Portfolio Risk: Do You Know The Value?

This morning I was in a discussion involving indexes, benchmarks, and portfolio risk.  In one exchange, I asked the reader if he knew anyone who could tell him what risk was involved in their portfolio.  Asking the question demanded an answer from me and the portfolios I track.  Here are the latest risk percentages from the seven portfolios available to Platinum members.

The black or first percentage is the semi-variance where the IRR of the portfolio is measured with respect to the benchmark.  The second or green percentage is the mean-variation or standard variation. Other than the Kenilworth, all are extremely low.

Also note that when a portfolio is performing better than the benchmark, the semi-variance percentage is lower than the SD percentage.  The reverse is true when the benchmark is beating the portfolio..

Curie = 0.35%          2.5%

Newton = 1.05%          1.3%

Schrodinger = 0.53%          0.96%

Einstein = 1.02%          1.7%

Kepler = 5.94%          2.1%

Bohr = 8.59%          9.2%

Kenilworth = 170.8%          10.1%


What happened to the Kenilworth portfolio?  It is very young and the VTSMX benchmark took off while this portfolio was under construction leaving it far behind.

Technical Analysis: Is the Market Overbought?

Examining the S & P 500

A number of weeks ago I mentioned the high percentage of individual stocks that were registering a Bull indication in the Point & Figure (PnF) graphs.  While the percentage tailed off a little last week, yesterday's market surge will likely increase the percentage once more.  Here is another important indicator of the current market condition and what we may do about it.

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