delta Factor” Projections

Responding to a request to show the "Delta Factor" projections for international ETFs, here we have a much more interesting set of results.  As the reference for DF projections, I use EFA, the international iShares ETF. The following material is not available for publication elsewhere on the Internet. … [Read More...]

Bullish Percent Indicators Show Markets Continue to Weaken

Bullish Percent Indicators (BPI) provide us with a broad look at large index and sector movements for the U.S. Equities market.  While I do not use either the index or sector tables as trading tools, I do watch them for general market trends and as guides to determing when the market is over bought or over sold.  Right now the market is over bought and weakening. Index BPI:  One significant … [Read More...]