Portfolio Monitoring

Newton Portfolio Updated

Over the last few days, a few shares of international bonds in the form of EMB were purchased.  This was a "toe dip" in an effort to set up all the links within the TLH spreadsheet.  I also picked up shares of VEU and VBR for the Newton.  Despite these additions, both asset classes are still well below target.  See the Dashboard below.

On another topic not related to the Newton, I've been running some QPP analysis of historical data to see how well the "Delta Index" worksheet is showing up in pointing investors toward full or partial investments.  The worksheet data is not sufficiently accurate to time the market, but it does look sufficiently strong to tilt portfolios one way or the other.  For example, back in January of 2009 the "Delta Index" worksheet was giving signals it was time to be fully invested in equities.  Those same signals are somewhat muted in today's market.

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Asset Allocation Working

Kepler Portfolio Updated

The asset allocation plan for the Kepler Portfolio is working as expected.  The explanation is provided in the second screen shot.  With exception of Large-Cap Blend, this portfolio is in balance.  Cash will always be out of balance so long as 0% is the allocation. 

Over the last few days, a cash deposit was made to the Kepler and shares of VO and VTI were purchased.  In fact, four small purchases of VTI were added between 5/20 and 5/25.  Now that TDAmeritrade offers so many commission free ETFs, investors have a golden opportunity to fine tune the Strategic Asset Allocation (SAA) plan of their portfolio.


In the following screen shot we have the performance data for the Kepler.  When I say the asset allocation plan is working, check the performance of the ITA Index and compare it with the VTSMX benchmark.  While the performance of the Kepler lags the VTSMX benchmark by a mere 0.1% point (-0.1%), the ITA Index, had the portfolio always been in balance, is performing better than the VTSMX.

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